Invest Ontario has welcomed plans by Microsoft to expand its Azure Canada Central data-centre region in Ontario.

The move is expected to support 1,250 jobs and strengthen the province’s growing cloud and AI infrastructure, said Invest Ontario.

The expansion comprises part of Microsoft’s previously announced $19-billion commitment to build out cloud and AI infrastructure across Canada between 2023 and 2027, with the Ontario project emphasizing collaboration with government and local stakeholders under the company’s Community First approach. The initiative is expected to create approximately 1,000 construction jobs and 250 permanent roles once operational, according to Invest Ontario.

The new facilities are intended to boost system reliability, expand domestic data capacity and support organizations across sectors such as healthcare, finance, education and government as they adopt AI technologies. Invest Ontario has worked with Microsoft since 2023 to facilitate the expansion, including connecting the company with municipalities and partners such as Toronto Global, which helps international businesses aiming to accelerate expansion, develop relationships and access talent across the region.

Ontario government officials say the investment reinforces the province’s position as a North American leader in cloud computing and AI, while also supporting local infrastructure improvements and regional tech cluster growth.

“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, the province’s minister of economic development centre 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.”

Khawar Nasim, Invest Ontario’s CEO, said Microsoft’s decision to expand its presence in Ontario with local communities in mind reflects the province’s strong talent, clean and reliable energy and stability that global technology leaders require 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,” said Nasim. “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.”

Microsoft’s Community First framework focuses on responsible development, including sustainable energy and water use, skills development and long-term community partnerships.

“Together, these principles shape how we build and operate our data centres across Ontario and Quebec and how we partner with governments, utilities, educators, community organizations, labour groups, and local nonprofits,” Microsoft Canada President Matt Milton in a blog post.

He pledged that Microsoft will work closely with provinces, utilities, system operators, and regulators to plan new supply in advance; design and operate highly efficient data centres; support public policies that advance affordable, reliable and sustainable power; and put the entire cost of the electricity that it uses including expenses tied to new generation, transmission and grade upgrades.

“To date, we have also paid for substations and fully dedicated the substations and land to provincial utilities,” he said. “By paying our full share and planning ahead, we aim to support Canada’s economic growth without overstressing the electric grid or shifting costs onto households or small businesses.

He said Microsoft’s approach to water management prioritizes minimizing potable water use while being transparent and engaging early with provincial and local authorities on water-related decisions. Microsoft is also committed to harvesting rainwater, incorporating LEED Gold certification into data-centre designs, participating in wetland and watershed-restoration initiatives and supporting projects that strengthen monitoring, conservation and long-term ecosystem health.

Invest Ontario is the province’s dedicated investment attraction agency, serving as a one-window partner for global businesses. It provides expertise and tailored support to companies investing in Ontario, with a focus on sectors such as advanced manufacturing, life sciences and technology.

Pictured: Microsoft data centre under development in Toronto.

Rendering: Microsoft