Virginia is home to over 470 data centers, with 150 of them concentrated in Loudoun County alone. These facilities consume as much electricity as small cities, leading to a skyrocketing demand for energy. By 2040, it’s estimated that the state will need 45 gigawatts of electricity—more than double the current system’s capacity. This growth will require expensive new power generation and transmission infrastructure, costs that will mostly fall on Virginia’s residents.
While being the global leader in data centers may sound prestigious, the rapid expansion of this industry has created significant problems for Virginia. The energy and water demands of data centers make it harder for the state to transition to clean energy. Yet, there’s been little oversight or accountability in planning for this growth, leaving local communities to bear the consequences of large power lines and substations disrupting their quality of life.
How Did This Happen?
The issue stems from contracts between Dominion Energy and major tech companies like Amazon, Google, and Microsoft. Dominion has promised to supply power to these companies without having the infrastructure in place to meet demand. Local governments approved data center projects without considering the statewide impact on electricity. Dominion’s contracts also lack public transparency, further compounding the problem.
Currently, Dominion’s energy plan includes commitments for an additional 21 gigawatts of electricity in the next decade—almost as much as the state’s entire current peak load. This growth will require over $100 billion in investments, but Dominion hasn’t assessed the long-term impacts on communities or natural resources.
The “Obligation to Serve” Problem
By law, Dominion must provide electricity to anyone in its service area who requests it. However, this doesn’t mean it should enter into unsustainable contracts. Dominion has the authority to pause new agreements if resources are insufficient, but it has continued signing deals without proper evaluation or oversight.
The Cost to Virginians
These unchecked contracts are leading to higher costs for residents and businesses. Dominion projects that energy rates could double or triple in the next 15 years. Meanwhile, large tech companies currently pay much lower rates than residential consumers, meaning families, schools, and small businesses are subsidizing some of the world’s wealthiest corporations.
What Needs to Change?
Virginia urgently needs stronger state-level oversight. Agencies like the General Assembly, State Corporation Commission (SCC), and the Commission on Electric Utility Regulation must ensure data center projects are evaluated for their long-term impacts on energy, water resources, the environment, and local communities. Transparency in contracts and a fairer rate structure for large tech companies are essential to prevent Virginia families from bearing the financial burden.
It’s time for regulators and lawmakers to act responsibly to balance the state’s economic growth with the well-being of its residents and resources.