Energy Minister Adrian Dix announces a competitive bid process for AI and data centres looking for electricity from B.C. Hydro Friday, Jan. 30, 2026. (Samuel Perrin/Radio-Canada)
British Columbia launched a competitive bidding process on Friday that requires artificial intelligence and data centre companies to fight for access to electricity from BC Hydro, marking one of the first provincial governments in Canada to formally ration clean power among high-demand tech projects. The move, enabled through Bill 31, reflects a growing tension across North America between the explosive power demands of AI infrastructure and the grid capacity available to serve existing customers.
How the Process Works
Under the new framework, AI and data centre developers can apply for a share of 400 megawatts of electricity allocated over the first two years. Energy Minister Adrian Dix described that figure as roughly 35 percent of the output from BC Hydro's Site C hydroelectric dam, positioning it as a meaningful allocation rather than a restrictive cap. Applications are open until March 18, with successful applicants expected to be notified in September 2026.
Projects will be evaluated on price alongside broader criteria including economic impact, data sovereignty, environmental performance, and community benefit. The province's Look West strategy explicitly prioritizes Canadian companies, giving domestic operators an advantage in a process designed around local data control and job creation. BC Hydro projects that electricity demand across the province will increase by at least 15 percent by 2030.
Who Is and Isn't Affected
The competitive process applies exclusively to AI and data centres. Traditional industries including mining, liquefied natural gas, forestry, and manufacturing continue accessing electricity under existing rules without bidding. Projects already well advanced in BC Hydro's interconnection queue will proceed under previous terms if required agreements or deposits are in place. The province also permanently banned new grid connections for cryptocurrency mining, citing the sector's disproportionate energy consumption and negative impact on residential affordability.
The U.S. Warning That Shaped B.C.'s Approach
Dix explicitly cited the experiences of New Jersey and Virginia as motivation. Both states aggressively courted data centre investment and successfully attracted major tech infrastructure, but are now passing rising electricity costs directly to residential customers as grid strain mounts. BC Hydro CEO Charlotte Mitha stated that without a structured process, the utility could be overwhelmed by power-intensive requests, threatening affordability and reliability for everyday customers across the province.
Industry Interest Is Already High
Bell Canada has announced plans to launch six AI data centres in British Columbia, and several former bitcoin mining operators are converting facilities to AI workloads as demand shifts. The province is positioning itself as a destination for AI infrastructure investment on the strength of its clean hydroelectric grid and relatively stable regulatory environment.
The Political Pushback
The B.C. Conservative Party accused the government of rationing electricity and picking winners and losers. Opposition critic David Williams argued the policy fails to address the root problem, which is insufficient power generation and transmission capacity to meet growing demand. The Conservatives warned that limiting access could delay or cancel data centre construction and ultimately shift more financial risk onto ratepayers.
