Hydro-Québec proposes doubling data centre electricity rates as demand set to surge
Consultants hired by Hydro-Québec forecast a 133% rise in North American data centre power use by 2030 and the utility is asking to double the rates it charges, to about 13 cents per kilowatt hour.
At a public hearing on Hydro-Québec's rate proposal, analysts from the consulting firm Dunsky warned that data centre electricity demand in North America may increase by about 133% from 2024 to 2030. Based on that projection, the utility seeks to raise the price it charges data centres to an average of 13 cents per kilowatt hour, which is roughly double what large-power customers currently pay. Hydro-Québec commissioned Dunsky to examine how other jurisdictions across the continent have responded to the growing energy needs of data centres.
The consultants observed that several regions have already lifted rates for such facilities to limit the impact on residential electricity costs. Quebec's energy regulator, the Régie de l’énergie, is now evaluating the proposed hike. If approved, the new rates could reshape the cost structure for data centre operators in the province.
Why it matters
Higher data centre rates could raise tech operating costs and affect residential electricity bills in Quebec.
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