OTTAWA — Premier Doug Ford urged municipal leaders Monday to take a firm role in the development of data centres in Ontario, saying the province cannot afford to let information leave the country and end up under the control of U.S. authorities.
Ford frames data centres as an economic and sovereignty issue
Speaking to delegates at the Association of Municipalities of Ontario conference, the premier described data-centre investment as a “historic opportunity” to generate substantial tax revenue while maintaining custody of Canadians’ information. He warned that failing to build and host these facilities in Ontario could mean data being transferred to servers south of the border.
"That would be the worst thing we could ever do, let President Trump control our data,"
Ford argued the province should be in the position of negotiating with large technology operators rather than competing to attract them with subsidies. He said Ontario will not offer financial incentives to secure data-centre projects and intends to be selective about which developments are approved.
New provincial framework: higher rates, water limits and selection criteria
The provincial government unveiled a framework last week that imposes a new electricity rate class on large data centres, meaning these users will face higher power bills than other industrial consumers. The framework emphasises environmental safeguards, favouring projects that use closed-loop cooling systems that consume virtually no water during operation.
Ford told municipal officials they control local outcomes and should bargain for community benefits — jobs, local investment and protections for residents — when developers seek to build in their jurisdictions.
Municipal pushback and moratoriums
Several municipalities have expressed concern about the scale and resource demands of data centres. Oakville has imposed a one-year moratorium on new data-centre projects, and Mississauga is set to consider a similar pause at council next month. Those local decisions reflect worries about electricity and water consumption, land use, noise, and the pace of change.
Ford cautioned against long-term pauses. He said municipalities need to negotiate vigorously with companies rather than effectively shutting the door.
What the framework would mean in practice
Key elements of the provincial approach include:
- New electricity rate class for large data centres, increasing operating costs relative to other industrial users.
- Environmental preference for projects that limit water use, particularly those using closed-loop cooling systems.
- No provincial financial incentives to attract data-centre developers; the province says it will be selective in choosing projects.
| Policy item | Expected effect |
|---|---|
| Electricity rate class | Higher bills for large facilities |
| Water-use preference | Favour closed-loop, low-water systems |
| No incentives | Province to select projects without subsidies |
Local impact and trade-offs for communities
For Ontario municipalities, data centres present a complex trade-off. They can bring high-paying construction and operations jobs, municipal tax revenue and demand for ancillary services. At the same time, their electrical loads are substantial and, depending on cooling choices, some designs can use large quantities of water — a flashpoint for towns concerned about competing demands from residents and other industries.
Municipalities that pause approvals often cite the need for updated official plans, infrastructure assessments and community consultation. Proponents say those pauses can deter investment or push projects to other jurisdictions.
Province signals both opportunity and caution
Ford struck a dual tone: portraying data centres as an economic prize while underscoring the need to protect information and natural resources. He urged municipalities to use their leverage to ensure projects deliver tangible benefits to communities and to avoid surrendering control of data to foreign jurisdictions.
The premier’s remarks landed as the province seeks to balance enabling high-tech infrastructure with growing public scrutiny of energy use and environmental effects. Ontario is already home to about 100 AI-related facilities, and the new policy marks an attempt to steer future growth toward projects that meet provincial priorities.
How individual municipalities respond — whether by introducing moratoriums, updating planning rules or negotiating community benefit agreements — will determine how quickly and where new data centres are built in the province.
As decisions unfold at the local level, the provincial framework sets the baseline: higher power costs for large facilities, strict water-use expectations and an aversion to offering direct financial inducements.
Local leaders now face the practical task Ford highlighted: decide how to use municipal powers to extract local benefits while keeping critical digital infrastructure within provincial borders.
