Provincial government says move is necessary to protect grid stability, but industry experts argue it’s a short-sighted approach that ignores the benefits of crypto mining.
The government of British Columbia (BC) is set to ban new crypto mining connections to its hydroelectric power grid, citing concerns over surging electricity demand and limited economic benefits from the sector. The decision, announced Monday, comes as part of a broader strategy to balance energy supply for both traditional and emerging industries like artificial intelligence (AI) and data centers.
According to the provincial statement, the new legislation—effective fall 2025—will introduce “limits on the power available for data centers and AI” and a permanent ban on new BC Hydro connections for cryptocurrency miners.
BC Hydro, the state-owned utility that serves about 95% of the province’s population, said the policy will help preserve the reliability of its grid and maintain “clean, affordable energy” across the region.
“We’re seeing unprecedented demand from traditional and emerging industries. The Province’s strategy empowers BC Hydro to manage this growth responsibly,” said Charlotte Mitha, President and CEO of BC Hydro.
While the government expressed optimism toward supporting AI and data center growth, it labeled crypto mining as providing “disproportionate energy consumption and limited economic benefit.”
However, industry experts argue that this view oversimplifies the situation. Daniel Batten, a well-known environmental advocate for Bitcoin, has repeatedly emphasized that crypto mining can contribute positively to renewable energy development, helping stabilize grids and utilize surplus clean power.
British Columbia first introduced a temporary 18-month suspension on new crypto mining grid connections in 2022, aiming to evaluate the industry’s long-term impact. That moratorium has now evolved into a permanent ban.
Analysts warn that the move could push crypto miners to relocate operations to more energy-friendly provinces or countries, potentially costing BC innovation and investment opportunities in the digital economy.
While British Columbia’s decision reflects growing caution about energy allocation, critics say it risks sidelining a global sector that could otherwise play a constructive role in clean energy innovation. The debate highlights an ongoing challenge for policymakers—how to balance sustainability goals with technological progress in the evolving landscape of digital finance.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.