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Ontario
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Ontario

Canada's most populous province, capital Toronto; nuclear supplies nearly half its electricity.

Ontario opened consultation on 13 August 2026 on a draft Data Centre Playbook that would leave sites above 1 MW carrying every cost they add to the grid, with no cash incentives; the government says the final version follows this autumn.

Last refreshed: 18 October 2026 · Appears in 1 active topic

Key Question

Can Ontario make data centres pay their full grid costs and still win them?

Timeline for Ontario

#16 9 Oct
#14 13 Aug

Opened consultation on a Data Centre Playbook

Data Centres: Boom and Backlash: Ontario would make data centres pay
View full timeline →

Background

Ontario is setting the terms on which data centres may join its grid. Its draft Data Centre Playbook, out for a 30-day consultation from 13 August 2026, would charge sites above 1 MW the full cost of their power and grid upgrades and offer them only non-financial support. Officials propose a separate rate class for data centres, priced above other industrial customers, so household bills do not carry the cost. Ontario's government says the final playbook will follow this autumn alongside its AI Industrial Strategy. It rests on the Protect Ontario by Securing Affordable Energy for Generations Act, which gave the government the final say on which large-load projects connect.

Ontario is Canada's most populous province, with about 16.1 million people in April 2026, and its capital is Toronto. Nuclear produced about 48.2% of its electricity in 2025, according to the grid operator, the Independent Electricity System Operator (IESO).

The IESO forecasts provincial demand to grow 65% by 2050. In its reference scenario Ontario data centres take 8.6% of that demand, a share about three-fifths above its previous forecast. Ontario's no-subsidy line is the opposite of Gujarat's, which in August notified a subsidised policy aimed at 7.5 GW of data-centre capacity. Neighbouring Quebec is also writing a separate data-centre tariff.

Common Questions
What is Ontario's Data Centre Playbook?
A draft provincial framework released for consultation on 13 August 2026. It says data centres must pay the full cost of their electricity and grid upgrades, and that Ontario will offer them only non-financial support.Source: Government of Ontario, Data Centre Playbook backgrounder, 13 August 2026
Why is Ontario proposing to charge data centres their full energy costs?
The province says other ratepayers should not bear the cost of data centres in their area. It argues its clean, reliable grid, land and cool climate are draw enough, so it will compete on value, not incentives.Source: Government of Ontario, Data Centre Playbook backgrounder, 13 August 2026
How would Ontario charge data centres for electricity?
The draft playbook proposes a separate rate class, for example "Class C", for data centres over 1 MW, priced above the Class A and Class B rates other industrial customers pay.Source: McCarthy Tétrault, 17 August 2026
How much of Ontario's electricity will data centres use by 2050?
In the IESO's 2026 Annual Planning Outlook reference scenario, data centres make up 8.6% of Ontario demand in 2050, about 60% higher than its previous forecast. Total demand is forecast to grow 65%.Source: IESO, 2026 Annual Planning Outlook
Where does Ontario get its electricity from?
Mostly nuclear. The IESO says nuclear produced about 48.2% of the province's actual generation in 2025, with hydro making up more than a fifth of generating capacity.Source: IESO, Supply Mix and Generation
Source Material

Written with AI from Lowdown's published reporting. Not individually reviewed by an editor. Updated 18 October 2026. Editorial standards.