British Columbia, Canada, plans to limit AI data center electricity use and permanently ban cryptocurrency mining

On October 21st, Bloomberg reported that the British Columbia (BC) government proposed new legislation on Monday that would restrict electricity use by artificial intelligence (AI) data centers and permanently ban new cryptocurrency mining projects.

This move marks a clear trade-off between the province's allocation of electricity resources and the development of emerging industries. The BC Ministry of Energy stated in a statement that it will prioritize grid access for traditional industries such as mining and natural gas facilities, believing that these sectors can create more jobs and economic benefits for the local community, more directly benefiting British Columbia residents.

If passed, the legislation would further regulate the development of power-intensive digital industries, particularly amidst growing grid capacity constraints and the pressure of energy transition.

The Minister of Energy emphasized in a press release that the government must ensure that limited electricity resources are used "where they will best advance the province's economy and people's well-being." While industries like AI and cryptocurrency represent high-tech developments, they consume significant amounts of electricity and contribute relatively little to employment and local tax revenue, making them outside the scope of current policy incentives.

Once this legislation comes into effect, British Columbia will become the first province in Canada to implement a permanent ban on cryptocurrency mining and set limits on electricity consumption by artificial intelligence computing centers. This is expected to have a certain impact on the development path of North America's digital industry.