Hydro-Québec, Canada’s main electrical utility, has proposed a new electricity tariff for large data centers.

The utility set the rate at 13 CAD cents (¢) per kWh, roughly double the current high-power rate, and has subsequently submitted the proposal to the government regulator Régie de l'énergie for approval.

The new rate would apply to data centers exceeding 5MW and, if approved, would come into force in H2 2026. The tariff would be applicable to both new and existing facilities, with existing ones expected to adopt the price gradually during a five-year transition period.

"These tariff changes aim to recognize the contribution of our renewable electricity and promote responsible consumption," said Claudine Bouchard, president and CEO of Hydro-Québec.

The tariff proposals follow government actions to create separate electricity categories for data centers and blockchain operations, citing economic, social, and environmental considerations.

In addition to the data center tariff, the utility also proposed raising tariffs for blockchain facilities to 19.5¢/kWh, with a three-year transition for existing customers.

Hydro-Québec’s generation profile is predominantly made up of hydropower, with the utility boasting one of the largest hydropower systems in North America totaling around 38GW. In total, the utility claims that 99 percent of its energy is derived from renewable sources.

Québec, Canada’s French-speaking province, currently has approximately 80 operational data centers with a combined capacity of around 200MW. The utility cited skyrocketing electricity costs across the US market as a primary driver of the decision to bring in a tariff.

Several major data center operators have facilities in the province. Notable names include Vantage, which last March announced plans for a fourth facility at its QC2 campus in Québec City.

Several US states have either passed or seen bills proposed to create new rate classes for data centers, including in Georgia, Illinois, Kentucky, Kansas, Ohio, Tennessee, Missouri, Idaho, and Pennsylvania.