Hydro Ottawa is currently experiencing a significant increase in power demand from major customers, particularly data centers, creating what CEO Bryce Conrad describes as “extraordinary pressure” that is anticipated to continue growing. The company is now fielding requests for connections to 34 large-load projects, collectively requiring 1,075 megawatts of power, representing 86% of Hydro Ottawa’s average system load in the previous year.
Conrad highlighted that this demand level is the highest in the company’s history, with most projects aiming to come online within the next two years, signaling just the beginning of this trend. He projected that by the end of the year, connection requests could surpass the total power consumption of both residents and businesses in Ottawa.
The surge in demand is largely driven by data centers, accounting for about 60% of the 1,075 megawatts required. These data centers are not the major industry players like Amazon, Microsoft, or Meta but smaller firms, some specializing in generative AI technology. Additionally, government entities, including those involved in national defense, are also seeking substantial power connections.
However, Hydro Ottawa is encountering delays in fulfilling these requests due to disruptions in the supply chain. Equipment procurement, such as transformers that previously took six to nine months, now extends to two years or even up to four years in some instances. The competition for essential equipment with larger U.S. entities is intensifying the challenges for Hydro Ottawa.
Despite the obstacles, Conrad views the heightened demand as a positive indication of Ottawa’s growth and economic activity, emphasizing the need to support this expansion effectively.
In response to the escalating demands and the necessity to upgrade infrastructure, enhance cybersecurity, and accommodate population growth, Hydro Ottawa plans to double its capital investments over the next five years. This commitment to modernize the grid and bolster critical electricity infrastructure is deemed crucial for sustaining the city’s development.
Conrad defended the utility’s recent rate increase, stressing the need for adequate investment amid surging demand. Despite facing hurdles in the rate application process, he emphasized Hydro Ottawa’s financial performance, which includes a $22-million dividend to the city this year. While acknowledging concerns about service reliability, Conrad assured that the company aims to swiftly restore power during outages, with a current service reliability rate of 99.97%.
Overall, city councillors commended Hydro Ottawa’s efforts, recognizing the challenges posed by the evolving energy landscape and the utility’s ongoing commitment to serving the community effectively.