Ontario Prioritizes Data Centre Energy Use to Power Digital Growth and Secure Jobs

New measures will connect electricity to projects that create jobs, protect data, and boost Ontario’s economy

Toronto, ON — The Ontario government is implementing bold new measures to ensure the province’s energy resources are strategically used to support digital innovation, job creation, and economic competitiveness. A new plan announced this month will prioritize electricity access for data centres that deliver measurable benefits to Ontarians — including local employment, secure data storage, and alignment with Canada’s digital sovereignty goals.

As demand for artificial intelligence, cloud computing, and data processing grows across the country, Ontario’s Ministry of Energy and Mines is positioning the province as a leader in the digital economy by launching a new integrated energy strategy focused on high-impact, energy-intensive industries.

“These measures will ensure we’re not just plugging in servers — we’re powering Canadian opportunity,” said Minister of Energy and Mines Stephen Lecce. “We’re protecting Canadian data and jobs and making sure energy is used where it delivers real value to our country.”

A Strategic Shift in Grid Access

Under the new Protect Ontario by Securing Affordable Energy for Generations Act, 2025, the province will require large-scale data centres to receive approval before connecting to Ontario’s electricity grid — a major policy shift from the current system, which mandates that utilities approve all connections regardless of economic return or energy demands.

The government estimates that current data centre applications represent the equivalent output of a nuclear plant the size of Bruce Power — more than 6,500 megawatts or nearly 30% of Ontario’s peak demand in 2024. Demand from the digital sector is projected to account for 13% of all new electricity demand in the province by 2035.

Powering the Digital Economy with Clean Energy

The policy shift is part of Energy for Generations, Ontario’s broader clean energy strategy aimed at keeping power affordable and reliable while fueling economic growth. It will give priority to data centres that:

• Create good-paying local jobs

• Store Canadian data domestically

• Advance Ontario’s long-term competitiveness

• Protect against weaker foreign privacy regimes

By directing power toward strategic projects, the government aims to grow the province’s $8 billion data centre market — already one of the top ten globally — while preserving energy capacity for other high-demand sectors, including manufacturing.

“As we experience increasing energy demands — not only from our energy-intensive industries but also from new investment — we must ensure we’re prioritizing projects that create good jobs and keep Ontario competitive,” said Associate Minister Sam Oosterhoff.

A Safe and Growing Market

Canada ranks second globally on the National Cyber Security Index, making it an attractive destination for secure, reliable data centre development. The new policy is expected to accelerate this growth by offering clarity and certainty to investors, municipalities, and Indigenous communities across Ontario.

The initiative also builds on the government’s 2024 energy vision paper, Ontario’s Affordable Energy Future, which gathered over 130 public and stakeholder submissions calling for a smarter and more secure electricity system.

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