Virginia orders data centers to pay for new transmission infrastructure
Virginia's State Corporation Commission has ordered data centers and other large-load customers to pay for transmission infrastructure built exclusively to serve their facilities. This decision, supported by Governor Abigail Spanberger's administration and state lawmakers, aims to prevent utility ratepayers from covering these costs. The measure is projected to save Virginians hundreds of millions of dollars.
Virginia's State Corporation Commission (SCC) has issued a significant new order mandating that data centers and other substantial electricity consumers directly cover the costs of transmission infrastructure constructed solely to serve their operations. This ruling represents a shift from previous practices where such expenses could be distributed among a broader base of utility customers, including residential households and small businesses.
The decision was strongly advocated by Governor Abigail Spanberger's administration, with Chief Energy Officer Josephus Allmond submitting comments to the SCC urging regulators to prevent ratepayers from subsidizing infrastructure costs generated by data center development. Governor Spanberger highlighted that this order is projected to save Virginians hundreds of millions of dollars by ensuring that data centers bear the full financial responsibility for their required transmission infrastructure. The administration's position received support from state lawmakers, including Senator Schuyler VanValkenburg and 19 other members of the Virginia General Assembly.
In addition to this SCC order, the Governor's office noted that Spanberger has signed separate legislation addressing data center energy consumption, environmental requirements for backup generators, and expanding the authority of local governments in evaluating proposed projects. However, the specific bill numbers or detailed implementation timelines for these additional legislative measures were not provided in the announcement.