The Canadian province of British Columbia and Canadian utility BC Hydro have launched a new competitive process for artificial intelligence and data center projects to manage growing electricity demand while protecting grid reliability.

The Energy Statutes Amendment Act will require AI and data center developers to compete for access to clean electricity based on economic, community, data sovereignty, and environmental benefits. Traditional industries such as mining, forestry, LNG, manufacturing, and hydrogen will be excluded from the process.

“Clean electricity is essential to BC’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.”

The policy will be implemented by BC Hydro, with a call for demand to interested parties opened on January 30. Successful applicants for the process will be notified in September 2026, with a target of 400MW over the first two years.

“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.”

Projects that have already progressed through BC Hydro’s interconnection queue, including those with signed transmission studies or distribution design deposits, will proceed under the existing 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 of 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.”

Reports on the legislation first emerged late last year, with the government stating at the time that it was aimed at addressing “unprecedented demand for electricity and ensure that BC and Canadian economic interests are reflected in the allocation of British Columbia’s growing clean-electricity supply.”

The new legislation is also expected to “permanently ban new BC Hydro connections to the electricity grid for cryptocurrency mining.”

A report from DC Byte states that Canada’s data center market is set to experience exponential growth in the coming years, owing to its abundant land and clean energy. British Columbia has seen moderate data center growth, with most of its facilities located around the province’s largest city, Vancouver.