Ontario is proposing to put large new data centres into an electricity rate class of their own, and the window to comment on it closes at 11:59 p.m. on Saturday.
The Ministry of Energy and Mines posted the proposal on the Environmental Registry of Ontario on August 13. It would amend Ontario Regulation 429/04 under the Electricity Act, 1998 to establish, in the ministry’s words, a new separate rate class for new data centres above a specific demand threshold. Both the threshold and the class name are given as examples rather than settled numbers — the notice says “e.g., 1 MW” and “e.g., Class C” — so the final shape is still open.
The stated purpose is to ensure growth in the sector does not increase electricity bills for existing customers. Facilities placed in the new class would also not be eligible to participate in the Industrial Conservation Initiative, the program that lets large electricity users cut their global adjustment costs by reducing demand at peak hours.
The scale numbers in the notice explain the urgency. The ministry says roughly 100 to 200 megawatts of data centre load currently takes part in the Industrial Conservation Initiative. Pending data centre connection applications, by contrast, total more than 10,000 megawatts. Ontario’s recent peak demand is about 25,000 megawatts.
The proposal also describes a Data Centre Playbook, which would assess projects against three pillars: economic development and high-quality job creation; data security and digital sovereignty aligned with Canadian interests; and community investment, workforce participation and minimal environmental impact, including closed-loop cooling to limit water use.
The consultation is a proposal at this stage, not a decision. Comments are open until September 12 and go to the ministry contact named on the registry notice.
Source: https://ero.ontario.ca/notice/026-0853, posted August 13, 2026.
