Hi there,
The AI data centre race is picking up in Canada, with enough projects in the pipeline to almost 10x existing capacity. The question now is whether the grid can keep up - and who gets to plug in first.
This week, we look at BC's new process that makes data centres compete for grid access, and how constrained grids are creating a premium for clean compute.
Elsewhere in climate tech:
Irréversible closes a pre-seed round for ultra-low-power AI chips
Cyclic Materials opens a second rare earths facility in the US
Canada opens the door to South Korean carmakers.
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POLICY
BC makes AI data centres compete for power
Site Source: BC Hydro
What happened: British Columbia launched a competitive bid process for AI and data centre developers, forcing data centres to audition for access to the grid based on economic and environmental impact.
The details: BC Hydro will take applications for 400MW of power over two years - less than the average size of a single project in Alberta (540MW).
The legislation is aimed at balancing data centres’ need for clean, firm power with maintaining affordability and reliability of the grid.
What’s the context: Utilities across Canada are facing unprecedented electricity demand from electrification, population growth, industry, and AI infrastructure. Data centres want +50MW connections in months, while utilities plan in years.
Different strategies are emerging to respond to the crunch:
B.C. is rationing 400MW through competitive bids and prioritizing requests based on economic and environmental impact.
Ontario is also prioritizing projects by economic impact rather than accepting all requests.
Alberta, which has an open market system, is actively recruiting more projects (creating demand for natural gas) and fast-tracking those that bring their own power.
Why it matters: Constrained grids are contributing to a clean compute premium. Energy efficiency, grid services, heat recovery and water efficiency can unlock faster connection times - turning sustainability into competitive advantage.
But demand growth can also unlock supply with new frameworks. In the U.S., frameworks like transition tariffs and power purchase agreements let data centres pay for generation and grid upgrades in exchange for access, converting hard limits into clean energy opportunities.
Not so simple:
400 MW may undershoot demand, pushing projects elsewhere
Competitive processes add 18+ months of timeline uncertainty
New financing models require regulatory appetite utilities don't always have
The bottom line: B.C. is betting on demand management with finite supply; Alberta's betting on expansion. The question is whether constrained provinces can leverage rising demand as leverage to build more capacity faster - and incentivize a clean compute advantage.
Does BC’s approach create opportunities or headwinds for clean energy and sustainable AI infrastructure? Hit reply or leave a comment to share your take.
CLIMATE CAPITAL
🤖 Irréversible (Sherbrooke, QC) closed a pre-seed round led by Quantacet to advance its ultra-low-power AI chips for edge and autonomous systems.
🥔 Cellar Insights (Calgary, AB) raised $500k from SVG Ventures Thrive to expand its potato-storage monitoring technology across North America.
🪰 Oberland Agriscience secured $1 million from the Halifax Climate Investment, Innovation and Impact (HCi3) as part of a $10 million round to scale insect larvae feed production.
IN THE FIELD
🏢 vadiMAP announced a strategic partnership to offer its building decarbonization planning platform to Énergir customers.
🌊 Ocean Startup Project launched its sixth Lab2Market Oceans/Validate cohort with 18 teams building solutions across clean propulsion, remote monitoring, and carbon removal.
♻ Cyclic Materials is building its second US rare earth recycling campus in South Carolina, capable of processing up to 6,000 tonnes per year.
⚛ Ontario Power Generation completed refurbishment of the Darlington nuclear power plant ahead of schedule and under budget.
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PODCAST
How data centres are reshaping the grid
Will data centres drive up everyone’s bills? Or pull forward billions of investment in clean energy and new technology?
We sat down with Sam Hasty, a partner at climate tech fund Active Impact Investments, to go beyond the headlines and unpack what's actually happening with data centre energy demand and what they’re seeing in the market.
🎧 Add to your queue: Spotify | Apple Podcasts | Wherever you get podcasts
NEWS
📡 Signals & Currents
Let’s make a deal: Canada signed an MOU with South Korea on industrial cooperation and potential investment in auto and battery manufacturing
EV spending fell 35% last year, contributing to a 8.8% drop in Canadian energy transition investments
South Korean companies hold about 12% of the market but don’t actually make cars in Canada
An ICE raid at a Hyundai plant in the US forced a pause in construction
→ Why it matters: Policymakers are searching for ways to stabilize the auto sector which is under pressure from US tariffs, Chinese competition and a drive for EV adoption. Expect more deals like this as Canada diversifies away from reliance on the U.S.
Renewables dry up: Renewable energy projects in Alberta have collapsed 99% since the province put a seven month moratorium on new projects and introduced new restrictions on where new projects can be built. Nova Scotia now leads thanks to a new corporate renewable energy procurement tool.
New nukes: Saskatchewan is considering building new large scale nuclear plants alongside existing plans for SMRs. The province is home to about 22% of the global uranium production.
Ring of Fire: Ontario is fast-tracking an electricity transmission line to the Ring of Fire in Northern Ontario to support future mining development. The line would add 350-700MW of new, mostly hydroelectric power.
QUICK HITS
Canada’s competitive edge on carbon removal
EU’s carbon tariffs are pushing India towards green steel
The Trump admin is walking back plans to kill a key climate law
UK and Europe are building an offshore wind mega-project in the North Sea
Is it time for climate negotiations to adopt a two-speed approach?
The great climate software consolidation
India bets $2.4B on a push for carbon capture
Alt proteins get their MrBeast moment
COMMUNITY
🚀 Adaptech Accelerator: MaRS’s Adaptech Accelerator is designed to help ventures speed up the development of climate change adaptation and resilience solutions. Apply by Feb 23rd.
🗓 World Ocean Summit & Expo: Fostering new partnerships, action-plans and collaborations to accelerate ocean solutions. March 4-5th, Montreal
💻 Dispera is hiring a Director of Finance to lead day-to-day finances and supporting its growth phase.
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