New technologies can reduce electrical waste as demand surges: energy expert

Emily Heitman, President of Schneider Electric Canada, joins BNN Bloomberg to discuss the outlook on energy demand amid AI boom and tariff pressures.

As Canadian energy suppliers face an unprecedented demand to power artificial intelligence (AI) and data centres, an expert says new technologies can reduce electrical waste.

“We waste as a country, 50 per cent of the energy we produce,” said Emily Heitman, president of Schneider Electric Canada, in an interview with BNN Bloomberg on Tuesday.

“With digital technology coming alongside electrical equipment in your home, building and factory and the onset of AI, we can now real time monitor and manage the electrical usage that’s being utilized throughout the entire system of that building.”

The Canada Energy Regulator says that there are currently an estimated 239 data centres operating across Canada and the industry is expanding. It states data centres and their data transmission networks consume a lot of energy.

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Schneider Electric Canada is a subsidiary of French power-equipment manufacturer, Schneider Electric SE. It helps customers, such as homeowners and building owners, manage and improve energy efficiency and resiliency.

“A good example would be an airport running the HVAC system at night when there is nobody in the section of the airport or a machine idling in a factory in the middle of the night when there’s no production going on,” said Heitman. “These are great examples of where energy is wasted every single day in practical applications.”

According to the International Energy Agency, data centres consumed an estimated 460 terawatt-hours (TWh) globally, or roughly 1.4 to 1.7 per cent of global electricity in 2022. That amount of energy is about 71 per cent of Canada’s electricity generation that same year and the agency projects global data centre energy consumption will double by the end of 2026.

“We like to say: ‘We don’t make energy, but we help our customers manage the energy that they’re utilizing,’” said Heitman.

Heitman acknowledged the conversation around energy use and production has ramped up in Canada in recent months considering the ever-changing geopolitical and trade environment.

After the U.S. placed blanket tariffs on Canadian imports earlier this year, Ontario Premier Doug Ford briefly introduced a 25 per cent levy on U.S.-bound electricity exports as an initial retaliatory measure. Ford suspended the levy after a meeting with U.S. Commerce Secretary Howard Lutnick in Washington.

“It is our plan to say: ‘Let’s produce as much as we can in Canada, strengthen the global supply chains we have and make sure we’re still serving our customers effectively no matter what is going on in the uncertainty of our geopolitical situation,’” Heitman said.

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The company is expanding its production capacity in Quebec by 30 per cent and adding 70 new employees to meet the rising demand for electricity, driven by AI and digital technology.

“We make switchboards, from panel boards to all types of electrical equipment for low voltage and medium voltage applications that are both produced in Quebec but also shipped across Canada for electrical distribution in this country,” said Heitman.