British Columbia (Rajeev Sharma): The British Columbia government has announced a new competitive system to allocate electricity to artificial intelligence firms and data centre developments, a move aimed at managing rapidly rising demand for power while prioritising projects with long-term benefits for the province.
Under the new framework, companies will compete for access to a fixed pool of 400 megawatts of electricity over the next two years. Energy Minister Adrian Dix said the approach is designed to ensure that limited power resources are directed toward projects that deliver strong economic returns, environmental responsibility, community benefits and data sovereignty for B.C.
Speaking at a news conference on Friday, Dix clarified that the selection process will apply specifically to AI and data centre projects and will not affect traditional resource sectors such as liquefied natural gas, forestry or mining. He said the province needs a structured way to handle surging electricity requests from power-intensive industries.
The decision follows developments in parts of the United States, where electricity prices have climbed sharply amid a boom in data centres. Dix said British Columbia wants to avoid similar outcomes by learning from jurisdictions that have experienced economic strain due to unchecked power demand.
Jobs Minister Ravi Kahlon said the competitive model is expected to continue attracting investment while ensuring the creation of high-value technology jobs, rather than overwhelming the province’s electricity system.
BC Hydro has warned that provincial electricity demand could rise by at least 15 per cent by 2030. Utility CEO Charlotte Mitha said that without clear limits, the scale of power requests from AI and data centre developers could exceed what the system can responsibly deliver. She added that a transparent selection process gives proponents a fair opportunity while allowing BC Hydro to plan effectively.
The announcement drew criticism from the B.C. Conservative Party, which accused the government of rationing electricity and arbitrarily choosing which projects move forward. In a statement, the party argued that the policy fails to address the underlying issue of insufficient power generation and transmission capacity. Conservatives also warned that limiting access to electricity could delay data centre projects, drive up costs and shift risks onto ratepayers.
Responding to the criticism, Dix acknowledged that the province does need to expand its power supply but said the current allocation is significant, noting that 400 megawatts over two years represents more than a third of the capacity of the Site C dam, which can generate about 1,100 megawatts.
The government said the competitive process will help ensure that approved projects deliver maximum value to the provincial economy while protecting environmental goals and strengthening control over data infrastructure.
Applications for the new power allocation process are open until March 18. Projects already under development will not be required to apply. Officials expect successful applicants to be informed by late summer or early fall.
British Columbia has previously taken steps to manage electricity demand from emerging industries, including a permanent ban on new grid connections for cryptocurrency mining, citing concerns that rapid growth in that sector was driving up costs and straining the system for households and businesses.
