• New data centres would have to cover their full electricity costs, while Ontario says it will offer no financial incentives
  • The draft framework adds economic development, data sovereignty and community benefit tests alongside technical grid assessments

The Fact

Ontario Premier Doug Ford said the province should support more data-centre development to keep sensitive Canadian information under Canadian control. Speaking at the Association of Municipalities of Ontario conference in Ottawa, Ford said Ontario would only advance projects that strengthen control over sensitive data and deliver economic and community benefits. He cited the risk of Canadian data being stored in the United States, including under the administration of President Donald Trump.

Ford's comments follow Ontario's draft Data Centre Playbook, released on 13 August. The proposal would add a Strategic Priority Assessment for large new data centres seeking approval to connect to the electricity grid. Projects would be assessed on economic development, data security and digital sovereignty, and community investment and public confidence. A separate System Impact Assessment would examine connection feasibility, grid impacts and cost recovery.

Ford said new data centres would cover the full cost of their electricity use and that Ontario would offer no financial incentives. He also said projects would have to meet provincial standards on water use and noise. Public consultation on the draft framework remains open until 12 September.

The assessment

Ontario's draft would add another gate to large data-centre grid connections. Even if the IESO finds that the electricity system can support a project, the province could still assess its economic contribution, data-sovereignty arrangements and benefits to host communities before approving the connection.

For developers, a technically viable grid connection may therefore not be enough to secure approval. Projects would also be judged on how they handle sensitive data and what they contribute locally. The draft has not yet set the final size threshold, scoring method or detailed evidence requirements, so it remains unclear how much those criteria will affect individual decisions.

For BTW readers, grid capacity would no longer settle the approval question on its own. If the framework is adopted, a technically feasible project would also have to satisfy Ontario's strategic criteria before it can connect. The first approvals under the final rules will show how much those criteria influence which projects move forward.

What to watch

Public consultation closes on 12 September. Watch for the final size threshold, the evidence Ontario requires on data sovereignty and how the province weighs the three strategic criteria. The first approvals under the framework will show whether those factors materially affect which technically feasible projects are allowed to connect.