The Legault government in Quebec has quietly made a significant move to encourage growth in data centers and blockchain technology for cryptocurrency, despite imposing higher electricity rates on these industries compared to other industrial customers.
Two new categories of electricity consumers, namely data centers and blockchains for cryptocurrency, have been established following the publication of two decrees on January 28 in the Quebec Official Gazette. These decrees instruct the Energy Board to create specific rates for these industries that reflect the cost of new supplies, rather than the average cost of supplies, allowing Hydro-Québec to recover investments in electricity production.
Premier François Legault’s focus on developing data centers is driven by the goal of enhancing Quebec’s digital sovereignty and reducing reliance on foreign companies for managing citizens’ data. With an emphasis on local data centers, particularly in the field of artificial intelligence, Legault aims to secure control over Quebecers’ data and potentially attract major players like Google to the province.
While data center companies have shown interest in Quebec’s green energy, the new rates could go as high as 15 cents per kilowatt-hour, significantly higher than the current industrial rate of 3.7 cents per kWh. This move is expected to bolster Hydro-Québec’s capacity to meet the growing demand from data centers, which is projected to increase substantially in the coming years.
On the other hand, the decree related to cryptocurrency mining hints at even higher fees to discourage this activity due to its lower economic returns compared to data centers. The Energy Board clarifies that no special rates have been requested for data centers or blockchain use for cryptocurrency mining in the upcoming tariff review.
Despite the potential challenges posed by the new electricity rates, the growth of data centers is crucial in driving the digital economy forward, even though they may not generate significant employment opportunities.
