Ontario’s latest strategy to attract data centers is facing calls for greater transparency from some elected officials in Hamilton and Burlington. Premier Doug Ford introduced a new data center framework aiming to draw investments, generate employment opportunities, and ensure that these facilities cover the full cost of their electricity consumption while benefiting the communities hosting them.
Despite the province’s pledge to safeguard data sovereignty and keep Canadians’ data within Canada, concerns remain. Hamilton Coun. Nrinder Nann expressed reservations about the lack of specifics in the announcement, particularly regarding policy, regulation, noise levels, water extraction, and environmental standards.
The government stipulates that new data centers must adhere to environmental criteria related to water usage and noise levels. Projects utilizing closed-loop cooling systems will be given priority, and centers consuming over one megawatt will incur higher electricity rates than current industrial programs for large energy consumers.
While Nann acknowledged the importance of data centers covering their electricity costs, she emphasized the necessity for enhanced regulations, especially concerning noise, water extraction sources, and environmental standards. The surge in artificial intelligence (AI) development has fueled data center construction, prompting protests across Canada due to concerns over water and energy consumption.
Local leaders in various municipalities, including Hamilton and Burlington, are pushing for specific regulations governing data center projects. Hamilton recently rejected a proposal for a one-year pause on new data center developments to further study regulatory frameworks.
In Burlington, Councillor Lisa Kearns highlighted the importance of project-specific information for residents to comprehend the implications of data center projects in their area. Kearns stressed the significance of data centers covering their electricity costs and how these principles should extend to local infrastructure responsibilities managed by municipalities.
The Ontario government’s data center framework is currently in draft form, with a 30-day public consultation period initiated through the Environmental Registry of Ontario and Ontario Regulatory Registry. Hamilton’s Nann plans to propose an extension to the consultation period at a council meeting in September to ensure adequate input from the public, as many are on summer vacation during the current consultation period. Municipalities seek assurances that provincial decisions will respect and not supersede local regulatory efforts concerning data center development.
