Some elected officials in Hamilton and Burlington are calling for more transparency in Ontario’s new plan to attract data centres. Premier Doug Ford recently introduced a data centre framework aimed at attracting investment and creating jobs while ensuring that data centres cover the full cost of their electricity usage and provide benefits to host communities. The framework also emphasizes safeguarding data sovereignty, ensuring that Canadians’ data remains in Canada.
Hamilton Coun. Nrinder Nann expressed concerns about the lack of detailed policy and regulation in the announcement, stating that while requiring data centres to meet environmental standards, more clarity is needed on issues such as noise, water extraction, and environmental standards. The government stated that new data centres consuming over one megawatt would pay a higher electricity rate and prioritized projects utilizing closed-loop cooling systems.
Nann emphasized the importance of data centres covering their electricity costs but stressed the need for additional regulations. The rapid growth of artificial intelligence (AI) has led to protests across Canada regarding water and energy usage in data centres. Nann and other local leaders are advocating for data centre-specific regulations and have proposed moratoriums on development until such regulations are established.
Hamilton city council rejected a proposed one-year pause on new data centre development, with Nann advocating for stronger rules to be in place before construction in communities. She questioned the province’s job and economic growth promises, seeking clarity on the nature of the jobs created. Burlington Coun. Lisa Kearns echoed the need for clear, project-specific information on proposed data centre projects in the region.
The province has initiated a 30-day public consultation on the draft framework through the Environmental Registry of Ontario and Ontario Regulatory Registry, running from Aug. 13 to Sept. 12. Nann plans to propose extending the consultation period at a September council meeting to ensure adequate input from residents. Municipalities are seeking assurance that provincial decisions will respect local efforts to regulate data centre development.