ONTARIO WELCOMES MICROSOFT’S AI INFRASTRUCTURE EXPANSION
Investment will strengthen Ontario’s leadership in cloud and AI services, while
supporting 1,250 good-paying jobs
April 07, 2026
Ministry of Economic Development, Job Creation and TradeVAUGHAN — The Ontario government is welcoming a multi-billion-dollar investment
from Microsoft,
as part of the company’s previously announced $19 billion commitmentto Canada. Through this investment, Microsoft is expanding its cloud and
artificial intelligence (AI) infrastructure across Ontario, significantly
scaling up the province’s computing capability while reinforcing Ontario’s
position as a leader in the tech and digital economy. The Ontario-based projects
will also hold considerable economic benefits, supporting 1,000 jobs during the
construction phase and creating 250 new, good-paying jobs once the sites are
operational.
“Strong data infrastructure has long underpinned the success of our provincial
economy, supporting growth in the tech, health care and financial sectors,” said
Vic Fedeli, Minister of Economic Development, Job Creation and Trade. “As demand
for AI, cloud computing and data processing continues to grow, Microsoft’s
investment will ensure companies looking to invest in the province have the
infrastructure they need to stay competitive and meet the moment.”
Over the last ten years, Microsoft’s Azure Canada Central data centre region has
supported the specific needs of Ontario’s leading industries and academic
institutions, including in finance, health care, quantum computing and
government services. This expansion in Ontario will further bolster the
reliability of its data infrastructure to strengthen the province’s domestic
data capacity as more businesses begin to adopt and scale AI technologies.
Through the company’s Community-First approach, Microsoft will also prioritize
alignment with regional economic priorities, including advancing Ontario’s
investment readiness and competitiveness, fostering the conditions for job
creation and apprenticeships and laying the foundation for advanced AI
innovation.
“Cloud and AI infrastructure brings enormous opportunity and we believe everyone
should share in the benefits,” said Matt Milton, President of Microsoft Canada.
“We’re proud to invest in Ontario’s future with a Community-First approach
helping ensure the benefits of AI are realized across the province, creating
jobs and supporting long-term growth.”
Secure data infrastructure already plays a vital role in supporting the
services, businesses and public institutions people across Ontario rely on every
day. As part of the government’s plan to protect Ontario, the province is
embracing the growth of the data centre sector as a strategic opportunity to
drive investment, innovation and job creation. This approach is also grounded in
Ontario’s first-ever integrated energy plan, the province’s strategy to secure
the clean, reliable and affordable power needed to support economic growth in
high-demand sectors like digital technology.
Since 2018, Ontario has attracted over $222 billion in investment and created
one million new jobs. In the face of global uncertainty, the government has
continued to introduce measures to cut the cost of doing business and reduce red
tape, saving businesses $12 billion a year. By fostering the conditions that
encourage companies like Microsoft to strengthen operations, the government is
protecting Ontario’s workers and building a competitive, resilient and
self-reliant economy.
QUICK FACTS
* Ontario has generated tens of billions of dollars in technology investments
since 2020. This includes investments in sectors such as AI, data centres,
fintech, e-commerce, cybersecurity, retail technology, quantum technologies
and advanced networks.
* Ontario produces more than 86,000 STEM graduates annually, including 1,100 AI
master’s graduates, making it one of the most highly skilled workforces in
the world.
* In April 2025, the government announced an investment of $750 million to
expand enrollment in STEM programs at colleges and universities by up to
20,500 seats per year.
* Demand from the data centre industry, which supports data-intensive
applications including AI and cloud computing, is expected to represent 13
per cent of new electricity demand in Ontario by 2035.
* Ontario’s electricity grid is one of the cleanest in the world with a diverse
supply mix that gives us competitive advantage in hosting AI data centres
that are sustainable, energy-efficient and built for the future.
* In December 2025, the government passed Bill 40, the Protect Ontario by
Securing Affordable Energy for Generations Act which allows the government to
prioritize projects that maximize benefit to the Ontario economy and
workforce, including projects that create high-quality jobs and support
domestic data housing – ensuring Canadian data stays on Canadian soil.
* Invest Ontario
has been working closely with Microsoft since 2023, providing non-financial,
strategic assistance, helping to build strong connections with municipal and
economic development partners, as well as navigate planning and site
selection requirements.
* Since inception, Invest Ontario has helped companies announce over $12.4
billion in investments and more than 11,300 jobs across the province.
QUOTES
“Ontario is attracting the right data centers to the province that maximize
economic value, with Microsoft accepting full cost recovery on any required
infrastructure upgrade. This job creating project fulfills an important
government priority — Canadian data will be stored and processed on Canadian
soil. To keep our economy strong and energy reliable, Ontario is doubling down
on Made-In-Canada nuclear power to create 150,000 good-paying jobs and meet
rising electricity demand.”
– Stephen Lecce
Minister of Energy and Mines
“As data becomes increasingly valuable, protecting where it is stored and
controlled is essential. Investments like this support our Protect Ontario
approach by ensuring critical digital infrastructure is built here,
strengthening security and supporting Ontario workers.”
– Stephen Crawford
Minister of Public and Business Service Delivery and Procurement
“Ontario is proud to be at the forefront of Canada’s growing digital economy and
this investment by Microsoft is a clear vote of confidence in the talent and
potential we have right here at home. Our government is building the
infrastructure needed to power innovation and create high-quality local jobs in
Vaughan–Woodbridge and across the province, so we can continue to lead Canada’s
future in artificial intelligence and advanced technology.”
– Michael Tibollo
MPP for Vaughan—Woodbridge
“I applaud Microsoft for choosing to expand their Ontario operations. This
investment will create hundreds of jobs, support our emerging need for increased
secure cloud services and AI computing capacity and strengthen Ontario’s place
as a global leader in AI innovation and infrastructure.”
– Laura Smith
MPP for Thornhill
“We are proud to welcome Microsoft’s investment in data centre infrastructure in
Vaughan. As we continue to build a strong and steady city, this announcement
demonstrates what’s possible when government and the private sector work
together toward shared goals – creating jobs and long-term opportunities for our
residents. I want to thank Microsoft for recognizing the strength of our local
economy and business community. I also want to acknowledge our provincial
partners and Minister Vic Fedeli for their leadership in fostering environments
for major investments.”
– Steven Del Duca
Mayor of Vaughan
“Microsoft’s decision to expand its presence in Ontario with local communities
in mind reflects the strength of what the province offers. Ontario has the
talent, the reliable clean energy and the stability that global tech leaders
need to build cutting edge cloud and AI infrastructure. This Community First
approach to building digital infrastructure will create new jobs, strengthen
digital capacity and drive continued growth in Ontario’s world class technology
ecosystem. At Invest Ontario, we help companies of every size navigate how to
scale their operations and advance their projects efficiently and we are proud
to support Microsoft as it grows its footprint in the province.”
– Khawar Nasim
CEO of Invest Ontario
ADDITIONAL RESOURCES
* 2026 Ontario Budget: A Plan to Protect Ontario
* 2025 Ontario Economic Outlook and Fiscal Review
* Ontario’s Energy Plan Unlocking Opportunities in the Digital Economy
