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Advisors warn data centers can drive major transmission upgrades, potentially shifting costs

Grayson County Board of Supervisors / Planning Commission (joint meeting) · August 18, 2026

Summary

Consultant told the board Virginia faces a backlog of large-load demand tied to AI and data centers and that state regulators have begun assigning more transmission upgrade costs to large new loads; county members were urged to consider how cost allocation decisions could affect local electric rates.

County consultants told supervisors that modern data centers are changing the statewide electricity landscape and can require large transmission and generation investments.

Michael said recent growth—largely driven by AI workloads—has created enormous demand for new capacity; he cited a backlog figure for Virginia's needs and said regulators are evaluating cost-allocation changes so new large-load customers may bear more of the transmission upgrades. He told the meeting that utilities and regulators are already considering assigning the cost of certain new transmission infrastructure directly to large facilities that necessitate it, and he warned board members that, even if Grayson County chooses not to host large facilities, rate impacts can cascade across a utility territory.

Supervisors asked for context about state-level actions; the consultant referenced a State Corporation Commission filing (order dated July 31) that is reviewing transmission cost allocation. The board did not adopt any specific energy-related concessions or requirements but identified grid impacts as a central factor in drafting any future local permitting rules.

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