Hydro-Quebec proposes new rate for large data centre

A Hydro-Quebec sign. (LA PRESSE CANADIENNE/Ryan Remiorz)

Quebec’s hydro utility is seeking to significantly raise electricity prices for data centres and cryptocurrency operations.

Hydro-Québec has asked the province’s energy board to hike rates for new data centres to 13 cents per kilowatt hour — roughly double the price it charges to customers that consume large amounts of power.

In a news release, the provincially owned utility says electricity prices for data centres already connected to the grid will rise to the new rate gradually over five years.

Hydro-Québec says the new rate will apply to data centres that consume more than 5 megawatts per year, and if accepted by the regulator, will enter into effect in the second half of 2026.

As well, the utility is asking the regulator to raise prices over three years for blockchain and cryptocurrency operations to 19.5 cents per kilowatt hour to “better reflect the activity’s energy intensity and limited economic benefits.”

The utility says the changes are meant to ensure data centres and crypto operations cover the costs associated with their high electricity needs and still pay competitive prices.

With the new rates, “Quebec will now benefit from the full value of its energy resources in a context where data centre electricity use is expected to increase sevenfold by 2035 to over 1,000 megawatts.”

With information from Pierre Saint-Arnaud.

This report by The Canadian Press was first published on Feb. 19.