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Hydro-Québec Wants to Double Data Centre Costs, Google and Others Prepare Rebuttal
The utility says the change would raise prices to about 13 cents per kilowatt hour and affect data centres using more than 5 MW.
A Hydro-Québec proposal that could double electricity costs for data centres is under review at a public hearing in Montreal. The hearing will determine if the new rate structure is fair and sustainable.
Hydro-Québec argues that raising rates to an average of 13 cents per kilowatt hour could protect residential customers from rising demand. Currently, data centres pay roughly six cents per kilowatt hour.
Data centres subject to the new rate currently consume 190 MW at peak consumption, with usage potentially reaching 1,000 MW by 2035. Energy analyst Jean-François Blain noted the utility may soon struggle maintaining such advantageous pricing.
The hearing, scheduled to last until Oct. 9, involves industry actors including Google and the Canadian Federation of Independent Business challenging the proposal. These stakeholders represent competing interests in the rate debate.
Provincial regulators will review whether the new rate for data centres is fair and sustainable as energy demand accelerates. The outcome will determine if the utility can maintain advantageous pricing for the sector long-term.