CALGARY — A new Pembina Institute report, From Principles to Practice: Making data centre development work for Canadians, outlines how governments, regulators, utilities, municipalities, Indigenous rights holders and host communities can translate Canada's Responsible Data Centre Development Principles into practical actions that protect electricity customers, support communities, strengthen Canada's economy and minimize environmental impacts.
As Canada works to attract major investment, the question is not whether new data centres will be built, but how they will be built. As demand for artificial intelligence, cloud computing and digital services grows, so does demand for data centre infrastructure.
Canada has already identified what responsible data centre development should achieve. The next challenge is ensuring projects create lasting local benefits, pay their own way, minimize environmental impacts, remain accountable for their commitments and deliver strategic value to Canada. The report argues that moving from principles to action will determine whether data centre growth works for Canadians. This will be critical for the government to build public trust around data centre development.
Canada's Responsible Data Centre Development Principles provide a common starting point. The new framework calls on projects to create lasting local benefits, avoid shifting electricity costs onto households, minimize water use and environmental impacts, be transparent about local impacts, and deliver strategic value to Canada.
This report recommends that provinces and territories use the federal principles as a shared foundation while adapting implementation to local circumstances and electricity systems, turning national principles into practical requirements that deliver lasting benefits for Canadians.
No single principle is enough on its own. Provinces and territories should not develop or implement the five principles in isolation. Data centre projects should be assessed as a whole, with implementation approaches designed to advance several principles at the same time.
Key recommendations
- Ensure projects create lasting local benefits through jobs, workforce development, local and Indigenous procurement, tax revenues and community investments.
- Protect electricity customers and taxpayers by requiring projects to pay the costs they create and by reducing the need for new utility infrastructure wherever possible.
- Minimize environmental impacts through energy efficiency, responsible water management and low-emissions electricity.
- Improve transparency and accountability through clear reporting, community engagement and enforceable commitments.
- Ensure projects deliver strategic value by expanding Canada's digital capacity, strengthening digital resilience and supporting Canadian expertise and supply chains.
The report also emphasizes the importance of focusing on outcomes rather than prescribing specific technologies. Different regions face different circumstances, electricity systems and resource constraints. Clear performance expectations can be delivered through multiple pathways, allowing different approaches to achieve the same objectives.
Quotes
"Canada has established clear principles for responsible data centre development. The next challenge is turning those principles into clear expectations, accountability and practical implementation. Our report outlines how governments can ensure data centre growth delivers real benefits for Canadians."
— Kari Hyde, Director, Customer Energy Solutions, Pembina Institute
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Contact
Sarah Snowdon
Senior Comms Lead, Pembina Institute
647-797-9329
Background
Blog: The data centre energy debate is missing half the story
Report: Footing the bill: How hyperscale data centres could increase electricity bills in Alberta
Media release: Ontario’s new data centre playbook signals right priorities on future development
Submission: What’s the best way to power Alberta’s growing data centre sector?
