New Data Centre Guidelines Launched in Ontario

Ontario Premier Doug Ford introduced the province’s new data centre guidelines on Thursday, stating it will “ensure Canadians’ data remains in Canada.”

The guidelines for approving data centres rely on three main areas: economic growth, data protection and sovereignty, and community investment and public trust.

“With our new data centre playbook, our government is set on building the economy of tomorrow that will bring billions in growth, boost tax revenues, and create thousands of jobs while making sure data centres follow the right rules,” Ford mentioned during his announcement in Guelph.

“Our framework will ensure that data centres pay for their total electricity consumption, pushing projects to develop their own power sources and creating a different rate category for large new data centres that is higher than current industrial rates for major users. No costs will be passed onto hardworking Ontario families.”

An aerial image of construction at the TOR1X0 Data Centre located at Steeles Tech Campus in Toronto. The Ontario government unveiled a new “playbook” that future data centres must adhere to. (Patrick Morrell/CBC)

Ford also clarified that the province “won’t be providing financial incentives to attract investments.”

The province indicated its framework would act as a “key enabler” of its artificial intelligence (AI) strategy, which is anticipated to generate economic benefits amounting to $122 billion by 2035 along with creating 17,000 new jobs each year.

This announcement comes as municipalities throughout the province consider moratoriums on data centres; Oakville voted for a one-year moratorium on Tuesday while Mississauga plans to vote on its own moratorium in September.

‘Playbook falls short’: Ontario Greens

Last week, Green Party leader Mike Schreiner urged for a halt on new data centres. He expressed concerns about how corporations benefit from local water resources instead of Ontario communities.

Ilham Abdulkadir from Wellington Water Watchers joined Schreiner’s call, pointing out that infrastructure supporting these data centres is “largely physical” due to their need for land and energy along with an “enormous thirst for water.”

In Toronto, over 5,000 residents have signed petitions expressing worries about data centres being built in their neighborhoods.

Vic Fedeli, Ontario’s minister of economic development, assured that the province would “prioritize those data centres using a closed loop system.”

A closed loop system operates like a car radiator by reusing water which helps minimize water use.

Ford echoed this sentiment saying his administration will focus on developments with closed loop systems that use nearly no water during operations.

“I think people need to understand more about data centres,” the premier stated. “It’s ironic when a municipality says they don’t want a data centre yet all businesses require one. They need AI; my hospital needs AI; everyone living there uses social media or computers. It just doesn’t make sense.”

Green Party leader Mike Schreiner advocates pausing approvals for new AI-related data centres. (Evan Mitsui/CBC)

However, Schreiner believes the playbook “falls short.”

“The premier used vague language filled with reassurances but provided no specifics or strong regulations like banning construction of any non-closed loop water system-equipped facility,” Schreiner shared.

[The Ontario Greens are] going to continue pushing for a moratorium until robust regulations are established protecting communities from these facilities,” he said.....

Schreiner acknowledged recognizing both the necessity of safeguarding personal information and understanding that these facilities are part of our future.“ “But we want residents and communities controlling what happens-not tech billionaires or fossil gas companies,” he added.