AI, data center companies will have to compete for power in BC
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Data centers and artificial intelligence (AI) companies in BC will have to compete for power from BC Hydro under new provincial legislation.
competitive bidding processThe launch, which took place Friday, will allow BC Hydro to appropriately manage the grid when it comes to “rapidly growing high-load areas,” including AI and data centres, according to Energy Minister Adrian Dix at a press conference Friday.
Charlotte Sweet, president and CEO of BC Hydro, said that without a structured process, the power utility could be “easily overwhelmed” by AI and power-intensive requests from data centres.
“If we have to meet every request exactly as it comes, affordability, reliability, that could impact the customers we serve every day in BC.”
The first tranche of projects will compete for 400 MW of power over a period of two years.
Dix said that number would not limit the industry, calling it “a lot of power” – about 35 percent of the power from the Site C dam.
“The first-come, first-served system, if you are not able to provide (for it), if you are not doing it in a planned manner, it is just chaos. It does not bring investment.”
Dix said bids will be evaluated on criteria including data sovereignty, environmental benefits, First Nations participation and price, to ensure “electricity is directed to those industries that provide the greatest benefits.”
He said Canadian companies would generally benefit from the process.
Some Canadians have expressed concern Regarding the potential negative impact data centers may have on water supplies, as many facilities require cooling systems.
BC’s Energy Ministry told CBC News that projects using heat recovery, water-use and other energy efficiencies will be prioritized in the competitive process.
According to Dix, traditional sectors including mining, LNG, forestry and manufacturing will remain under existing processes and will not require bidding.
He said some projects that are already advanced would be grandfathered under the previous rules.
conservatives retreat
The BC Conservative Party said in a news release that the government is “rationing” electricity and choosing “winners and losers” through its selection process.
“This avoids the core problem: British Columbia does not have enough stable, affordable electricity to meet growing demand,” David Williams, the party’s BC Hydro and electric self-sufficiency critic, said in the release.
Conservatives said there is not enough power generation or transmission infrastructure to meet demand from AI and other sectors.
“Limiting access to electricity will delay or cancel data center construction, force approved projects to pay higher rates, and shift more risk onto ratepayers as shortages replace long-term planning,” the statement said.
Applications for the bidding process will close on March 18 and decisions will be taken soon.
