AI Data Centres Face Grid Delays and Public Opposition in Canada
Canada's grid interconnection queues, stretching for years, are delaying AI data centre projects as public opposition grows.
The rapid expansion of AI data centres is straining Canada's electricity grid, with interconnection delays costing an estimated $3 million in lost revenue per megawatt each month. Long grid connection queues and local capacity constraints are holding up projects nationwide, even as the federal government promotes the buildout as part of its sovereign-compute agenda. In New Brunswick alone, NB Power has confirmed 10 data centre applications requiring up to 900 megawatts of power, though not all may be approved to protect grid stability and customer rates.
Hydro-Quebec forecasts a 133% increase in energy consumption from data centres between 2024 and 2030 and proposes doubling electricity rates for large facilities. Meanwhile, Meta has announced a $13 billion AI data centre in Sturgeon County, Alberta, with a one-gigawatt power demand. The queue to connect to the grid in popular markets can stretch for many years, forcing developers to seek alternative solutions.
Flexibility solutions emerge to accelerate interconnection
To bypass grid delays, the industry is turning to on-site energy systems and operational flexibility. This can include adjustments to cooling, power distribution, compute workloads, and the deployment of on-site batteries or generators. Such flexibility enables quicker interconnection and helps maintain overall grid stability as more large loads connect.
Expert Jake Elder stated that most projects seeking faster interconnection rely on on-site power, either front-of-meter or behind-the-meter, to avoid complex customer negotiations. Aligned Data Centers signed a deal with Portland General Electric for 2025 to install a 31-megawatt, 62-megawatt-hour battery specifically to accelerate its grid connection. Elder reported seeing multiple similar private bilateral agreements using on-site battery solutions. Industry panelists agree that most data centres coming online by 2030 will incorporate multiple such flexibility solutions.
Public opposition intensifies in key regions
Community pushback is adding another layer of complexity. In New Brunswick, citizen activist Chris Watson and his grassroots group Save Lorneville oppose data centre projects in Saint John and demand a moratorium until stronger policies are in place. Opportunities New Brunswick released correspondence showing multiple proposals, though none have acquired final public approval. The backlash has been intense near the site of the Beacon project.
This month, Fredericton-based Faster Than Light publicly introduced a $2.7 billion, 375-megawatt data centre proposal. Separately, Cross River Infrastructure Partners requested 50 megawatts for a large-scale campus in the Spruce Lake Industrial Park. Political science professor Thomas Bateman noted public opposition stems from both AI anxiety and concerns over massive energy consumption. Polling by the Angus Reid Institute, conducted September 8-16, found 64% of Canadian adults support limiting large data centre development.
Policy and investment frameworks take shape
Provincial governments are developing policy frameworks to manage the growth, viewing data centres as opportunities for tax revenue, private investment, and job creation. These facilities range from small micro data centres to hyperscale campuses consuming power comparable to small cities. The provincial government has sought public feedback as it crafts its approach, balancing economic potential with grid reliability.
The Beacon Data Centers project remains under regulatory review as a test case for integrating on-site power with grid interconnection.
