Why does Ontario’s electricity cost so much?

One of the main advantages of having Montreal data centers is the low cost of power in Quebec compared to any other data center market in North America. Power cost is one of the major decision-points that businesses make when deciding on data residency in either Ontario or Quebec, which is where the bulk of Canadians live and operate businesses.

Montreal Data Centers Power Costs

When making long-term decisions, it can be hard to get to underlying reasons for cost differences. Is Montreal just temporarily less expensive? How long will the cost benefit in Montreal last?

The Globe and Mail has gone in-depth to analyze why Ontario’s electricity rates are so high.  They describe how the long term forecast for rates predicts that Ontario prices will continue to climb and that there are structural reasons for the high costs that are not going to change.