Hydro-Québec wants to quintuple its sales to the Google and Amazon data centers of this world, which would have “an economic impact equivalent to aluminum smelters”, according to its chief financial officer.
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The data centers of multinationals like Google, Microsoft or Amazon are not known to create many jobs. However, in its supply plan, Hydro-Québec plans to sell five times more electricity to this type of customer than it does today.
Where does this enthusiasm come from? “We have a KPMG study that tells us that data centers have an economic impact equivalent to aluminum smelters,” said Jean-Hugues Lafleur, executive vice-president and chief financial officer of Hydro-Québec, in response. to a question from the Journal during the presentation of Hydro-Québec’s financial results.
Have to connect them
“Now, do we promote to data centers to tell them ”are you coming to set up in Quebec”? The answer is no. We don’t do that anymore,” he said. Lafleur was referring to a 2017 study by consulting firm KPMG, which estimated the sector could generate up to 14,000 jobs by 2025.
“That said, all data centers that consume more than 50 Mgw, it is the government that will decide whether this center will be supplied or not. If it’s below 50 MGw, we are required by law to connect them, like any other customer,” explains Mr. Lafleur.
Hydro-Québec offers a rate of 5.18 cents per KWh for data centers, the same as granted to aluminum smelters.
” Disagree! »
“With all due respect to Hydro-Québec, I don’t agree,” says Jean Simard, president and CEO of the Aluminum Association of Canada. “Smelters generate far more economic benefits than data centers, and by far,” he says, referring to a study by the Institut du Québec dating from 2022.
“Data centers generate jobs when they are built. But after that, it’s just data. Not many people work there. It’s juice coming in and juice coming out, ”he says. Aluminum smelters, on the contrary, spend 10 million a day, 365 days a year, even in times of pandemic, he says.
“We have 2,500 aluminum suppliers across Quebec. These are the highest salaries in the manufacturing sector in Canada”, he concludes Hydro-Québec should update its data, according to Mr. Simard, who recalls that Hydro-Québec has read the study of the Institut du Québec , and found nothing to complain about.
Record profit for Hydro
- Record profit of $862 million in the 3rd quarter
- Net profit of $3.6 billion for the first 3 quarters of 2022 (That’s more, in 3 months, than all of its profits from last year)
- Soaring energy prices continue to work in favor of Hydro (Hydro sold at 8.2 cents in export markets, compared to 4 cents last year)
- Foreign sales volume amounted to 10.9 TWh, also a record