Letter to the Editor

Texas Is Hitting Pause on Data Centres. Why Is Doug Ford Racing Ahead?

Texas and Ontario do not agree on much when it comes to energy policy.
But on data centres, Texas is showing something Ontario’s government seems unwilling to show: caution.
On August 3, Texas Governor Greg Abbott ordered a pause on new data-centre approvals pending a review of their impact on the state’s electricity grid, water supplies, tax incentives and local communities.
This is Texas, not a bastion of anti-development activism. Yet even one of North America’s most business-friendly jurisdictions has decided that before committing vast amounts of electricity to global technology companies, it should first understand the consequences.
Ontario should be doing the same.
Instead, Premier Doug Ford is barrelling ahead in the opposite direction.
Last week, the province unveiled legislation designed to fast-track the construction of hyperscale data centres across Ontario, including proposals that would give Queen’s Park the final word over municipal objections.
According to Premier Ford, concerns about data centres are based on “misinformation”.
But the concerns Ontarians are raising are neither radical nor unreasonable.
Families are worried about electricity bills.
Farmers are worried about losing productive land.
Municipalities are worried about water use, noise, and an AI bubble bursting.
Workers are wondering whether artificial intelligence will eliminate more jobs than these facilities create.
And taxpayers are asking a simple question: if Ontario is going to dedicate enormous amounts of land, electricity and public infrastructure to some of the world’s wealthiest corporations, what exactly do ordinary Ontarians get in return?
Those questions deserve answers before approvals are handed out, not afterward.
Data centres are not inherently bad. Digital infrastructure is important. Ontario should compete for investment and innovation.
But growth should happen on Ontario’s terms, not Big Tech’s.
That means following four simple principles.
First, communities must have the right to say no.
Municipal governments understand their communities better than Queen’s Park.
If a municipality wants a data centre and believes the benefits outweigh the costs, it should be able to welcome one.
If it doesn’t, that decision should be respected.
The province should adopt a clear willing-host principle: no willing municipality, no project.
Doug Ford often speaks about respecting local communities. Here’s an opportunity to prove it.
Second, data centres must pay the full cost of their electricity demand.
Ontario’s electricity system is already under severe pressure.
The last thing families need is higher hydro bills because global technology corporations have plugged massive new loads into the grid.
The principle should be straightforward: data centres should fund the low carbon generation, transmission and storage capacity required to serve them. 
It is not enough for data-centre companies to pay the cost of connecting to the grid, as Premier Ford is proposing. 
That may cover the wires and equipment required to connect the facility, but it leaves rate payers on the hook for the cost of adding enormous new demand to the system.
Ontario households should not subsidize the AI ambitions of Amazon, Google or Microsoft.
If data centres are truly an economic opportunity, they should strengthen Ontario’s low carbon electricity system, not strain it.
Third, Ontario’s power should serve Ontario’s interests.
Not every data centre creates the same value.
A facility that supports Canadian businesses, universities, hospitals, public services or research provides broad economic benefits.
A facility devoted primarily to training foreign-owned AI systems warrants closer scrutiny.
Ontario’s electricity supply is a strategic asset. Every megawatt dedicated to a data centre is a megawatt that cannot be used elsewhere.
When power is scarce, the public interest should come first.
The key question is not whether a project can be built, but whether it should be built.
Fourth, communities deserve a fair deal.
No small municipality should be forced to negotiate with Microsoft, Amazon or Google and their teams of lawyers, engineers and lobbyists.
Ontario should establish province-wide standards for community benefits, infrastructure contributions, environmental monitoring, noise mitigation, workforce training and local economic development.
Every proposal should also undergo a public cost-benefit assessment.
How much electricity will it consume?
How many jobs will it create?
What infrastructure upgrades will be required? Who pays for them?
How much revenue remains in Ontario?
Taxpayers deserve to know.
The Bottom Line
The real issue here is not technology.
It’s common sense.
Texas has concluded that before approving a wave of electricity-hungry data centres, government should ask hard questions.
Ontario should do the same.
Doug Ford wants Ontarians to believe the choice is between embracing data centres and falling behind.
That is a false choice.
We can support innovation without writing Big Tech a blank cheque.
We can attract investment without driving up hydro bills.
We can build digital infrastructure without sidelining local democracy.
And we can welcome economic growth while insisting that it actually benefits the people who live here.
That’s not anti-development.

It’s just good government.

Luke Hildebrand
Northern Co-Chair
President Kenora—Rainy River Ontario New Democratic Party
Co-President Kenora—Kiiwetinoong New Democratic Party