Hey there,
Somehow it’s September already. In this week’s issue, we look at Canada’s new framework (i.e. bullet points) for data centre development. The feds laid out a voluntary framework but the provinces are already writing the rules that decide project approvals. We look at the emerging landscape and what it does - or doesn’t - say about clean energy growth.
Elsewhere in climate tech:
Cyclic Materials tops up with $75M to scale rare earth infrastructure
SenseNet acquires US competitor N5 Sensors
Canada releases its latest climate outlook
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Canada launches data centre framework as provinces write their own rules
Credit: İsmail Enes Ayhan
What happened: Canada's data centre policy is starting to take shape. The feds laid out a new framework for data centre development last week as provinces put forward their own visions for the industry.
The details: The new framework asks developers to cover their own electricity costs, minimize water use, and deliver local benefits. It's entirely voluntary, with no penalties.
OpenAI, Anthropic, Google and nearly two dozen other AI and data centre companies have signed on.
What's the context: Provinces and municipalities are actually responsible for data centre approvals and regulation, and are already moving.
Saskatchewan wants new projects to self-supply power and be Canadian-owned.
Alberta sets the same self-supply rule for projects above 75 MW - but sets a bar for reliability that only gas generation passes - effectively locking out renewables.
Ontario's new playbook will make developers cover their own electricity costs and also encourages bringing their own power.
Quebec added higher electricity rates for data centres this year, while B.C. is allocating from a 400 MW block through a competitive bidding process.
Why it matters: More than $100 billion in data centre investment is already in Canada's pipeline. That number could grow as Texas, one of the hottest US data centre markets, hits pause, and public backlash slows projects south of the border.
Policies are starting to converge on a set of principles: economic impact, considering local impacts like water and sound, and making developers bring their own power or cover the costs.
Missing from the picture? Any emphasis on emissions or rules that actually guide developers toward low-carbon power. That gap could see projects defaulting to fossil gas, and locking in decades of emissions.
Not so simple:
Provincial rules are still being finalized, with the final wording up in the air
Project approvals often run through municipal councils with limited capacity and domain knowledge
The bottom line: Canada's framework sets a direction, but provinces and municipalities are writing the rules that actually matter. Done right - and with teeth - they can turn GWs of data centre demand into a pipeline of low-carbon power.
Cyclic Materials (Toronto, ON) raised US$75 million to scale its rare earth recycling infrastructure across the US, increasing domestic production capacity for rare earths and critical minerals.
BlackTech Capital announced the first close of its $2 million fund to back underrepresented entrepreneurs in cleantech.
Magna, a Canadian autoparts manufacturer, invested $35 million in India's battery-swapping startup Yuma Energy. Magna is betting on battery swapping as an unlock for EV adoption in India's gig economy.
Ballard Power Systems closed its acquisition of GeoPura, creating a vertically integrated hydrogen fuel cell business across with production, distribution, and energy-as-a-service.
SenseNet acquired US-based N5 Sensors, expanding SenseNet's technology platform and US presence.
HTEC opened Canada's first commercial hydrogen refueling station in British Columbia supporting a pilot deployment of 12 heavy-duty electric fuel cell trucks.
Neo Battery Materials secured a direct supply deal from the South Korean Army for drone battery packs.
Vancouver's Stardust Solar entered the Quebec market driven by Hydro-Quebec's solar incentives that cover up to 40% of project costs.
RBC launched the RBC Community Solar Program, purchasing renewable energy certificates from community solar projects over a 10-year period.
Variablegrid partnered with Kia Canada to offer a $0.10/kWh incentive for at-home charging, funded by Clean Fuel Regulations credits.
Prodigy Clean Energy announced plans for a 50MW small modular reactor pilot in New Brunswick to validate its commercial model for floating SMRs.
Getting warmer: Canada is on track to warm by at least 3.5 C by 2100 according to a new report by the federal government. Current policies could lead to as much as 5 C. The report also draws a clear link between warming temperatures and more extreme weather, including wildfires.
Charging highway: Plans for a zero-emission charging and hydrogen corridor along North America's west coast are underway. B.C., western US states, and Mexico's Baja California state are partnering on the 2,222 km freight corridor.
Friendly takeover: BYD is considering taking over an idled Stellantis plant in Ontario to manufacture buses. BYD has also looked at taking over Stellantis plants in Europe as it looks to meet EV demand.
EV uptick: Canadian sales of electric buses nearly doubled last year, the second best growth numbers in the world. Sales jumped 188% in 2025, but still represent just 1% of the overall fleet.
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