Could Canadian Families End Up Paying the Price for AI Data Centre Energy Use?
- The White Hatter
- 18 hours ago
- 3 min read
Caveat - Earlier this year, we published an article titled “AI Is Thirsty & Hungry: The Hidden Environmental Costs of Artificial Intelligence” (1). This follow up looks at another side of the issue, the potential financial impact data centres may have on families. When it comes to technology, the internet, and social media, we believe the conversation needs to go beyond the familiar themes of privacy, safety, and security. Those topics remain important, but there are broader, higher-level discussions that parents and educators rarely hear about, yet are just as critical. This article takes that 50,000 foot view, offering a perspective we believe deserves more attention.
When parents open their monthly utility bill and see another increase, the frustration is real. Rising energy costs hit hardest for households already balancing groceries, housing, and childcare. In British Columbia, for example, BC Hydro customers will face a 3.75% rate hike in both 2025 and 2026. (2) For many families, these kinds of increases feel like one more unfair burden.
At the same time, Canada is experiencing rapid growth in data centres, driven largely by the explosion of artificial intelligence (AI). While these facilities fuel technological progress, they are also massive consumers of electricity. A single large data center can consume as much power as 50,000 homes per day (3) The question Canadian families should be asking is, “Who should pay for this surge in energy demand?
Other countries already provide a warning that we should be listening to here in Canada. In the United States, watchdogs estimate that up to 70% of last year’s electrical cost increases were linked to data center demand. (4) In Ireland, residential electricity rates are expected to climb between 8% and 21%, much of it attributed to the strain data centres place on the grid. (5)
These international examples are like canaries in the coal mine. They show what can happen when large corporations, many of them foreign-owned, draw on local power supplies without shouldering their fair share of the costs. The result? Families end up footing the bill.
Fairness should be simple, those who use the most should contribute the most. Yet under current structures, data centres are not paying in proportion to their enormous impact on national energy systems. If they are considered “critical infrastructure,” as some countries have designated, then their financial contribution should reflect that responsibility.
When these facilities require new substations, expanded transmission lines, or emergency backup generation, the cost of that infrastructure should not be passed along to families. Otherwise, everyday households will carry the costs of a demand they didn’t create, while the corporations driving the consumption reap the benefits.
This isn’t just about today’s household budgets, it’s about the energy system our children will inherit tomorrow. Energy equity means ensuring that both the benefits and the burdens of the grid are shared fairly.
In some countries, families are struggling with higher electricity bills while large companies enjoy reduced commercial rates. That imbalance not only hurts household finances but also undermines sustainability by discouraging responsible energy use at the corporate level.
At present, Canada has about 239 small data centres (6) , but large scale projects are being planned or built across Quebec, Ontario, Alberta, and British Columbia (7)(8)(9)(10). If the pattern we see internationally repeats here, Canadian families could soon face higher costs tied directly to the growing footprint of these AI data facilities.
As parents and caregivers, advocating for energy equity isn’t just about protecting your own monthly budget. It’s also about ensuring that the next generation isn’t saddled with the financial and environmental costs of decisions made today. There is a movement to have these big companies build their own power generation plants, a good example is in Louisiana where Meta is building a $10 billion dollar data center. This data center Meta is building will be powered by three huge natural gas-fire power plants, what will produce 2.25 gigawatts of electricity which will only fill half their power need, so where will the other half come from? (11) Probably the public power grid. Also, what kind of environmental impact with this natural gas powered behemoth have on the environment?
Technology and innovation bring undeniable benefits, but the costs of powering these advances must be distributed fairly. Canadian families should not be forced to subsidize the electricity demands of billion-dollar corporations. Energy equity is not just a matter of fairness today, it is a matter of responsibility for tomorrow.
Digital Food For Thought
The White Hatter
Facts Not Fear, Facts Not Emotions, Enlighten Not Frighten, Know Tech Not No Tech
References
9/ https://betakit.com/bell-to-build-six-ai-data-centres-in-canada-as-telcos-compete-on-infrastructure/
