Proprietary data
Data Center Power & Policy in Canada
Every government action on data centers and power in Canada that we have verified: moratoriums, grid rules, incentives, tariffs and plans, with the power indicators that drive site selection.
By Amit Jain
Reviewed by Deepti Agrawal
Updated 17 October 2026
In short
As of 17 October 2026, DC Market Insights tracks 8 government actions on data centers and power in Canada, 4 of them in force. Canada has 2 restrictions on new data centers in force, the latest: Competitive process for clean power for AI and data centres (Bill 31, Energy Statutes Amendment Act).
Market snapshot
Canada power and policy: key facts
- Renewable share of electricity generation: 63.9% (2024). Rank 4 of 28 tracked countries, highest first.
- Grid emission factor: 0.10 kgCO2/kWh (2022). Rank 20 of 24 tracked countries, highest first.
- Latest change: Economic and Strategic Assessment Framework for New Data Centres and separate data centre rate class (ERO 026-0853) (Ontario Ministry of Energy and Mines, 13 Aug 2026).
- By type: 3 restriction, 2 power tariff, 1 regulation and 1 grid access.
Power indicators for Canada
Latest official figure for each indicator, with earlier years where we have them.
In force now in Canada
Restriction (2)
Competitive process for clean power for AI and data centres (Bill 31, Energy Statutes Amendment Act)
AI and data centre projects must win a competitive BC Hydro selection (2026 call for demand for emerging industries) to access clean electricity, assessed on price and on economic, community, data sovereignty and environmental benefits. Allocation targets of as much as 400 MW for AI and data centres in the first two years. Projects with a signed transmission facilities study agreement or distribution design deposit stay in the existing process. Opened 30 Jan 2026; winners expected Sep 2026.
400 MW allocation target for AI and data centres, first two years
AESO interim 1,200 MW limit on large-load (data centre) connections
The AESO set an interim limit of 1,200 MW of additional large-load capacity for projects of 75 MW or more through 2028, shared proportionally among developers meeting qualification criteria (municipal support, financial security, completed power-flow studies). The Government of Alberta states this room is now fully taken, while data centre requests on the AESO list total about 19,565 MW (30 Jul 2026); Phase 2 permanent large-load rules are still being finalized.
1,200 MW interim limit for 75 MW+ projects through 2028; fully allocated
Grid access (1)
Data Centre Regulation (Alberta Regulation 117/2026) under the Electric Utilities Act
Regulation in force since June 2026 requiring the AESO to prioritize data centre connection requests tethered to dedicated new generation or storage (bring-your-own-generation). Connection agreements are expected to build in interruptibility; in emergencies large industrial loads are reduced first. Builds on the Energy and Utilities Statutes Amendment Act, 2025, which clarified AESO authority over large new connections.
Plan or strategy (1)
Canadian Sovereign AI Compute Strategy
Federal programme of $2 billion over five years (Budget 2024) to expand domestic AI compute: AI Compute Challenge (up to $700m) for companies to build or expand commercial AI-specific data centres in Canada; up to $1bn for public supercomputing infrastructure (AI Sovereign Compute Infrastructure Program, applications open); AI Compute Access Fund (up to $300m) to help Canadian firms buy compute.
2,000 CAD m total over five years from 2024-25
Announced and proposed
Measures that are not yet in force. Status changes when the rule takes effect or is withdrawn.
Economic and Strategic Assessment Framework for New Data Centres and separate data centre rate class (ERO 026-0853)
Proposed assessment of new large data centres seeking grid connection against three pillars: economic development (jobs, investment, local suppliers), data security and digital sovereignty (preference for Canadian-owned and operated facilities), and community benefit and public trust (e.g. closed-loop cooling). A separate proposal would create a new rate class (e.g. Class C) for new data centres above a demand threshold (e.g. 1 MW), not eligible for the Industrial Conservation Initiative; existing data centres keep current rules. Comment period closed 12 Sep 2026.
Hydro-Québec request for a data centre rate (tarif CD), Régie file R-4333-2026
Hydro-Québec (Distributor) asked the Régie de l'énergie to set a new rate for data centres (rate CD), intended to reflect the cost of its new long-term supply and to manage expected data centre load growth, with minimum and maximum consumption thresholds, five-year transitional terms and an option to pay more for renewable supply; it also asks to modify rate CB for blockchain use. Requested effective date 1 Nov 2026; decision pending.
Alberta data centre levy (Financial Statutes Amendment Act (No. 2), 2025 – Bill 12)
Financial Statutes Amendment Act (No. 2), 2025 (Bill 12, royal assent 9 Dec 2025) amends the Alberta Corporate Tax Act to add a levy of up to 2% on the value of computer equipment in data centres of 75 MW or more, deductible from Alberta corporate income tax, with a lower rate for sites that bring their own generation. The Act takes effect on various dates (start of the levy not stated); Budget 2026 said it will be amended to be calculated on actual power consumption.
2 % maximum rate on value of computer equipment; applies at 75 MW or more
Ministerial approval for data centre grid connections (ERO 025-1001)
Proposed regulation under the Electricity Act, 1998 (enabled by Bill 40, Protect Ontario by Securing Affordable Energy for Generations Act, 2025): covered data centre projects would need approval from the Minister of Energy and Mines to connect or reconnect to the grid, with priority for projects serving provincial economic interests such as quality jobs and domestic data hosting. Size threshold not set (>50 MW given only as an example). Comment period closed 4 Nov 2025; no decision posted.
Timeline of data center and power policy in Canada
| Date | Action | Type | Status | Authority |
|---|---|---|---|---|
| 13 Aug 2026 | Economic and Strategic Assessment Framework for New Data Centres and separate data centre rate class (ERO 026-0853) Ontario | Regulation | Proposed | Ontario Ministry of Energy and Mines |
| 9 Jun 2026 | Data Centre Regulation (Alberta Regulation 117/2026) under the Electric Utilities Act Alberta | Grid access | In force | Government of Alberta / Alberta Electric System Operator (AESO) |
| 18 Feb 2026 | Hydro-Québec request for a data centre rate (tarif CD), Régie file R-4333-2026 Quebec | Power tariff | Proposed | Hydro-Québec / Régie de l'énergie du Québec |
| 30 Jan 2026 | Competitive process for clean power for AI and data centres (Bill 31, Energy Statutes Amendment Act) British Columbia | Restriction | In force | BC Ministry of Energy and Climate Solutions / BC Hydro |
| 9 Dec 2025 | Alberta data centre levy (Financial Statutes Amendment Act (No. 2), 2025 – Bill 12) Alberta | Power tariff | Announced | Alberta Treasury Board and Finance |
| 5 Sep 2025 | Ministerial approval for data centre grid connections (ERO 025-1001) Ontario | Restriction | Proposed | Ontario Ministry of Energy and Mines |
| 4 Jun 2025 | AESO interim 1,200 MW limit on large-load (data centre) connections Alberta | Restriction | In force | Alberta Electric System Operator (AESO) |
| 4 Dec 2024 | Canadian Sovereign AI Compute Strategy | Plan or strategy | In force | Innovation, Science and Economic Development Canada (ISED) |
How Canada compares
Latest official figures for the countries we track.
| Country | Industrial power price | Renewable share | Grid emission factor | Restrictions in force | Incentives in force |
|---|---|---|---|---|---|
| Argentina | — | 19.6% (2025) | 0.28 kgCO2/kWh (2022) | 0 | 2 |
| Australia | — | 39% (2025) | — | 0 | 2 |
| Bangladesh | — | 2% (2025) | — | 0 | 0 |
| Belgium | 183 USD/MWh (2025) | 34.3% (2025) | 0.19 kgCO2/kWh (2024) | 0 | 0 |
| Brazil | — | 86.8% (2025) | 0.07 kgCO2/kWh (2025) | 0 | 1 |
| Canada | — | 63.9% (2024) | 0.10 kgCO2/kWh (2022) | 2 | 0 |
| Chile | — | 66% (2025) | 0.24 kgCO2/kWh (2023) | 0 | 0 |
| Colombia | — | — | 0.22 kgCO2/kWh (2024) | 0 | 2 |
| Denmark | 134 USD/MWh (2025) | 81.5% (2024) | 0.11 kgCO2/kWh (2024) | 1 | 0 |
| Ecuador | — | — | 0.16 kgCO2/kWh (2024) | 1 | 0 |
| Finland | 58.4 USD/MWh (2025) | 57% (2024) | 0.03 kgCO2/kWh (2025) | 0 | 0 |
| France | 104 USD/MWh (2025) | 27% (2025) | 0.02 kgCO2/kWh (2025) | 0 | 1 |
| Germany | 180 USD/MWh (2025) | 58.8% (2025) | 0.34 kgCO2/kWh (2025) | 1 | 0 |
| India | 82.1 USD/MWh (2025) | 28.7% (2026) | 0.68 kgCO2/kWh (2025) | 0 | 5 |
| Indonesia | 62.9 USD/MWh (2024) | 16.3% (2025) | 0.68 kgCO2/kWh (2024) | 0 | 1 |
| Ireland | 234 USD/MWh (2025) | 41.3% (2024) | 0.20 kgCO2/kWh (2025) | 2 | 0 |
| Japan | — | 23.1% (2024) | 0.45 kgCO2/kWh (2024) | 0 | 0 |
| Kazakhstan | — | 14.6% (2025) | 0.81 kgCO2/kWh (2025) | 0 | 0 |
| Malaysia | 105 USD/MWh (2026) | 21% (2025) | 0.74 kgCO2/kWh (2024) | 1 | 1 |
| Mexico | — | — | 0.44 kgCO2/kWh (2023) | 0 | 0 |
| Nepal | — | — | — | 0 | 0 |
| Netherlands | 148 USD/MWh (2025) | 49% (2025) | 0.20 kgCO2/kWh (2024) | 4 | 0 |
| Pakistan | 97.5 USD/MWh (2026) | 34.7% (2025) | — | 0 | 1 |
| Peru | — | 62.6% (2025) | — | 0 | 1 |
| Russia | — | 17.6% (2025) | — | 2 | 0 |
| Singapore | 189 USD/MWh (2025) | 2.1% (2024) | 0.40 kgCO2/kWh (2024) | 0 | 0 |
| South Korea | — | 9.8% (2025) | — | 0 | 0 |
| Sri Lanka | — | 60.2% (2025) | — | 0 | 0 |
| Sweden | 78.5 USD/MWh (2025) | — | 0.06 kgCO2/kWh (2023) | 0 | 0 |
| United Arab Emirates | 120 USD/MWh (2026) | 8.8% (2024) | 0.47 kgCO2/kWh (2024) | 0 | 0 |
| United Kingdom | 234 USD/MWh (2026) | 52.1% (2025) | 0.15 kgCO2/kWh (2026) | 1 | 1 |
| United States | 86.2 USD/MWh (2025) | 24% (2025) | 0.35 kgCO2/kWh (2023) | 0 | 1 |
| Uzbekistan | 83.3 USD/MWh (2026) | 19.4% (2025) | — | 1 | 0 |
Questions
Is there a data center moratorium in Canada?
Yes. 2 restrictions on new data centers are in force in Canada: Competitive process for clean power for AI and data centres (Bill 31, Energy Statutes Amendment Act) (British Columbia) and AESO interim 1,200 MW limit on large-load (data centre) connections (Alberta).
How much of Canada’s electricity is renewable?
Renewables supplied 63.9% of electricity generation in Canada in 2024.
Where does this data come from?
Each action comes from a page we opened: a law, regulation, gazette notice, ministry or regulator release, grid operator notice or investment agency page, and only when official text is not available a company or trade publication. A second analyst re-opens the source before an item is published. Government sources are linked on the page; all sources come with the Excel data.
What counts as a restriction or moratorium?
A government or grid operator rule that stops, pauses, caps or conditions new data center capacity or grid connections, for a country or a region within it. Proposals are shown as proposed until they take effect.
How are power prices compared?
We use each country’s official statistics for industrial or non-household electricity, converted to US dollars per MWh at the average rate for the year where needed, and show the year and source. Contract prices for data centers can differ.
How often is it updated?
Countries are reviewed on a rolling schedule and changes are added as they are announced. Each item shows the date of the action.
Global capacity
How much data center capacity does Canada have?
Installed capacity in MW (IT load), its share of the region, the largest tracked sites and the outlook to 2035.
Choosing a market or a site?
Our analysts prepare country briefings on power, grid access, incentives and permits, with every source, in Excel.