Ontario is laying out a new framework for the growing number of data centres looking to set up operations in the province, as demand for artificial intelligence technology continues to drive up electricity needs.
Premier Doug Ford announced what the government is calling a data centre “playbook” Thursday, saying the facilities will be required to cover the costs associated with their electricity consumption.
Ford says data centres could also be placed in a separate electricity rate class, potentially requiring them to pay more for power than other large industrial users.
The province says it will not offer financial incentives to attract data centre projects.
Ontario has seen a major increase in requests from data centres looking to connect to the electricity grid. The Independent Electricity System Operator says there are currently about 7,000 megawatts worth of data centre-related requests, more than double the amount reported in March.
For comparison, Ontario’s peak electricity demand is roughly 25,000 megawatts, although the IESO notes many projects are still in their early stages and some may never move forward.
Under the proposed framework, data centres would also be expected to minimize their environmental impacts, including through measures such as closed-loop cooling systems that recycle water.
The province says communities hosting the facilities should also see local benefits, potentially including investments in parks, roads and community centres.
Data centres will also be encouraged to generate some of their own electricity rather than relying entirely on Ontario’s power grid.
The framework comes as municipalities raise concerns about the rapid growth of the industry.
The provincial framework is now open for public consultation for 30 days.
