Hearing on electricity prices for data centres in Quebec begins
Posted October 1, 2026 6:47 am.
A proposal by Hydro-Québec that could double the cost of energy for data centres will be examined during a public hearing.
The hearing, which begins Thursday in Montreal, will pit technology industry players, such as Google, against the Quebec utility.
Hydro-Québec is asking the Régie de l’énergie, the provincial energy regulatory agency, to consider a new electricity rate for data centres requiring more than five megawatts of power.
This proposal would raise the average price of electricity to 13 cents per kilowatt-hour.
The utility states that this rate is about twice as high as what data centres currently pay as large electricity consumers.
The hearing is expected to continue through Oct. 9 and will bring together stakeholders from several sectors, including the Canadian Federation of Independent Business.
Hydro-Québec believes that higher rates for this sector could limit the impact of data centres’ growing energy demand on residential rates.
Energy costs for data centres in Quebec currently stand at about six cents per kilowatt-hour, which is well below most other jurisdictions, explains energy sector analyst Jean-François Blain.
He notes that this creates an exceptional magnetic effect that benefits Quebec, as long as the province is able to supply these companies with power.
Given the increase in demand and energy costs, Blain believes that Hydro-Québec may no longer be able to maintain this favourable rate for data centres for much longer. The new rate would bring their rates closer to those in other regions.
Hydro-Québec states that the data centres that would be subject to the new rate currently consume 190 megawatts during peak periods and could reach 1,000 megawatts by 2035.
The Régie de l’énergie will examine whether a new rate for data centres is fair and viable.
–This report by La Presse Canadienne was translated by CityNews
