Hydro-Québec, the hydro utility in Quebec, is looking to raise electricity prices significantly for data centers and cryptocurrency operations. The utility has requested the province’s energy board to increase rates for new data centers to 13 cents per kilowatt hour, which is approximately double the rate charged to customers with high power consumption. Existing data centers connected to the grid will experience a gradual transition to the new rate over a five-year period, as per the utility’s announcement.
The proposed rate hike will apply to data centers consuming more than 5 megawatts per year and, if approved by the regulator, is expected to take effect in the latter half of 2026. Additionally, Hydro-Québec is seeking permission to incrementally raise prices over three years for blockchain and cryptocurrency activities to 19.5 cents per kilowatt hour. This adjustment aims to better align with the energy intensity of these operations and their limited economic benefits, according to the utility.
The utility emphasizes that these adjustments are intended to ensure that data centers and cryptocurrency operations bear the costs of their high electricity consumption while still paying competitive rates. The changes are positioned to enable Quebec to fully leverage its energy resources, especially considering the projection that data center electricity usage is forecasted to surge sevenfold by 2035, exceeding 1,000 megawatts.