Hydro-Québec proposes higher data centre electricity rates

HydroQuébec is asking Quebec regulators to approve a new electricity rate for large data centres, saying the industry’s rapid growth could raise costs for other customers if prices stay too low. At a public hearing in Montreal on Thursday, the utility said the proposed rate could roughly double what data centres pay, increasing the average price to about 13 cents per kilowatt hour from 6.82 cents. The utility argued that the province’s era of energy surplus has ended and that it needs to manage demand more carefully as data centres could use far more power in the coming years. HydroQuébec said the facilities covered by the proposal currently draw about 190 megawatts at peak demand and could reach 1,000 megawatts by 2035. The plan has drawn opposition from technology companies, including Google, as well as environmental groups such as Greenpeace. The regulator will consider whether the new rate is fair and sustainable, with hearings scheduled to continue into December.