The bidding for who gets to build data centres in B.C. is set to begin.
In a novel process, BC Hydro and the province are set to open the data centre connection queue to competitive bidding, and 400 megawatts of electricity is at stake. That’s about enough power for approximately 400,000 homes.
The government created this new process through legislation it passed in the fall. That bill, the Energy Statutes Amendment Act, also helped expedite the North Coast Transmission Line project, an electrical line set to be built across northern B.C.
The bidding is set to begin immediately, according to a Friday (Jan. 30) announcement from the province.
This process is distinct from other jurisdictions – Energy Minister Adrian Dix gave the example of New Jersey – where customers’ energy bills have soared as data centres suck more and more power, often on company-friendly deals. Many of these data centres are being built to power artificial intelligence operations.
“We see the consequences in other jurisdictions, and we have learned from other jurisdictions,” Dix said.
Because B.C. has a publicly-owned utility, the province can approach the growth in demand differently than other places with for-profit suppliers. Dix said the goal is to allow a limited number of connections and prioritize those with the most economic benefit, specifically those that create the most jobs and contribute the most to Canada’s data sovereignty.
Jobs Minister Ravi Kahlon said the province is trying to strike a balance, ensuring reliable access to advanced computing within B.C., while avoiding the “missteps” of other places where the development of new data centres outpaces new electricity supply.
Future rounds of bidding will release more megawatts for data centre use. Developments already underway with deals in place to connect to the grid will still be allowed to proceed without going through this process.
Dix said B.C. already has some of the lowest power rates in the world, and some of the cleanest electricity. BC Hydro is just now deciding on its latest tranche of new wind and solar projects through a separate call for power process.
This competitive bidding plan for data centres aims to ensure companies pay their fair share, while allowing time for the development of more renewable electrical capacity.
“In the bidding process, companies will be able to offer more for access to BC Hydro’s competitive bid,” Dix said. “So this is really a benefit to rate payers.”