The government of British Columbia is set to ban new crypto mining connections to the hydroelectric grid, citing unprecedented electricity demand.
In a statement on Monday, the province outlined new legislation designed to boost the economy while helping the state-owned utility, BC Hydro, manage power availability.
“There are significant opportunities in British Columbia’s traditional natural resource sectors, including mining, natural gas, and LNG, as well as in emerging areas like data centers and artificial intelligence (AI). The success of major projects depends on access to reliable, clean electricity at competitive industrial rates,” the statement read.
Under the regulatory changes, which take effect in fall 2025, the province will impose limits on power for data centers and AI operations and enforce a permanent ban on new BC Hydro connections for crypto mining.
“We’re seeing unprecedented demand from both traditional and emerging industries. This strategy allows BC Hydro to manage growth responsibly, keeping the grid reliable and ensuring a clean, affordable energy future,” said Charlotte Mitha, president and CEO of BC Hydro.
BC Hydro supplies power to over 5 million people—around 95% of British Columbia’s population.
The provincial government took a more supportive stance toward data centers and AI, emphasizing that it wants these sectors to expand “in a manner that results in the greatest benefit to people in British Columbia.”
In contrast, the ban on new hydro grid connections for crypto miners was justified in the announcement by citing the sector’s “disproportionate energy consumption and limited economic benefit.”
Crypto mining analysts push back
Despite criticism from governments and organizations over energy use, many in the crypto mining industry have been challenging these claims. Bitcoin environmentalist Daniel Batten, for example, has actively worked to correct negative narratives around crypto mining and highlight how Bitcoin mining can align with energy transition and climate action initiatives.
Outright ban long in the making
While other Canadian regions, like Vancouver, have been positioning themselves as “Bitcoin-friendly,” British Columbia has been steadily moving toward restricting crypto miners’ access to its power grid.
The province initially implemented an 18-month temporary ban on new crypto mining connections in December 2022, aiming to use the period to develop a permanent framework balancing the needs of miners, residents, and businesses.
The latest announcement, however, appears to have evolved that temporary measure into a full, permanent ban.
It remains unclear how this will affect existing operations in the region, including firms like Bitfarms and Iren, which run Bitcoin mining facilities or AI-focused data centers in British Columbia.
