The government of British Columbia is taking action to prohibit additional cryptocurrency mining connections to its hydroelectric power grid due to an unprecedented surge in electricity demand.
In a statement issued on Monday, officials highlighted a strategy aimed at stimulating economic growth and enhancing the capacity of BC Hydro, the state-operated utility provider.
“There are significant opportunities in British Columbia’s traditional natural resource sectors, including mining, natural gas, and LNG, as well as in emerging fields like data centers and artificial intelligence (AI). The success of major projects is contingent on access to reliable, clean electricity at competitive rates.”
As part of upcoming regulations set to commence in the fall of 2025, there will be limitations on electricity access for data centers and AI, alongside a permanent prohibition on new hydro connections for crypto miners.
Hydro power center in British Columbia. Source:
Hydro power center in British Columbia. Source: British Columbia Government
“We’re witnessing remarkable demand from both traditional and emerging sectors. The Province’s strategy enables BC Hydro to handle this growth responsibly, ensuring our grid remains reliable and our energy future clean and affordable,” stated Charlotte Mitha, president and CEO of BC Hydro.
BC Hydro serves over 5 million inhabitants, representing approximately 95% of the local populace, according to its website.
The BC government adopts a more optimistic approach towards data centers and AI compared to crypto mining, indicating its intention to foster growth in these areas in a way that maximizes benefits for British Columbians.
However, for crypto, the newly outlined ban is justified by the government as a response to its “disproportionate energy consumption and limited economic advantages.”
Crypto mining analysts challenge the narrative
While some sectors criticize crypto mining over energy usage, many industry advocates strive to counteract this narrative.
Individuals like Daniel Batten have been active in rectifying misconceptions and advocating for a more integrated approach to incorporate Bitcoin mining within energy climate action.
Long-anticipated ban
Unlike British Columbia, other Canadian provinces like Vancouver have aimed to become “Bitcoin-friendly,” while BC has sought to restrict crypto miners’ access to its electricity supply.
The initial 18-month ban on new connections was first established in December 2022 to allow for the creation of a balanced, permanent framework for cryptocurrency mining, residents, and businesses alike.
Ultimately, this has progressed into an outright ban with the latest announcement.
The repercussions for existing companies, including Bitfarms and Iren, which operate Bitcoin mining or AI-related data centers in the region, remain to be seen.
