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As ‘Rapidly Growing’ AI Consumes More Energy, B.C. to ‘Manage Demand Carefully’

February 2, 2026 by Knowlton Thomas

British Columbia says is launching a competitive process for artificial intelligence and data centres to help manage rising electricity demand.

“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,” posits Adrian Dix, Minister of Energy and Climate Solutions.

B.C.’s AI sector is “rapidly growing,” according to a statement from the government, with “growing recognition of the importance of data centres to protect and secure Canadian data.”

However, there are also energy concerns, the Province says.

The Province is working with BC Hydro on this process to ensure the grid is clean and reliable.

Through Bill 31, the Energy Statutes Amendment Act, and a new regulation, there is now a requirement for prospective AI and data-centre projects to take part in a selection process to access clean electricity.

“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,” suggests Charlotte Mitha, chief executive officer of BC Hydro.

Clean electricity “is essential to B.C.’s economic success, and demand is growing quickly,” Dix says. “We are creating a clear path for emerging industries, like AI, to quickly and efficiently get the power they need, positioning British Columbia as a leader in innovation and data sovereignty.”

As “demand for technology infrastructure grows, British Columbia needs a strategic approach to ensure our clean electricity supports the right projects,” explains Ravi Kahlon, Minister of Jobs and Economic Growth. “By supporting projects already well underway and establishing a clear, transparent path for future proposals, we’re ensuring clean electricity powers well-paying jobs and opportunities across the province.”

The competitive process applies to AI and data centres only. The requirement, which the Province says will support job creation and reduce emissions, does not apply to traditional industries such as mining, liquefied natural gas, forestry, manufacturing, or hydrogen for domestic use.

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