Andrea Clabough
AI growth, the advent of “hyperscalers”, and plans for new power-hungry data centers dotting the country from coast to coast have overturned previous assumptions of a stable US energy demand growth outlook. One state in particular is at the epicenter of America’s AI revolution: In 2024 alone, Virginia connected fifteen new data centers and anticipates adding another fifteen by the end of 2025. These are not isolated occurrences:
already an established hub for US data centers, a recent WoodMackenzie report showed that Virginia lags only Texas as the top destination for newly announced data centers since January 2023 (boasting over 23,000 MW of capacity in the pipeline). Much of this development has been driven by Northern Virginia’s long-standing “Data Center Alley” concentrated around Washington,
DC. Meanwhile, the state’s primary utility company, Dominion Energy, has suggested that the average Virginia ratepayer could see their power bills increase by 50 percent over the next fifteen years driven largely by power-hungry new data centers coming online.
As the Commonwealth considers the anticipated wave of new centers, its policymakers have an unmissable opportunity to lead the state toward a clear-eyed, viable path forward to reap economic benefits while ensuring both the affordability and sustainability of its energy system. None of these issues will be resolved quickly or easily but should be front and center as Virginia voters decide on their new governor this year and a new legislature.
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