Ontario Premier Doug Ford announced the province’s new data centre framework Thursday, saying it will “ensure Canadians’ data remains in Canada.”

The framework bases data centre approvals on three pillars, namely economic development, data protection and sovereignty and community investment and public confidence.

“Through our new data centre playbook, our government is choosing to build the economy of the future that generate billions in economic growth, increase tax revenues and create thousands of new jobs, while ensuring data centres operate by the rate rules,” Ford said during the announcement in Guelph.

“Our framework will ensure data centres cover the full cost of their electricity usage, encouraging projects to build their own power generation and establishing a separate rate class for large new data centres that is higher than the existing industrial rate programs for major electricity users. No costs are passed on to the hard-working Ontario families.”

Ford also said the province “will not be offering financial incentives to attract investments.”

The province said its framework will serve as a “key enabler” of its artificial intelligence (AI) strategy, which is expected to produce economic benefits including $122 billion in economic growth by 2035 as well as the creation of 17,000 new jobs annually.

The announcement comes as municipalities across the province deliberate about moratoriums on data centres, with Oakville voting to enact a one-year moratorium Tuesday and Mississauga set to vote on its own moratorium in September. 

Playbook ‘falls short’: Ontario Greens

Last week, Green Party of Ontario leader Mike Schreiner called for a pause on data centres. One of his concerns was how corporations are the ones benefiting from local water instead of Ontario communities.

Ilham Abdulkadir of the group Wellington Water Watchers joined Schreiner in his call, stating that the infrastructure behind these data centres are “largely physical” as they require the use of land and energy along with an “enormous thirst for water.”

In Toronto, more than 5,000 residents have signed petitions over concerns about data centres in their communities.

Vic Fedeli, Ontario’s minister of economic development, said the province will “make certain [to] give priority to the data centres that use a closed loop system.” 

A closed loop system works similarly to a car radiator, which reuses water to reduce water consumption. 

Ford seconded this, saying his government will be “prioritizing builds with closed loop systems that use virtually no water during operations.”

“I think people have to learn a lot more about data centres,” the premier said. “It’s ironic that a municipality says, ‘I don’t want a data centre, but all my businesses need a data centre. They need AI. My hospital needs AI and everyone that lives in that community uses social media, uses computers.’ It doesn’t add up.”

But Schreiner thinks the playbook “falls short.”

“The premier used a lot of abstract language and reassuring language. They provided no details, no specifics, no strong regulations like saying you won’t be allowed to build a data centre in Ontario if you don’t use a closed loop water system,” Schreiner told CBC News.

“So until those kinds of protections are in place and Ontario Greens are saying no new data centres.”

Schreiner said he recognizes the importance of data protection and sovereignty and the reality that data centres is “going to be part of our future.”

“But we want to make sure people and communities are in control, not tech billionaires and fossil gas giants,” he said.

“[The Ontario Greens are] going to continue to call for a moratorium until strong regulations are in place to protect people and communities from data centres.”

Waterloo region looking at local impacts

Earlier this week, Coun. Colleen James tabled a motion asking staff to prepare an information report for Region of Waterloo council that would help inform elected officials about how data centres are developed, as well as their economic and environmental impacts. 

James said that the expansion of data centres is “not going away” and that there’s a lot that needs to be learned. 

Wilmot Mayor Natasha Salonen has raised concerns over the staffing resources required to draft a report of said scope, but CAO Darshpreet Bhatti said staff are already “working on a plan that would capture many of the requests being made.”

“It’s not about money. It’s about community. Community safeguards, frameworks, what’s in place,” James said.

The report is expected to be completed early next year.