By Hugo Lafontaine, Vice President, Industrial Automation, and Bershu Nkwawir, Director of Digital Transformation, at Schneider Electric
Canada’s electricity system is being reshaped faster than most industrial leaders expected. The surge in AI workloads, the rush to build hyperscale data centres, and the acceleration of electrification are all converging at once. For manufacturers, the result is a tightening grid that is beginning to dictate which projects move forward and which don’t.
Regulators are currently reviewing 15 gigawatts of new datacentre applications. That is roughly the equivalent of powering 70% of Canadian homes, according to RBC’s Climate Action Institute. If these proposals materialize, data centres could represent 14% of national electricity demand by the end of the decade. Several provinces are already having to modernize their longstanding gridconnection policies to manage the volume and scale of these requests.
Bershu Nkwawir
Researchers warn that Canada could experience capacity shortfalls as early as 2028, as AI, industrial loads, and electrification begin to outpace available supply. Some governments are now openly encouraging large power users to consider onsite generation, a trend that has become clear in Alberta’s evolving approach to hyperscale development.
Manufacturers are already feeling the effects. Grid congestion is raising peak demand charges. Connection wait times are delaying expansions. Curtailment risk is entering operational planning. And the scale of AI’s energy use is adding even more pressure. A single AI query uses about ten times the electricity required for a basic web search, according to RBC’s reporting.
Energy access is no longer something companies can take for granted. It has become a strategic imperative that influences competitiveness, timelines, and longterm planning.
Many industrial operators are now turning to digital tools to navigate this new reality. Realtime insight into how energy is consumed, the ability to predict future loads, and the option to automatically respond to changing grid conditions are becoming essential. Facilities that can shift or orchestrate their energy demand will be better positioned when utilities prioritize flexible loads during periods of limited capacity.
Hugo Lafontaine
Some manufacturers are exploring onsite alternatives as well. Microgrids, distributed energy resources, and hybrid systems are drawing interest from companies seeking more control over their growth plans. With the right digital infrastructure, these systems can help stabilize operations when the grid becomes uncertain.
This shift is also reflected in the growing interest in technologies designed for real‑time energy visibility and intelligent optimization. Schneider Electric’s EcoStruxure platform is one example of the type of digital infrastructure manufacturers are adopting to better manage consumption, coordinate onsite resources, and maintain stable operations as grid conditions tighten. As an energy technology partner, Schneider Electric is helping industrial organizations modernize their operations so they can grow even as electricity becomes a constraint.
Canada’s industrial landscape is changing quickly. Electricity, once assumed to be reliably available, is becoming a constraint that can shape entire business strategies. The organizations that prepare for this shift now, will be the ones able to continue growing despite rising demand and limited capacity. The ones that wait may find themselves competing directly with data centres for the power they need to operate.
Now is the time for manufacturers to evaluate their energy strategies, strengthen their digital foundations, and partner with energy technology leaders who can help them build resilience before constraints intensify and derail their otherwise carefullylaid out plans.
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