Canadian province moves to limit AI power use, ban crypto mining

OTTAWA – British Columbia (BC) has proposed legislation to limit how much electricity will be available to artificial intelligence (AI) data centres, and moved to permanently ban new cryptocurrency mining projects.

The government of Canada’s third-most populous province will prioritise connections to its power grid for other purposes like mines and natural gas facilities because they provide more jobs and revenue for people in BC, the Energy Ministry said on Oct 20.

“Other jurisdictions have been challenged to address electricity demands from emerging sectors and, in many cases, have placed significant rate increases on the backs of ratepayers,” the ministry said on Oct 20.

That is a reference to US states like Virginia and Maryland, where a proliferation of the power-hungry data centres needed for AI appears to be pushing up citizens’ power bills, according to a Bloomberg analysis. BC “is receiving significant requests for power” from these industries, Energy Minister Adrian Dix said at a press conference.

BC Hydro, the government-owned electrical utility, whose name reflects the province’s reliance on hydroelectric dams, will launch a competitive call for projects in early 2026 for a two-year period, allocating 300MW for AI and 100MW for data centres. 

For comparison, Meta Platforms’ next data centre in El Paso, Texas, announced in October, will be its 25th in the US and could ultimately consume one gigawatt on its own.

Industrial power available for mining, oil and gas, manufacturing, forestry and hydrogen will be uncapped, the BC ministry said. 

BC’s approach contrasts with other regions’ dash to hook up new server farms. The neighbouring province of Alberta wants to attract C$100 billion (S$92 billion) of data centre investments in the next five years and is touting its large natural gas reserves as a source of power supply.

BC imposed a moratorium on new crypto-mining connections in 2022, which it extended in 2024. This is now set to be made permanent due to its “disproportionate energy consumption and limited economic benefit”, the government said.

North Coast line

BC also said it would exempt a major planned transmission line in the north of the province from a regulatory certification, cutting as much as 18 months from its development time. Once built, the North Coast Transmission Line would make it easier to bring large new mines and resource projects onto BC’s grid.

Interconnection charges will also be amended to allow multiple customers seeking power to provide financial security to BC Hydro. Today, the obligation falls on the first customer in the queue, dissuading other investments, BC said.

BC also plans to amend rules to allow indigenous groups to pursue part ownership of the infrastructure, a structure not covered by current legislation. BLOOMBERG