Canada sets framework for responsible data centre development

Canada’s data centre buildout now has a federal set of expectations to go alongside the provincial approaches.

The federal government released its Responsible Data Centre Development Principles, which set out five expectations for projects across the country. Artificial Intelligence and Digital Innovation Minister Evan Solomon announced the framework Thursday in Markham, Ont.

The principles say data centre projects must:

• Create lasting local benefits for communities and Indigenous rights holders. For example, jobs and skills training.
• Avoid shifting electricity costs to Canadians, and they can’t compromise grid reliability. When required, they need to contribute new supply, infrastructure, storage, or demand flexibility.
• Minimize freshwater use and environmental impacts, with priority given to projects that are sustainable, with low-impact technologies and practices.
• Disclose expected local impacts, engaging with impacted local and Indigenous communities early and transparently. Clear, independently verifiable information must be provided.
• Bring what Ottawa calls “strategic value” to Canada.

Twenty-three companies have signed on, including Amazon Web Services, Anthropic, Bell Canada, Cohere, Equinix, Google, Meta, Microsoft, OpenAI, OVHcloud, Telus, and ThinkOn.

Ottawa says Canada relies significantly on infrastructure and services outside the country for the compute, cloud, and data storage that power AI. 

The federal release says more domestic capacity would give Canada greater resilience and choice while helping Canadian researchers, innovators, and businesses build and deploy AI.

The principles arrive after provinces started drawing their own lines around the same projects.

Ontario’s draft Data Centre Playbook proposes higher electricity rates for new data centres using more than one megawatt, along with requirements around local investment and keeping Canadian data in Canada. Saskatchewan went further last week and told new data centre developers to supply their own electricity. Alberta and B.C. have developed different approaches to grid access.

Ottawa says its principles are meant to “complement” provincial, territorial, municipal, and Indigenous regulatory processes. 

“These principles set a clear national standard,” says Solomon. “If you build in Canada, you must build responsibly and transparently and you must build for Canadians.”

Data centre approvals remain local decisions, and municipalities have good reason to want more information. 

A July Leger survey found 46% called AI data centre development in Canada a good thing and 37% called it a bad thing. Support narrowed when people were asked about projects in their own province, with 44% in favour and 42% opposed.

“No two data centre projects are alike, nor will they have the same impact. Municipal leaders need clear and complete information to make informed decisions,” says Tim Tierney, president of the Federation of Canadian Municipalities, in a statement.

Ottawa has created a national framework of expectations. Provinces and municipalities still decide what gets built, where it goes, and what developers have to do before anyone turns on the power.

Final shots

• Canada now has a framework of five common expectations for data centre development, with 23 technology and infrastructure companies signed on.
• Provincial rules still determine practical questions such as electricity access, pricing, ownership, and approvals.