The Ontario government launched a framework Wednesday for its Data Centre Playbook, an initiative it says will attract data centre investment while ensuring the province’s electricity ratepayers don’t foot the bill for the power-hungry facilities.
The framework is billed as an early piece of the province’s forthcoming artificial intelligence strategy, which the government says could generate $122 billion in economic growth by 2035 and create more than 17,000 new jobs annually.
“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,” Premier Doug Ford said in a statement.
“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.”
Under the Protect Ontario by Securing Affordable Energy for Generations Act, the province gave the Minister of Energy and Mines final say over which large-load facilities, including data centres, can connect to Ontario’s electricity grid.
The Playbook is built around three pillars: advancing economic development, protecting data security and digital sovereignty, and investing in host communities. The government said it will only offer non-financial support to attract data centre projects, pointing to Ontario’s clean electricity system, available land, cool climate and skilled workforce as existing draws.
To keep costs off households, the province is proposing a separate electricity rate class for large new data centres. Under the plan, new facilities larger than one megawatt would pay a higher rate than the industrial rate program currently applied to large electricity users, and projects would be encouraged to build their own power generation.
The government also said it will prioritize data centres with closed-loop cooling systems that use virtually no water during operation, and will hold projects to Ontario’s environmental standards on water use 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,” said 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.”
Energy Minister Stephen Lecce said the plan is designed to shield families from added costs.
“We have designed a system that protects families and ensures data centres pay for complete cost of power — every single cent. To make this point, Ontario will be introducing a new higher electricity rate for data centres, in addition to prioritization for projects that generate their own power. While we work to attract investment and store Canadian data on Canadian soil, we have strong guidelines that safeguard families every step of the way.”
Stephen Crawford, Minister of Public and Business Service Delivery and Procurement, said the framework builds on the province’s broader digital strategy.
“The Data Centre Playbook is another important step in strengthening Ontario’s position as a global technology leader. It builds on our work to strengthen digital trust and protect data security, while attracting the investments that will help drive Ontario’s future growth.”
Sam Oosterhoff, Associate Minister of Energy-Intensive Industries, said the framework fits into the province’s wider energy buildout.
“As part of our generational buildout of Ontario’s energy system, we’re attracting the best talent in the world to support digital infrastructure growth across the province. Combined with our integrated energy plan, the Data Centre Playbook will ensure that we are powering the energy needs of value-adding data centres that directly support our communities, economy and job creation while protecting ratepayers and the people of Ontario.”
The government said Ontario is home to one of the most concentrated technology clusters in North America, with nearly 450,000 tech workers at 26,000 businesses, including more than 1,600 AI-related companies. It said the province has secured tens of billions of dollars in technology investment since 2018 in sectors such as AI, fintech, cybersecurity and quantum technologies.
The public can weigh in on the proposed framework through the Environmental Registry of Ontario and the Ontario Regulatory Registry during a 30-day comment period that began Wednesday. The government said feedback will help shape a final version of the Data Centre Playbook, which is expected to support a broader AI Industrial Strategy aimed at attracting investment, supporting workers, protecting intellectual property and building infrastructure.
