B.C. launching competitive process for clean power in high-demand sectors

VANCOUVER -

Summary

• Province and BC Hydro are launching a competitive process to manage rising electricity demand and support balanced development of artificial intelligence and data-centre projects
• The new approach, enabled through Bill 31, prioritizes clean electricity for projects that deliver the greatest long-term economic, community and environmental benefits for people in British Columbia
• The competitive process opens Friday, Jan. 30, 2026, with successful applicants expected to be notified in September 2026

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The Province and BC Hydro are launching a new competitive process for artificial intelligence (AI) and data centres, to help manage rising electricity demand, while creating a clear, transparent approach for future projects.

"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. At the same time, 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."

B.C.'s AI sector is rapidly growing and there is growing recognition of the importance of data centres to protect and secure Canadian data. At the same time, to responsibly manage the growth of AI and data centres, and balance critical energy needs, the Province has made changes that will prioritize electricity service to projects in these emerging sectors that provide the greatest benefits and jobs for people in British Columbia, and do so at an appropriate pace.

Competitive selection for emerging high-load industries

• 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 competitive selection process to access clean electricity.
• This requirement does not apply to traditional industries, such as mining, liquefied natural gas (LNG), forestry, manufacturing or hydrogen for domestic use.
• The new approach enables projects that support job creation, reduce emissions, maintain affordability and contribute to long-term economic development.
• In alignment with the objectives of the Look West strategy, this will ensure B.C. is protecting electricity capacity needed by long-standing industries, while supporting strategic growth in newer sectors that align with provincial priorities, such as data sovereignty and innovation.

BC Hydro will implement this legislation through the 2026 call for demand for emerging industries. The process provides a clear and predictable path, from application and screening to feasibility studies and final bids. Projects will be assessed based on price and their economic, community, data sovereignty and environmental benefits.

The allocation targets for these projects are for as much as 400 megawatts for the first two years.

Supporting well-advanced projects

The Province is providing clarity for AI and data-centre projects that are well advanced in BC Hydro's interconnection queue.

"As demand for technology infrastructure grows, British Columbia needs a strategic approach to ensure our clean electricity supports the right projects," said Ravi Kahlon, Minister of Jobs and Economic Growth. "Our Look West strategy prioritizes projects that deliver the greatest economic and environmental benefits, with a focus on data sovereignty. 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."

Projects with a signed facilities study agreement for transmission, or a design deposit for distribution, will continue under the existing interconnection process.

"Providing clarity for customers already advancing through our interconnection process is essential for maintaining confidence in the system," said Charlotte Mitha, president and CEO, 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."

Taking next steps

The competitive process opens Jan. 30, 2026, with successful applicants expected to be notified in September 2026. The Province and BC Hydro will continue working with First Nations, local governments and industry partners to ensure projects are developed responsibly and that B.C.'s clean electricity system continues to serve communities now and in the future.

The Province's work to prioritize clean electricity for artificial intelligence and data centres is aligned with the Look West economic and job-creation strategy, which lays out a path forward to deliver jobs and opportunities for people.

Through Look West, B.C. is positioning AI and quantum computing as priority sectors for economic growth. This includes 10-year goals to increase the economic value of technology sectors and doubling employment to 400,000jobs.

Quick Facts:

• The competitive process applies to AI and data centres only.
• Traditional industries, such as mining, forestry, LNG, manufacturing and hydrogen for domestic use, are not part of the competitive process.
• During the first two years, allocation targets include as much as 400 megawatts for AI and data centres.
• Projects that are well advanced in BC Hydro's interconnection queue will continue under the existing process if required agreements or deposits are in place.

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