Virginia faces energy crisis as data center demand doubles electricity load by 2029

The Rappahannock County Planning Commission meeting on January 15, 2025, focused on the significant impact of data centers on local energy infrastructure and the challenges posed by increasing electricity demand.

During the meeting, officials discussed the rapid growth of data centers in the region, attributed to the availability of low-cost electricity and existing electrical infrastructure. This trend has led to a dramatic rise in energy load, with projections indicating that Virginia's peak electricity demand could double in a short period. Such growth raises concerns about the capacity of current transmission lines and the need for substantial new infrastructure.

A recent legislative study highlighted the urgency of the situation, suggesting that a new natural gas plant will need to be constructed every 18 months over the next decade to meet the escalating demand. Additionally, the existing transmission lines are nearing capacity, necessitating the construction of new lines to transport the increased power supply.

The implications for local ratepayers are significant, as the costs associated with building new power plants and transmission lines will be distributed among all electricity consumers, regardless of whether the new infrastructure is primarily driven by the data center industry. This could lead to higher energy costs for residents.

Specific concerns were raised about the potential for voltage collapse in certain transmission lines by 2029, particularly those crossing through Rappahannock and Culpeper counties. The commission noted that Dominion Energy is exploring various options to address these challenges, including potential connections to other energy sources.

Overall, the meeting underscored the pressing need for strategic planning and investment in energy infrastructure to accommodate the growing demands of data centers while ensuring reliable service for local residents. The commission plans to continue monitoring developments and engage with Dominion Energy on these critical issues.