Canada Province Shuts Door on New Crypto Mining Ventures — Here’s Why

Canadian province British Columbia has moved to ban new cryptocurrency mining projects, tightening control over how its clean electricity is used and ensuring the province’s vast hydroelectric power benefits higher-value industries.

The province’s energy ministry said on Monday that BC Hydro, a government-owned utility, will no longer accept new grid connection requests for crypto mining.

The move comes after a two-year moratorium introduced in 2022, which officials say will now become a long-term policy aimed at protecting energy supplies and avoiding grid strain.

Move Aims To Protect Electricity Supply For Job-Intensive And Revenue-Generating Projects

BC, a global exporter of natural resources such as lumber, minerals and hydropower, plans to redirect available electricity toward industries that create more jobs and revenue for local communities. Future grid connections will be prioritized for sectors like natural gas processing, hydrogen production and manufacturing.

The government said cryptocurrency mining consumes a large amount of energy. However, it provides little economic benefit to the province. Officials believe that redirecting electricity to industries with higher employment and investment potential will create greater public value.

In comparison, pending crypto projects would have demanded more than 11,700 gigawatt-hours of power each year. That is enough electricity to supply hundreds of thousands of homes across British Columbia.

Province Targets Balanced Grid Expansion Linking Energy Supply To Job Creation

The permanent restriction is part of a broader set of energy policy reforms planned for late 2025. These reforms will determine how industrial electricity is distributed across the province. They will also set rules for fast-growing, high-consumption sectors such as data centers and artificial intelligence.

In early 2026, BC Hydro will begin a competitive bidding process to allocate 400 megawatts of power. Of this, 300 megawatts will go to AI projects and 100 to general data centers. The process will run over two years. Meanwhile, traditional sectors such as mining, oil and gas, forestry and manufacturing will continue to have unrestricted access to industrial power, the ministry said.

By 2026, construction on new transmission lines is expected to start. The expansion will continue through 2034 to strengthen BC’s grid and meet rising industrial demand. Officials said this long-term approach will help link power development with the province’s goals of job creation and economic diversification.

BC’s Move Reflects Global Shift Toward Powering AI Over Energy-Hungry Crypto Mining

The moratorium introduced in 2022 followed a sharp rise in crypto mining activity across British Columbia. Many companies were drawn to the province by its low-cost and renewable hydroelectric power.

Soon after, BC joined other provinces such as Manitoba and Quebec in restricting crypto-related electricity use. The decision came amid growing environmental concerns and the instability of digital asset markets.

At the time, policymakers warned that crypto mining consumed vast amounts of energy. They feared it could divert clean power away from households, hospitals and critical industries. Moreover, they questioned whether the largely automated mining operations brought any real employment or economic value to local communities.

Since then, the government’s priorities have evolved. Officials now see greater long-term benefits in supporting AI and industrial projects that rely on stable electricity and generate stronger tax and job contributions. They say the move aligns with BC’s broader climate objectives and its transition toward a more resilient economy.