Ontario’s Potential as a Global Powerhouse for Data Centers

What Are Data Centers and Why Do They Need So Much Power?

Data centers are specialized facilities that house vast numbers of servers and networking equipment to store, process, and transmit digital information. These centers are essential for the operation of the internet, cloud computing, and modern business applications. Their immense power requirements stem from the need to run high-performance servers 24/7, maintain advanced cooling systems to prevent overheating, and ensure uninterrupted operations through redundant power systems. As the demand for data-driven services grows, so too does the need for facilities with reliable, high-capacity power supplies.

Ontario’s Data Center Landscape and Power Capabilities

Ontario offers several advantages for data center development, including geographic stability, a cool climate that reduces cooling costs, and access to clean energy from Ontario Hydro. The province is known for its robust hydroelectric power generation, which contributes significantly to the grid’s overall capacity. According to the Province of Ontario, the electricity system is capable of generating approximately 36,000 megawatts (MW) at peak capacity, with hydroelectric power accounting for roughly 25% of this total.

High-voltage transmission lines ensure efficient energy distribution, operating at 500 kV, 230 kV, or 115 kV, depending on the distance and electricity load requirements. While commonly referred to as “Hydro Lines,” these power lines often carry electricity that integrates into Ontario’s broader energy grid, blending hydroelectric power with electricity from nuclear, natural gas, wind, and solar sources. This diversified and reliable energy infrastructure makes Ontario a prime location for data centers that demand stable and sustainable power solutions.

Data Centers in the U.S.A 

In the United States, data centers benefit from significant power availability, often reaching up to 100 MW per facility in leading markets like Virginia’s ‘Data Center Alley,’ Texas, and Arizona. These regions offer abundant electricity and strategic infrastructure, enabling hyperscale operations for global tech giants. The combination of energy resources, connectivity, and supportive policies has positioned the U.S. as a global leader in data center deployment and innovation.