(Source: Data Center Builders)
Calgary, AB July 3, 2018— Data Center Builders, a consultancy company working with cryptocurrency miners relocating to Alberta have seen a surge of interest and deals from blockchain companies located in Quebec and Asia after Hydro-Quebec triples the electricity price for cryptocurrency miners.
Hydro-Quebec, after initially courting blockchain companies to setup in the province with attractive low power rates and surplus capacity from hydro dams is now tripling the electricity price to 15 cents per kilowatt hours. The price increase is making it cost prohibitive for new cryptocurrency miners to do business in Quebec. Facing increasing cost and regulatory uncertainty miners are turning west to Alberta and Saskatchewan for energy.
Alberta is well positioned as an attractive location for cryptocurrency miners due to low electricity prices, surplus electricity capacity, an abundance of low-cost natural gas, a stable and transparent de-regulated electricity market, low humidity and low average annual temperatures.
The average wholesale electricity price in Alberta was 1.6 cents USD per kilowatt hours in 2017 and 3.5 cents USD per kilowatt hour in the first half of 2018. Alberta forecasts surplus capacity between 2000-4500 megawatts in the next 24 months. Alberta’s Renewable Electricity Program (REP) which encourages the development of large scale renewable energy generation will add an additional 300 megawatts in Round 2 and 400 megawatts in Round 3. Additionally, United Conservative Party is calling for the repeal of the provincial carbon tax and vigorously opposing the imposition of any federal carbon tax, which would reduce the cost of electricity generation.
With favourable conditions in Alberta, a client of Data Center Builders has committed to its first major project in southern Alberta with construction starting in the first quarter of 2019.
“Our investor clients are currently looking at Alberta as an ideal location both economically and regulatory wise for their data facilities. Alberta is poised to be the next data valley for blockchain technology by welcoming investments from cryptocurrency mining groups” – Allan Ng, CEO, Data Center Builders
Alberta is poised to be the next “data valley” for blockchain technology by welcoming investment from cryptocurrency mining groups moving from Quebec and Asia.