Ontario Welcomes Microsoft’s AI Infrastructure Expansion

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Wednesday, April 08, 2026 Economic Development, Job Creation And Trade Ontario Welcomes Microsoft’s AI Infrastructure Expansion News Release April 07, 2026 Investment will strengthen Ontario’s leadership in cloud and AI services, while supporting 1,250 good-paying jobs VAUGHAN — The Ontario government is welcoming a multi-billion-dollar investment from Microsoft, as part of the company’s previously announced $19 billion commitment to 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 Related Topics Business and economy Information about Ontario’s economy and how to do business here. Includes economic development opportunities, research funding, tax credits for business and the Ontario Budget. Learn more Media Contacts Jennifer Cunliffe Minister’s Office jennifer.cunliffe@ontario.ca Media Relations Communications Branch economy.media@ontario.ca
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