Ontario's power grid strains under record data centre demand surge

Ontario is facing a surge in large-scale power connection requests, driven mainly by data centres. Hydro Ottawa reports a record number of projects seeking to join the grid, with demand soaring in recent months. The Independent Electricity System Operator (IESO) oversees the province’s power grid and wholesale market. Data centres are the primary force behind the increase. In Ottawa alone, 34 large projects in Hydro Ottawa’s queue have a combined demand of over 1,000 MW, equal to 86 per cent of the utility’s average load. Across Ontario, data centre requests now total about 6,000 MW, a 70 per cent jump from two months ago.

About 60 per cent of these requests come from data centres, fuelled by the artificial intelligence boom. Public institutions, such as hospitals and government facilities, make up the next largest group at 17 per cent. Most applicants aim to connect within two years, forcing Hydro Ottawa to accelerate its work at an unprecedented scale.

The IESO notes that demand figures can change rapidly as projects are withdrawn, paused, or advanced. By the end of 2026, large-scale connection requests in Ottawa may surpass the average power use of the entire city. The report highlights the growing pressure on Ontario’s power infrastructure. Data centres and public institutions are driving most of the demand. Hydro Ottawa’s CEO, Bryce Conrad, describes the situation as historic for the utility.