Data centre regulation in Québec: From honeyed promise to iron control

Since 2016, Québec has actively positioned itself as a prime destination for data centres, leveraging its abundant renewable energy, competitive electricity rates, and ambition to strengthen digital sovereignty. Supported by a government-owned utility that controls electricity generation, transmission and distribution, the province offered a compelling value proposition: low-cost power and a naturally cold climate that reduces cooling costs.

This strategy has been successful. The number of data centres has grown significantly in recent years. However, this rapid expansion, along with energy transition and scarcity challenges, has begun to strain Québec’s energy resources, prompting a noticeable policy shift. What initially appeared to be a favourable and predictable environment is now evolving into a more restrictive and tightly controlled regulatory framework.