The issue they are looking to address is that most, if not all,...

The issue they are looking to address is that most, if not all, data centres are planning to come onstream before the matching power supply is there given the timing differences in building a power plant versus a data centres.

The co-location is a different, but related, issue. Having power supplied virtually, ie from another part of the province, can cause issues if the data centre location has a shortfall of power supply, could cause local brownouts or even blackouts. Best option is to have the two co-located to prevent supply/demand shortages in the areas at or in between the facilities.