British Columbia Bans New Crypto Mining to Free Up Power for Job-Creating Industries

British Columbia has permanently banned new cryptocurrency mining operations from accessing its electricity grid, joining a global trend of jurisdictions curbing energy-intensive digital activities to prioritize industrial and economic development. The province's government announced the move on October 21, 2025, as part of a broader energy policy overhaul aimed at managing surging electricity demand and ensuring clean power supports job-creating sectors[1].

The ban, which formalizes a 2022 moratorium[3], prohibits BC Hydro-the province's state-owned utility-from approving new grid connections for crypto mining. This decision follows growing concerns over the sector's disproportionate energy consumption and limited economic benefits. "Cryptocurrency mining drains large amounts of power but adds little value," said British Columbia's energy ministry in a press release[2]. Instead, the province will prioritize electricity for industries like natural gas processing, hydrogen production, and mining, which generate more jobs and tax revenue[4].

To address rising demand from emerging sectors, British Columbia will also impose caps on power availability for AI and data centers. Starting in January 2026, BC Hydro will allocate 300 megawatts for AI projects and 100 megawatts for general data centers through a competitive bidding process[1]. This structured approach aims to prevent grid strain and ensure clean energy supports "projects that deliver the greatest benefit to British Columbians," said Energy Minister Adrian Dix[6]. For context, Meta's new Texas data center alone could consume 1 gigawatt of power[2], underscoring the scale of demand the province seeks to manage.

The policy shift aligns with infrastructure investments, including the accelerated construction of the $6 billion North Coast Transmission Line, which will expand grid capacity to support industrial growth in northern British Columbia[6]. The project, exempted from standard regulatory delays, is expected to create 9,700 jobs and boost GDP by $10 billion annually once operational[6]. Additionally, revised interconnection rules will allow multiple companies to share costs for grid access, reducing financial barriers for resource sectors[7].

Industry reactions have been mixed. While mining and LNG advocates praise the focus on job-intensive sectors[4], crypto analysts argue the ban overlooks opportunities to integrate energy-efficient mining practices with renewable resources[5]. Meanwhile, AI firms face a more nuanced landscape: though they retain access to power, the competitive allocation process introduces uncertainty. "This framework prioritizes vital growth in sectors like mining and natural gas," Dix emphasized, reflecting the government's stance that clean energy should fuel "responsible industrial expansion"[6].

British Columbia's approach mirrors global debates over balancing innovation with energy sustainability. As AI and crypto industries strain grids from Virginia to Texas[7], the province's model-emphasizing structured allocation and economic criteria-could influence other regions grappling with similar challenges[8].