BC Hydro begins selection process to deliver power for AI, data centre projects
Traditional industries—mining, liquefied natural gas, forestry, manufacturing and hydrogen for domestic use—are exempt.
Key Takeaways:
- B.C. and BC Hydro are launching a competitive process to allocate up to 400 megawatts of clean electricity to AI and data-centre projects, with applications opening Jan. 30, 2026 and successful projects notified in September 2026.
- Only AI and data-centre projects are subject to the new selection process, while traditional industries such as mining, LNG, forestry, manufacturing and hydrogen are exempt, and advanced projects already in the interconnection queue can continue under existing rules.
- The initiative supports the Province’s Look West economic strategy by prioritizing AI and quantum computing, while aiming to protect electricity affordability, grid reliability, and ensure responsible development with First Nations and local governments.
The Whole Story:
The Province and BC Hydro are launching a competitive selection process for artificial intelligence and data-centre projects seeking access to clean electricity, with the application window opening Jan. 30, 2026, and successful applicants expected to be notified in September 2026.
The new process, enabled through Bill 31 (Energy Statutes Amendment Act), will allocate as much as 400 megawatts of electricity over the first two years to projects that deliver the greatest long-term economic, community and environmental benefits, the Province said in a news release.
“Clean electricity is essential to B.C.’s economic success, and demand is growing quickly,” said Adrian Dix, Minister of Energy and Climate Solutions. “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.”
The competitive process applies only to AI and data-centre projects. Traditional industries—mining, liquefied natural gas, forestry, manufacturing and hydrogen for domestic use—are exempt and will not participate in the selection process.
BC Hydro will assess applicants based on price and their economic, community, data sovereignty and environmental benefits. Projects will move through a defined pathway that includes application screening, feasibility studies and final bids.
“Providing clarity for customers already advancing through our interconnection process is essential for maintaining confidence in the system,” said Charlotte Mitha, president and CEO of BC Hydro. “At the same time, 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.”
AI and data-centre projects that are already well advanced in BC Hydro’s interconnection queue will continue under the existing process if they have a signed facilities study agreement for transmission or a design deposit for distribution in place.
The initiative aligns with the Province’s Look West economic strategy, which positions AI and quantum computing as priority sectors. The strategy includes 10-year goals to increase the economic value of technology sectors and double technology employment to 400,000 jobs.
The Province said it will continue working with First Nations, local governments and industry partners to ensure projects are developed responsibly.