A new provincial law in British Columbia will require data centers and artificial intelligence (AI) firms to compete for electricity from B.C. Hydro. The competitive bidding process, initiated recently, aims to help B.C. Hydro manage the power grid efficiently for fast-growing high-load sectors like AI and data centers, as stated by Energy Minister Adrian Dix during a press briefing.

Charlotte Mitha, the president and CEO of B.C. Hydro, emphasized the necessity of a structured process to prevent the power utility from being overwhelmed by power-intensive requests from AI and data centers. Without such a process, affordability and reliability for everyday customers in B.C. could be compromised.

The initial group of projects will vie for 400 megawatts of electricity over a two-year span. Minister Dix highlighted that this amount, equivalent to about 35% of the power from the Site C dam, is substantial. The selection process will prioritize criteria such as data sovereignty, environmental impact, Indigenous involvement, and cost to ensure that power is allocated to sectors that offer the most benefit.

Concerns have been raised by Canadians regarding the water consumption of data centers due to their cooling systems. The energy ministry of B.C. informed CBC News that projects incorporating heat recovery, water efficiency, and other energy-saving measures will receive preference in the competition.

The B.C. Conservative Party criticized the government’s electricity allocation process, claiming it is restricting power and favoring certain industries. They argued that the current power infrastructure is insufficient to meet the rising demand from AI and other sectors, potentially leading to delays, higher costs, and increased risks for ratepayers.

The application deadline for the bidding process is March 18, with decisions expected to be made by early fall.