Ontario government unveiled a "data centre playbook" on Thursday, laying out criteria for firms that want to locate high‑capacity computing hubs in the province. The move follows a wave of municipal pauses on data centre projects over worries about water use, noise and zoning.
Provincial playbook and political debate
At a news conference in Guelph, Premier Doug Ford said Ontarians are "misinformed" about the negative effects of data centres. "People need to learn a lot more about data centres," he told reporters. "You cannot simply say, I don't want it in my backyard, when we will use that power and information to run the community."
NDP MPP Chris Glover, the opposition's technology and innovation critic, called the concerns "legitimate". He warned that while jobs and digital sovereignty are desirable, higher water and utility bills, environmental damage and job losses are not. "The government needs a regulatory framework and transparency so we know what we are getting," he said.
University of Toronto associate professor Evan Light reminded the audience that locating a data centre in Canada does not guarantee that data stays within the country. "A lot of internet infrastructure routes through the United States," he explained. "American‑owned facilities are still subject to the Patriot Act, which allows access without notifying Canadians."
Ford defended the push for more data centres as a matter of digital sovereignty, arguing Canada must build its own capacity rather than rely on foreign providers. He said the playbook does not include subsidies; projects will be judged on the benefits they bring to local communities. The premier also said the province will give priority to proposals that use a closed loop water system, recycling cooling water on site.
Municipal responses across the province
Local governments have taken divergent paths. Earlier this week, Oakville became the first Ontario city to vote for a pause on AI data centre development. In July, Mississauga adopted an interim control bylaw that imposes a one year moratorium on new builds, with a further vote scheduled for September.
Other municipalities have moved forward. A hyperscale facility near Vaughan is nearing completion, while Hamilton rejected a motion to pause development, signalling a more welcoming stance.
When asked whether he would intervene in a reluctant municipality, Ford said he would meet with the mayor and council and consult the community, but he would prefer to work with a willing host.
Analysts note that data centres generate few long term jobs. After construction, they operate with a small technical staff while the computers perform most of the work. The provincial playbook's emphasis on community benefits and sustainable cooling reflects an attempt to balance economic attraction with local concerns.
Based on reporting by Global News.