Vancouver (Rajeev Sharma): The British Columbia government has rolled out a new electricity allocation system requiring data centres and artificial intelligence (AI) companies to compete for power as demand from energy-intensive industries continues to grow.
Under the new framework, B.C. Hydro will distribute electricity to high-load sectors through a competitive bidding process. Energy Minister Adrian Dix said the move is aimed at ensuring the stability of the provincial power grid while supporting sustainable economic growth.
B.C. Hydro president and CEO Charlotte Mitha said a structured process is essential to manage the surge in large power requests from AI firms and data centres. She warned that responding to every request on a first-come, first-served basis could strain the system and impact affordability and reliability for existing customers.
In the first phase, projects will compete for 400 megawatts of electricity over a two-year period. Dix described the allocation as substantial, noting it represents roughly 35 per cent of the electricity generated by the Site C hydroelectric dam. He added that planned distribution is critical to attracting investment without creating uncertainty.
Bids will be assessed based on several criteria, including data sovereignty, environmental impact, First Nations participation, pricing and overall public benefit. The provincial energy ministry said projects that demonstrate energy efficiency, heat recovery and responsible water use will be given preference. Canadian companies are expected to have a general advantage in the process.
Concerns have been raised by the public over the water consumption of data centres, particularly those relying on cooling systems. Officials said environmental safeguards and efficiency measures will play a key role in project approvals.
Traditional industries such as mining, forestry, liquefied natural gas and manufacturing will continue to access electricity under existing rules and will not be subject to the bidding process. Projects already well advanced in development will also be allowed to proceed under previous regulations.
The policy has drawn criticism from the B.C. Conservative Party, which accused the government of rationing electricity and selectively approving projects. The party argued that the province lacks sufficient power generation and transmission infrastructure to meet growing demand, warning that restrictions could delay development and raise costs for consumers.
Applications for the competitive power allocation process will close on March 18, with final decisions expected by early fall.
