Hydro-Québec has officially proposed a new rate for large data centers, set at 13 cents per kilowatt-hour (kWh), which is about double the price currently paid by customers on the high-power rate.
In a press release issued Thursday morning, the Crown corporation asked the Régie de l’énergie to introduce this new rate, which would apply to data centers consuming more than 5 megawatts (MW).
If the Régie de l’énergie approves its creation, this new rate will be introduced in the second half of 2026.
Projects over 5 MW remain subject to a selection process. For data centers already connected to the grid, Hydro-Québec is proposing a gradual transition to the new rate over five years.
On Wednesday, The Canadian Press highlighted two decrees published on January 28 in the Gazette officielle du Québec asking the Régie de l’énergie to create two new categories of electricity consumers: one for data centers and the other for cryptocurrency blockchains.
Premier François Legault makes no secret of his interest in the development of data centers, even though they consume a lot of energy and Hydro-Québec no longer has a surplus.
Its goal is to develop Quebec’s digital sovereignty, in a context where it has become more risky to entrust the management of Quebecers’ data to American companies.
The interest of data center companies in Quebec’s green energy is well known, and François Legault maintains that they are willing to pay the price.
In addition, Hydro-Québec is also proposing to increase the rate for cryptographic use applied to blockchains to 19.5¢/kWh.
This rate is also scheduled to come into effect in the second half of 2026, subject to regulatory approval, and a transitional rate will be offered to current customers for three years.
–This report by La Presse Canadienne was translated by CityNews