The Ontario government announced on Thursday that it is developing a framework for new data centres, responding to a surge of proposals that have led some municipalities to consider temporary bans on such construction. The framework will include a higher electricity rate for large data-centre projects, according to Premier Doug Ford.
Speaking at an event in Toronto, Ford said the province aims to balance the economic benefits of data centres with the strain they place on local infrastructure and electricity grids. The proposed higher rate is intended to reflect the significant power demands of these facilities and to fund grid upgrades.
The announcement comes as several Ontario municipalities, including those in the Greater Toronto Area, have debated moratoriums on new data-centre developments due to concerns about energy capacity and community impact. The province's framework is expected to provide clearer guidelines for approvals and grid connections.
Details on the exact rate increase and the timeline for the framework have not yet been released. The government said it will consult with municipalities, utilities, and industry stakeholders before finalizing the plan.
