Thank you, Madam Chair.
I apologize for not being there in person today. The travel gods were not with the people of Toronto this morning.
At Ontario Power Generation, or OPG, we see significant potential for AI to drive growth and innovation across Canada. What I hope to contribute today, though, is the perspective of an actual electricity generator, highlighting what's required from our energy sector to support this ambition.
Similar to some of the comments mentioned by the other panellists, no AI strategy can succeed without clean and dependable around-the-clock power. We see this lesson playing out globally today in many jurisdictions in the United States, for example. The rapid rise of AI and data centres has led to a huge surge in natural gas generation, locking in higher emissions across the United States.
Now, tech giants are looking for cleaner solutions and are turning to things like nuclear power. We've seen Google and NextEra trying to restart the Duane Arnold nuclear plant. Meta and Constellation are extending the life of the Clinton Clean Energy Center. Microsoft and Constellation have an agreement to reopen Three Mile Island unit 1. These are decisions that reflect a growing recognition that clean baseload or 24-7 power is a foundation of AI.
Ontario already has what others are scrambling to build—a grid that's over 80% non-emitting, primarily powered by nuclear and hydro—positioning us and Canada to lead in the global AI economy. Seizing this opportunity requires significant proactive planning and decisive action.
As one of North America's largest electricity generators and the operator of a major nuclear fleet, OPG is preparing to support more energy-intensive sectors, including AI. This challenge is pretty significant. As an example, Ontario's peak electricity demand last year was 24,000 megawatts, and Ontario's Independent Electricity System Operator projects a 65% increase in electricity need by 2050.
A major driver of this growth is the rapid expansion of data centres. Unlike traditional industry, data centre loads arrive in massive increments. While a mine or auto plant in Ontario might peak at 400 megawatts, individual data centres proposed in the United States are coming in at up to 1,000 megawatts each, nearly two and a half times larger and much faster.
In Ontario, the IESO projects that data centres alone will require about 1,600 megawatts by 2040, nearly double the output of two of our Darlington units, or enough to power 1.6 million homes. Globally, the International Energy Agency estimates that 10% of electricity demand growth over the next five years will come from AI data centres. While there's uncertainty around exactly where and when this demand will materialize, we know that baseload nuclear and hydro are well suited to meet this demand.
With the support and foresight of the Ontario government, at OPG we're already taking action. At Darlington nuclear, we're building Canada's first small modular reactor, adding 300 megawatts by 2030, leading the G7, with three other units to follow that one. We're refurbishing Pickering nuclear, returning 2,200 megawatts to the grid in the mid-2030s.
Early planning is already under way for a large nuclear at Wesleyville, and we're exploring two new generation opportunities at former coal sites at Lambton and Nanticoke, in southwestern Ontario. In northern Ontario, we're partners with the Moose Cree and TTN in assessing new hydro opportunities in the Moose River Basin, which could add another 430 megawatts.
With long lead times for nuclear and hydro projects—often a decade or more—it's essential to advance planning today, as well as engagement and regulatory processes now, so that these projects are ready when and where the demand materializes.
Early federal support so far has been instrumental. Investment tax credits, low-cost financing from the Canada Infrastructure Bank and support for indigenous participation have enabled real progress so far. As we continue to advance large, long-lead projects, ongoing partnerships with the federal government will be essential to getting these projects completed.
By learning from other jurisdictions and building new partnerships, we can ensure data centres become an asset, both to Canada and to Ontario, providing the load certainty that helps de-risk major energy investments and protect ratepayers.
As Canada advances its digital and AI ambitions, we look forward to continued collaboration with the federal government and neighbouring provinces, especially as we seek guidance on the types of data centres and the amount of compute power that will be needed to support these key sectors. With a strong track record in clean power, nuclear innovation and major project delivery, OPG is ready and willing to help power the next generation of AI and, in turn, Canada’s future economic growth.
Thank you.