Data center demand surges; what will Dominion do if those projects fall through?
Dominion Energy’s long-term energy plan calls for more than 39 gigawatts of new generation and storage as Virginia’s electricity demand, including data center demand, continues to grow. The company says new data centers will be responsible for infrastructure costs if projects fail to materialize, while residential customers could see electric bills rise by more than $100 over 20 years.
Dominion Energy’s latest Integrated Resource Plan projects substantial expansion of Virginia’s power system to meet rising demand driven partly by data centers. The preferred plan includes more than 39 gigawatts of new generation and storage, much of it from solar, offshore wind, energy storage and advanced nuclear technology, at a modeled portfolio cost exceeding $183 billion.
The utility said about 12,000 megawatts of data center capacity is already under contract in its service territory, while prospective large-load requests total roughly 25,000 megawatts through 2031. Dominion said data centers will sign 14-year contracts covering minimum demand charges and provide collateral to protect residential customers from costs associated with infrastructure that becomes stranded if planned projects do not proceed.