By Jeffrey A. Newman Esq.
United States data centers are consuming significant and growing amounts of electricity driven
by artificial intelligence needs and crypto mining. Electricity consumption from U.S. data
centers, which is crucial for powering generative artificial intelligence (AI) models such as
ChatGPT and Gemini, is expected to increase by 130% by the decade’s end, according to a new
study by the International Energy Agency (IEA). Texas presently has the highest data centner
power consumption of about 8,000 megawatts to its facilities followed by Virginia with almost
7,000 Megawatts. Goldman Sachs Research predicts that AI-driven data centers will consume an
additional 200 terawatt-hours of electricity by 2030. Some sources warn of grid instability and an
inability of the grid to meet these needs without additional sources of power. Based on published
reports, China is ahead in its production of inexpensive electricity for its data centers, and this is
an important factor in what our country must do now to meet our electrical needs and modernize
our electrical grid capacities.
Canada produces significant amounts of electricity from its hydropower plants. ~ 60 per cent of
Canada’s electricity comes from “waterpower,” which is utilized extensively in provinces and
territories nationwide. From the near-ocean rivers in Nova Scotia to the iconic Niagara Falls in
Ontario to the meandering mountain streams of British Columbia, Canada’s hydropower use
showcases its commitment to renewable energy. Hydro-Québec’s extensive network of 61
hydroelectric dams has a combined capacity of 38,400 megawatts, accounting for over half of the
Canadian total. Hydropower accounts for 95.73% of the supply sold by the Quebec Crown-
owned utility.
Canada is among the world’s few developed countries that predominantly rely on clean hydro
energy. In 2022, the electricity generation composition was almost unchanged from the previous
year: hydro (61.3%), nuclear (12.9%), fossil fuels (19.2%), wind (6.1%), and solar (0.5%). Other
sources, such as geothermal and tidal waves contributed with less than 0.2%. British Columbia,
Manitoba, Newfoundland and Labrador, Prince Edward Island, and Yukon systems rely on hydro
for 89% to 95% of power generation. Coal-based power generation has been eliminated in
Ontario and Québec. Alberta and Saskatchewan are the only provinces relying primarily on fossil
fuels and together generate over 70% of all Canada emissions from power generation supplying
electricity to several of our states but stopped when the tariffs were enacted. Before that, for
example in 2023, the US imported $3.2b worth of electricity from Canada, highlighting a strong
but limited cross-border trade. Canada’s total installed electrical generation capacity is
approximately 149,000MW in 2021, projected to reach 170,000MW by 2035.
Canada has substantial electricity to sell to others as its production is abundant. In 2024, the
estimated US AI data center load (35,000MW) which represent nearly 23.5% of Canada’s
current generation capacity. If a worthwhile and deal could be struck between the U.S. and Canada, this could afford the U.S. and data companies the needed source of power and
the time to build on-site and off-site energy alternatives expanding our grid capacity and
distribution mechanisms. Such a deal might be quite valuable to Canada as well, which could
help it build new hydro power sources, which reports say are in line with Canadian plans to
expand this valuable resource. This means that, in theory, if Canada dedicated a substantial
portion of its total electricity output to the US for AI infrastructure, while covering its domestic
needs, it could cover a significant fraction of projected US AI data center needs.
Jeffrey Newman is a whistleblower lawyer. His website is www.JeffNewmanLaw.com and
he can be reached at Jeff@Jeffnewmanlaw.com or at 978-880-4758
