(September 21, 2026)

By Guru Gurumurthy, Senior Analyst

Ontario’s data centre framework should make energy a core pillar of its strategy to help grow the sector responsibly, ensure digital sovereignty, and safeguard communities and 
the environment while aligning with Ontario’s economic vision. To provide data centre developers and all businesses with more options to procure energy while supporting the 
affordability and reliability of Ontario’s bulk electricity system, the Government of Ontario should:

• Initiate an energy procurement program to match the scale of data centre build out. New data centre demand could account for 13% of Ontario’s electricity consumption
  by 2035, putting pressure on grid reliability and price escalations for consumers. A substantial and equivalent buildout of new energy supply is necessary to fully enable 
  data centre build out while protecting consumers. 
• Allow data centres to participate in the IESO’s corporate PPA (C-PPA) program. Energy should be expanded from a cost-allocation principle to a distinct core pillar of 
  Ontario’s data centre strategy. The program should also be expanded to include all Class B Industrial Conservation Initiative (ICI) customers to ensure that both data 
  centres and other industries in Ontario can directly procure energy for their operational and environmental goals.
• Allow companies to make use of battery energy storage. The C-PPA regulation O. Reg. 429/04 (June 2025) should be amended to include battery storage. Without 
  battery storage, the program's current structure cannot ensure peak-hour coverage or support a move toward 24/7 power.