Ontario launches Data Centre Playbook to drive economic growth

The Ontario government has launched a framework for its Data Centre Playbook, helping the province attract the best data centre investments for economic growth.

This will ensure Canadians’ data remains in the country and delivers significant and meaningful benefits to local communities. 

The framework will also ensure data centres pay the full cost of electricity, with the government only offering non-financial support to attract investments. 

This playbook acts as an early initiative of Ontario’s forthcoming AI strategy to leverage the economic opportunities AI adoption will bring.

This includes generating $122 billion in economic growth by 2035 and creating over 17,000 new jobs every year.

“Ontario has a choice: we can build the economy of the future and ensure Canadians’ data remains in Canada or we can get left behind and risk Canadians’ data being sent to the U.S. and elsewhere,” says Premier Doug Ford. 

“Through our new Data Centre Playbook, our government is choosing to build the economy of the future to generate billions in economic growth and create thousands of new jobs, while ensuring new data centres play by the right rules and pay the full cost of electricity.”

“We have never raised a tax. We will never raise a tax. We have done the total opposite. We’re saving families and businesses $12 billion each and every single year,” Ford says.

Under the Protect Ontario by Securing Affordable Energy for Generations Act, provincial ministers now have the final say on which large-load facilities, including data centres, can connect to Ontario’s power grid.

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The Playbook is anchored in three pillars to guide approvals for new data centres by advancing economic development, protecting data security and investing in communities to drive local infrastructure developments, job creation and training and future economic growth.

The province will only offer non-financial support to attract data centre investments, leveraging Ontario’s existing strategic advantages such as a clean and reliable electricity system, ample land space, cool climate and skilled workforce. 

Data centres will also pay for the cost of their impact on the electricity system, ensuring people’s electricity bills are not increased. 

New data centres above one megawatt in size will pay a higher rate than the industrial rate program for large electricity users, with more modern data centre technology now available.

Ontario will only advance data centre projects that meet the province’s strict environmental standards around water consumption and noise.

“As demand for digital infrastructure continues to grow at an unprecedented pace, our government is taking bold action to ensure Ontario’s interests remain protected and prioritized,” says Vic Fedeli, minister of economic development, job Creation and trade.

“The Data Centre Playbook will serve as a strategic assessment tool, ensuring that projects looking to break ground in Ontario offer significant economic, security and community benefits.”

On Thursday, the government is asking for public input through the Environmental Registry of Ontario (ERO) and the Ontario Regulatory Registry (ORR) for a 30-day public comment period. 

Public feedback will help finalize Ontario’s Data Centre Playbook.

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