As demand for artificial intelligence, cloud computing and digital services grows, so does demand for the data centres that power them. These facilities can help strengthen Canada's digital economy, support innovation, attract investment and expand domestic computing capacity. At the same time, they can place significant demands on electricity systems, water resources and local infrastructure.
This report explains how provinces, territories and local decision-makers can translate Canada's Responsible Data Centre Development Principles into clear expectations and measurable outcomes. The principles call on projects to create lasting local benefits, avoid shifting electricity costs onto Canadians, minimize water use and environmental impacts, be transparent about local impacts, and deliver strategic value to Canada.
A roadmap for responsible data centre development
Canada has already identified what responsible data centre development should achieve, but 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 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.
- Building an actionable framework for responsible data centre growth.
The report emphasizes the importance of focusing on outcomes rather than prescribing specific technologies for data centre growth. Clear performance expectations can be combined with multiple pathways, allowing different approaches to achieve the same objectives.
Canada now has a common national direction for responsible data centre growth. The next step is turning that vision into action through clear expectations and practical implementation pathways.
By establishing those expectations, governments can help ensure data centre development supports communities, strengthens Canada's digital economy and contributes to a reliable, affordable and low-carbon electricity system.
