The Canadian junior stock is modernizing the power grid, analyst says

Haywood Capital Markets analyst Gianluca Tucci reiterated his “Buy” rating on Tantalus Systems  (Tantalus Systems Stock Quote, Chart, News, Analysts, Financials TSX:GRID) in an Oct. 22  note, saying new British Columbia power restrictions underscore the company’s growing role in North American grid modernization.

“On Monday, the British Columbia energy ministry proposed legislation to cap electricity available to AI data centers and to permanently ban new cryptocurrency mining projects,” Tucci said. “This follows the moratorium first imposed in 2022 and extended in 2024, as the province prioritizes grid connections for sectors such as mining and natural gas that generate greater employment and tax revenue.”

BC Hydro will run a competitive power call in early 2026, allocating 300 MW for AI and 100 MW for other data centers, while industrial demand from mining and oil and gas remains uncapped. Tucci said the changes highlight a global problem: “The grid was not built for the fiery demand from AI and data-center buildouts.”

He noted that U.S. states are taking similar steps, including voluntary demand-response programs in Ohio that allow utilities to manage power use during peak periods remotely. Globally, more than 1,500 data centers have been announced this year, with AI-related facilities representing more than 20% of new electricity demand.

Tucci said these policy shifts reinforce the need for utilities to invest in smarter infrastructure instead of merely adding capacity.

“Jurisdictions that opt out of AI expansion risk losing competitiveness and long-term tax revenue,” he said. “As electrification accelerates, Tantalus’ TRUSense Gateway provides a data-driven bridge for utilities adapting to unpredictable, high-density loads from AI and EV adoption.”

He added that recent deployments, including EPB Chattanooga’s 20,000-unit rollout, validate the product’s scalability and recurring-revenue potential.

“The company is at an inflection point with the commercialization of its TRUSense Gateway,” Tucci said. “It accelerates modernization of the distribution grid and securely integrates behind-the-meter energy resources.”

Tantalus will report Q3 2025 results on Nov. 12, with Haywood expecting $13.3-million in revenue and $0.4-million in Adjusted EBITDA, roughly in line with consensus. Tucci forecasts Adjusted EBITDA of $2.1-million on revenue of $52.8-million in 2025, improving to $3.6-million on $60.7-million in 2026.

“While AI expansion faces new policy friction, it also emphasizes the urgency of grid modernization and the scale of opportunity for Tantalus,” he said.

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