Higher Electricity Rates May Not Deter Data Centres, Consultant Says
Higher electricity prices may not discourage companies from building new data centres as demand for power continues to grow, a consultant hired by Hydro-Québec told the province’s energy regulator on Friday. The comments came as the first phase of hearings into the utility’s proposal to nearly double electricity rates for large data centres wrapped up in Montreal, with lawyers representing Google and an environmental coalition questioning consultants about their study of electricity markets across North America. Hydro-Québec is asking the province’s energy regulator, the Régie de l’énergie, to approve a new rate averaging 13 cents per kilowatt hour for data centres requiring more than five megawatts of power, nearly double the average 6.82 cents currently paid by major industrial electricity users.
A consultant hired by Hydro-Québec suggested that rising electricity prices may not deter companies from building new data centres due to increasing power demand. This statement was made during hearings concerning Hydro-Québec’s proposal to nearly double electricity rates for large data centres. The utility is seeking approval for a new rate averaging 13 cents per kilowatt hour for facilities requiring over five megawatts of power.
- A consultant believes higher electricity prices may not discourage new data centre construction.
- Data centre demand for power continues to grow.
- Hydro-Québec is proposing to nearly double electricity rates for large data centres.
- The proposed new rate averages 13 cents per kilowatt hour, up from 6.82 cents.
- Hearings are being held by the Régie de l’énergie, the province’s energy regulator.
- Lawyers for Google and an environmental coalition questioned consultants during the hearings.
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