British Columbia has moved to ration electricity access for artificial intelligence (AI) and data centres, forcing projects to compete for limited grid capacity under new rules.
The provincial government launched a competitive bid process Friday that will require high-load users to seek approval from B.C. Hydro. Consequently, AI firms and data centre developers must now justify how their projects benefit the province.
Energy Minister Adrian Dix said the change gives the utility tools to manage rapidly growing electricity demand. He argued that unmanaged requests from power-hungry facilities could strain affordability and reliability for existing customers.
Meanwhile, B.C. Hydro president and chief executive Charlotte Mitha warned that demand could overwhelm the system without structure. She said a first-come, first-served approach risks destabilizing service for households and businesses already connected.
The first intake will allocate 400 megawatts of power over two years. Additionally, Dix said that amount equals roughly 35 per cent of the electricity expected from the Site C dam.
He rejected claims the cap would stall investment. However, Dix said unplanned access creates grid chaos and discourages serious long-term development.
Under the program, applicants will compete based on multiple criteria rather than timing alone. Furthermore, officials will assess data sovereignty, environmental performance, First Nations participation and offered power prices.
The province said projects that keep data in Canada will generally score better. Additionally, Dix suggested domestic firms would often hold an advantage over foreign applicants.
Water use has become a public concern as data centres expand. Consequently, the energy ministry said it will favour designs that recover waste heat or minimize cooling demand.
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BC Conservatives criticize move as electricity rationing
Officials added that projects using efficient water systems and advanced energy management will rank higher. Meanwhile, facilities relying on conventional cooling could face steeper competition.
Traditional industrial users will not enter the bidding process. Dix said mining, liquefied natural gas, forestry and manufacturing will remain under existing approval rules. He added that some advanced data centre projects already in development will be grandfathered. Consequently, those proponents can proceed under previous electricity access policies.
The opposition B.C. Conservative Party criticized the move as electricity rationing. In a statement, the party accused the government of choosing winners and losers.
Conservative MLA David Williams said the policy avoids the deeper issue of inadequate power supply. Furthermore, he argued that the province lacks sufficient firm generation and transmission capacity. The Conservatives warned that restricted access could delay or cancel data centre construction. Additionally, they said higher power costs could shift financial risk onto ratepayers.
The party argued that scarcity would replace long-term infrastructure planning. Conversely, the government said the bidding system enables deliberate, orderly growth. Applications for the competitive process will close on March 18. Subsequently, B.C. Hydro expects to announce successful bids by early fall.
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