Ontario introducing legislation to connect data centres to energy more easily
Ontario is introducing legislation that will allow the agency that manages the province's energy grid to prioritize projects — including data centres — that meet economic growth criteria, among other changes.
On Tuesday, Minister of Energy and Mines Stephen Lecce unveiled new legislation he said would support the growth of the province's energy sector.
The proposed Protect Ontario by Securing Affordable Energy for Generations Act includes clauses to allow the Independent Electricity System Operator to prioritize certain projects for connection to the grid, lean into made-in-Canada energy technology for security and increase the emphasis on hydrogen.
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'As global competition intensifies, energy demand surges, and affordability becomes more important than ever, Ontario isn't standing still — we're stepping up,' Lecce said in a statement.
The government is particularly pointing to the emergence of data centres — large computing buildings that store cloud information and manage artificial intelligence operations — as a reason for the tweak.
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Currently, all projects are connected to the grid with equal importance, according to the government. The tweak would allow the IESO to prioritize projects of economic importance, like data centres.
The government's calculations show 6,500 megawatts of power is currently needed for data centres. The figure is equivalent to 30 per cent of peak demand for the province.
'That's a ton of power,' Lecce said. 'That's three Pickerings, that's almost two Darlingtons of power just for data centres.'
The proposed legislation would remove the non-discriminatory clause that governs Ontario's grid.
The law is not expected to pass until after the legislature returns in the fall.
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