Data centre, AI projects now face competitive process for clean power in BC

BC Hydro’s call for projects reflects new requirement in Energy Statutes Amendment Act
Data centre, AI projects now face competitive process for clean power in BC

The British Columbia government has commenced a competitive selection process for clean electricity in emerging sectors with high demand, with BC Hydro calling for data centres and artificial intelligence (AI) projects aimed at enabling data sovereignty and AI adoption. 

In its news release, the provincial government shared that the Energy Statutes Amendment Act (Bill 31) and a new regulation now require proposed data centre and AI projects to participate in a competitive process to access clean power. 

BC Hydro’s 2026 call for projects in these emerging industries reflects the new legislative requirement. 

According to Charlotte Mitha, BC Hydro president and chief executive officer, “the new competitive process will give emerging proponents a fair, transparent pathway to access clean electricity in a way that protects long-term affordability and grid reliability for our customers.” 

In its news release, the BC government noted that the new requirement does not cover mining, liquefied natural gas (LNG), forestry, manufacturing, hydrogen for domestic use, or other traditional industries. 

The province explained that the new competitive process seeks to: 

  • Enable projects that create jobs, decrease emissions, promote affordability, and spur long-term economic development 
  • Manage the rising electricity demand 
  • Support the balanced development of data centre and AI projects 
  • Ensure the electricity capacity needed for long-standing industries 
  • Offer clarity, transparency, and predictability across the application, screening, feasibility study, and final bid phases of future projects 
  • Support strategic growth in emerging industries 

BC’s news release noted that the allocation targets will be for up to 400 megawatts for the first two years and that factors to consider when assessing projects will include their prices and their economic, community, data sovereignty, and environmental benefits for British Columbians.

“Our Look West strategy prioritizes projects that deliver the greatest economic and environmental benefits, with a focus on data sovereignty,” said Ravi Kahlon, BC minister of jobs and economic growth, in the news release. 

“By managing demand carefully and directing power to projects that deliver the greatest long-term benefits, we will build our province, while protecting affordability and reliability for British Columbians,” added Adrian Dix, BC minister of energy and climate solutions. 

BC’s new competitive process opened on Jan. 30, with successful applicants to be notified this September. 

Emerging sectors

In its news release, the provincial government explained that the emerging data centre and AI industries potentially provide the greatest benefits and jobs for British Columbians at a proper pace.

The BC government highlighted the rising recognition of the importance of data centres in protecting and securing Canadian data amid the rapid growth in the province’s AI sector. BC also noted recent changes to prioritize serving electricity to projects in these newer sectors. 

The province and BC Hydro plan to keep working with First Nations, local governments, and industry partners to promote the responsible development of projects and communities’ access to BC’s clean electricity system. 

“Clean electricity is essential to B.C.’s economic success, and demand is growing quickly,” Dix said in the news release.