Data centers and artificial intelligence (AI) firms in British Columbia are now required to vie for access to electricity from B.C. Hydro as per new provincial regulations. The competitive bidding system, which commenced on Friday, enables B.C. Hydro to effectively manage the power grid concerning rapidly expanding high-energy sectors such as AI and data centers, stated Energy Minister Adrian Dix during a recent press briefing. Without a structured process in place, B.C. Hydro’s President and CEO, Charlotte Mitha, expressed concerns that the power provider could be overwhelmed by power-intensive demands from AI and data centers, potentially impacting affordability and reliability for customers across the province.
The initial round of projects will be competing for 400 megawatts of electricity over a two-year span. Dix emphasized that this allocation is substantial, representing about 35% of the power generated by the Site C dam. He highlighted that a first-come, first-serve approach without proper planning would lead to chaos and deter investment. Bids will be evaluated based on various criteria such as data sovereignty, environmental advantages, First Nations involvement, and cost, ensuring that electricity is channeled towards sectors offering the greatest benefits. Canadian companies are expected to have an edge in the selection process.
There have been concerns raised by some Canadians regarding the potential environmental impact of data centers on water resources due to their cooling requirements. The energy ministry in British Columbia has stated that projects incorporating heat recovery, water conservation, and other energy-efficient practices will be favored in the competitive bidding process. Meanwhile, traditional industries like mining, LNG, forestry, and manufacturing will continue under existing protocols and are not required to participate in the bidding process. Projects already in progress will be grandfathered under the previous guidelines.
In response to the new regulations, the B.C. Conservative Party criticized the government for what they perceive as electricity rationing and favoritism in the selection process. According to David Williams, the party’s B.C. Hydro and electric self-sufficiency critic, British Columbia lacks sufficient affordable power to meet the rising demand, leading to potential delays, increased costs for approved projects, and heightened risk for consumers. The application deadline for the bid process is March 18, with decisions expected to be finalized by early fall.
