{"id":54136,"date":"2026-08-18T16:20:00","date_gmt":"2026-08-18T20:20:00","guid":{"rendered":"https:\/\/www.millerthomson.com\/?p=54136"},"modified":"2026-08-18T16:20:03","modified_gmt":"2026-08-18T20:20:03","slug":"ontarios-data-centre-playbook-what-it-means-for-grid-access","status":"publish","type":"post","link":"https:\/\/www.millerthomson.com\/en\/insights\/technology-ip-and-privacy\/ontarios-data-centre-playbook-what-it-means-for-grid-access\/","title":{"rendered":"Ontario’s data centre playbook: What it means for grid access"},"content":{"rendered":"\n

According to the Ontario Ministry of Energy and Mines, data centre connection applications currently in Ontario’s pipeline could exceed 10,000 MW, roughly 40% of the province’s recent peak electricity demand. Against that background, on August 13, 2026, the Government of Ontario released its Data Centre Playbook<\/a> (the \u201cPlaybook<\/strong>\u201d), a proposed policy framework intended to inform government decisions regarding whether regulated data centres may connect to the provincial electricity grid. It follows the Protect Ontario by Securing Affordable Energy for Generations Act<\/em><\/a> (the \u201cAct<\/strong>\u201d), which received Royal Assent on December 11, 2025, and gives the Ontario government final decision-making power over grid connections by large-load facilities, including data centres. While the Act established the government’s approval authority, the Playbook may foreshadow forthcoming regulations under the Act.<\/p>\n\n\n\n

The Playbook positions grid access as a key provincial lever for governing data centre development, with approval conditioned on economic, community, and digital sovereignty considerations as well as technical feasibility. The proposed framework is an early pillar of Ontario’s forthcoming AI Industrial Strategy, which the government links to $122 billion in economic growth and more than 17,000 new jobs annually.<\/p>\n\n\n\n

What you need to know<\/h2>\n\n\n\n

1. A two-part assessment would govern grid connection approvals<\/h3>\n\n\n\n

The Playbook proposes a two-part assessment for data centres seeking grid connection:<\/p>\n\n\n\n

System impact assessment:<\/strong> Connection feasibility, grid system impacts, full cost recovery, potential grid reinforcements, cost-recovery commitments and on-site generation (“bring your own power”) plans.<\/p>\n\n\n\n

Strategic priority assessment:<\/strong> Economic development, data security, digital sovereignty and community investment, particularly where projects compete for limited electricity capacity or where broader provincial priorities must be considered. It would also inform access to non-financial supports from Ontario.<\/p>\n\n\n\n

2. Data centres would pay the full cost of electricity<\/h3>\n\n\n\n

Data centres would pay full electricity costs, including funding necessary generation and transmission upgrades, so that other ratepayers do not bear them. Separately, Ontario is proposing to establish a new rate class for new data centres above 1 MW, which would not be eligible for the Industrial Conservation Initiative (a peak-demand cost-reduction program for large consumers). Existing data centres already participating in the ICI would be grandfathered. The rate class proposal is separate from the Playbook’s connection approval process.<\/p>\n\n\n\n

3. Economic development and community investment would be expected<\/h3>\n\n\n\n

Across the economic development and community investment pillars, the assessment would consider whether projects:<\/p>\n\n\n\n