The rising demand for energy, in light of the booming popularity of AI, is adding to the trend of electrification. Data centres are increasingly being built to keep up with the need, with 16 projected to be completed in Ontario over the next decade. And the trend isn’t unique to just the province.
Beverly Nollert is the senior director of power system planning at Independent Electricity System Operator, which manages Ontario’s power system. She told CTV’s Your Morning that population and economic growth in Ontario are leading to the boom in electricity demand and, in turn, the need for more data centres.
On top of that, there’s the electrification of industrial buildings, homes and the transportation sector.
“We are expecting a significant increase in electricity demands over the next several decades as a result of all these factors,” she said.
While data centres aren’t new, the explosive growth in the digital economy is driving the volume, scale and pace of electricity demands. Nollert said AI, cloud computing, digital services, as well as cybersecurity requirements are impacting that growth, including the need to store data locally.
“To provide a perspective on how big this could be, we are seeing some very large proposals for individual data centres, some that have all of the similar requirements for all of the demand for a southern Ontario city,” she said. “That’s the scale that we’re planning for.”
In Ontario, electricity demand is expected to grow by 75 per cent by 2050, higher than the 60 per cent that was previously forecast. It’s a trend that’s playing out nationally and globally too.
“This is not something that’s unique to Ontario,” said Nollert. “We are seeing this when we speak to our peers all across Canada and the U.S. and in fact globally.
Nollert stressed there’s a plan in place in Ontario to leverage every type of supply resource available, to allow for growth. That includes nuclear, renewable energy like wind and solar, biomass, hydroelectric, energy storage and natural gas.
“On top of all of that, we’re making recommendations for new transmissions infrastructure that allow us to transport the electricity from where it’s generated to where it’s consumed by customers,” she said.
As for whether that will lead to higher hydro bills for customers, Nollert said that they plan to keep a reliable and affordable electricity system. Part of this includes procurements that allow for competition, ensuring Ontarians get the best prices.
“We evaluate cost effectiveness as part of all of our plans and many of our actions take that to heart,” she said.
In October, the B.C. government proposed changes to its energy rules, which would force companies from certain industries to battle for access to a set amount of power. The new policy would put natural resources and manufacturing projects first, while AI, data centres and hydrogen-for-export projects would have to bid for their power.
With files from The Canadian Press
