For Immediate Release
Media Contact:
Mike Doble, Doble Consulting
[email protected]; 703-579-7963
WARRENTON, Va. (Oct. 17, 2024) – The Integrated Resource Plan (IRP) filed by Dominion Energy with the Virginia State Corporation Commission (“SCC”) this week projects a more than 100 percent increase in electricity usage in the next 15 years, primarily driven by the explosive and uncontrolled growth of data centers. On the current track, Virginians could see their electricity bills double over the period laid out in Dominion’s plan. The SCC will begin consideration of the Dominion plan over the coming months, but has already directed Dominion to supplement its filing with additional information on the impact of data center demand .
“Virginia faces an energy crisis caused by a collision of state government failing to oversee the influx of data centers that are consuming unprecedented amounts of electricity – and the unrelenting stream of approvals being authorized at the local level. Dominion argues it is obligated to contract with data centers to meet projected demand. The energy demand forecast in the plan is more than 100 percent of what Dominion currently generates and will require the equivalent of 10 new nuclear plants to meet projected needs,” said Chris Miller, president of The Piedmont Environmental Council.
“Dominion is creating a ‘crisis by contract.’ For reference, a doubling of the current energy demand would be as if Virginia added more than 3.6 million new households as ratepayers. Except, we’re not adding 3.6 million new ratepayers; population growth in Virginia is low, at an annual rate of less than 0.5 percent. The steep increase in power consumption, projected by Dominion at 5.5% annualized growth, comes almost entirely from data centers,” Miller said.
As written, the IRP projects a cost of more than one hundred billion dollars to build out the generation, transmission and storage needed to match the unchecked growth of data centers in Virginia.
Who pays for this? Under current rate structures, all Virginia ratepayers, including families, schools, health care systems, and small businesses, will foot a large share of the bill.
“The General Assembly has given generous tax breaks and subsidies to the world’s largest and wealthiest tech companies to build in Virginia. Approvals of huge complexes with multiple data centers drawing as much power as is generated by Dominion’s largest nuclear power plants were left to towns and counties that made deals with the huge companies flocking to the state. Local governments made decisions that impact the future of the entire mid-Atlantic region with no consideration of the short- and long-term resource impacts,” said Miller.
The tech companies creating this demand should have to pay for the expanded capacity. Other Virginia businesses and citizens should not shoulder that burden. The Virginia State Corporation Commission (SCC) recognizes this challenge and is requiring Dominion to supplement its IRP to include a least-cost alternative plan that does not include data center load growth. Dominion must also prepare a Virginia Clean Economy Act (VCEA)-compliant plan that does not include data center load growth, which will isolate how much of the IRP buildout is needed to serve data centers.
The Piedmont Environmental Council and the Virginia Data Center Reform Coalition are advocating for a smart development approach, including state oversight with clear and consistent processes, transparency at all steps in the process and a deep understanding of the long term impacts of both the siting and operation of data centers.
To learn more, visit PEC’s webpage about data centers and energy demand at pecva.org/datacenters. For more information, contact PEC President Chris Miller or PEC Land Use Director Julie Bolthouse.
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The Piedmont Environmental Council (PEC) works to protect and restore the lands and waters of the Virginia Piedmont, while building stronger, more sustainable communities. Founded in 1972, PEC is a locally based, community-supported 501(c)3 nonprofit and accredited land trust. At the core of PEC’s approach is a focus on educating, engaging and empowering people to effect positive change in their communities.