“Developers inundate residents and lawmakers with short‑term benefits while omitting long‑term costs—especially rising electric bills,” said Chris Miller, PEC president. “This should be a kitchen table issue for every Virginian.”
Northern Virginia—especially Loudoun County’s “Data Center Alley”—holds the highest concentration of data centers in the world. As of mid‑2024, there were approximately 200 operational data centers in Loudoun, with 117 more in the pipeline. Since 2018, permitted data center space leaped from ~13 million square feet to ~43 million by 2024—a 231% increase. Statewide, Northern Virginia data centers, including Ashburn and Loudoun, handle an estimated 70% of global internet traffic.
The surge in electricity demand triggered by data centers is overwhelming Virginia’s energy infrastructure. Dominion Energy forecasts peak demand rising from 17,353 MW in 2024 to 26,623 MW by 2039, with the majority of that jump driven by data center load. The state-run JLARC commission projects that, if demand remains unchecked, Virginia’s energy requirements could double over the next decade, overwhelmingly due to data centers. Virginia will need extensive new generation and transmission infrastructure—like wind farms, gas plants, and regional lines—to meet this demand.
Further context from Reuters indicates that the U.S. Department of Energy anticipates an additional 20 GW of data center load by 2030, and predicts data centers could consume 6.7%–12% of total U.S. power production by 2028. Virginia is among the regions most heavily impacted.
Dominion Energy has responded by proposing new electricity rate structures. In April 2025, the company requested base rate increases of $8.51/month (2026) and $2.00/month (2027) for residential customers—its first base rate hike since 1992. Additional reporting suggests a separate 15% rate increase could cost households up to $257/year by 2027 if approved by the State Corporation Commission (SCC).
To shield residential customers, Dominion and other utilities have proposed a large-load rate class—targeted at data centers consuming 25 MW or more—to ensure they bear the true cost of the infrastructure they drive. JLARC warns that without such reforms, ordinary ratepayers may unknowingly foot the bill for data center infrastructure, including stranded costs.
The rapid expansion of data centers has provoked a growing backlash. In Northern Virginia, noise, diesel generator fumes, pollution, and encroachment onto historic and natural lands (like Manassas Battlefield Park) have triggered concern and resistance from residents. Data centers have disrupted local communities’ quality of life, environmental integrity, and public health.
An academic study spotlighting “Data Center Valley” in Northern Virginia identifies local-level consequences—water usage, noise pollution, infrastructure strain, and inequitable burdens—as often overlooked in national data center debates.
PEC’s campaign advocates for a smarter approach through:
“The steep increase in power consumption—projected at 5.5% annual growth—comes almost entirely from data centers,” warned Miller, calling it a “crisis by contract.”
As Richmond, Fredericksburg, and other secondary markets emerge—consuming hundreds of megawatts in new data center development—the impact is becoming statewide. In 2025 alone, Richmond area development consumed 720 MW and is starting to face similar constraints and community pushback.
Virginia has the opportunity—and responsibility—to be a global leader in responsibly scaling digital infrastructure. With thoughtful regulation anchored in transparency and fairness, the state can unlock the economic benefits of AI and cloud investment while protecting its residents.
