Ontario’s Energy Plan Unlocking Opportunities in the Digital Economy

July 1, 2025

The Ontario government has unveiled a new integrated energy strategy focused on supporting the province’s expanding digital economy—particularly data centres—while safeguarding energy affordability, reliability, and sovereignty.

Key Initiatives

• Prioritized Grid Connections for Data Centres
  • New approvals process ensures electricity is fast‑tracked to data centres that deliver high‑quality jobs, support domestic data hosting, and strengthen Ontario’s tech economy.
• Canadian Data, Secured Locally
  • Enforces domestic data sovereignty by requiring local storage and stronger privacy protections—helping protect Canadian data from weaker foreign regimes.
• Ending Automatic Energy Approvals
  • Through the Protect Ontario by Securing Affordable Energy for Generations Act, 2025, data centres will need explicit approval before connecting to the grid—replacing the previous automatic entitlement for large users.

Ontario’s energy demand is projected to increase by 75% by 2050, driven significantly by data centres and AI development. This plan aligns energy policy with economic ambitions, attracting high-value investment while keeping Canadian data secure and energy costs stable.

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