Appalachian Power sees ‘explosive’ growth from data centers, other big customers
Appalachian Power reports "explosive" interest from data centers and other large customers in Virginia, with potential power demand more than triple its current peak. The utility is in talks with dozens of potential customers, primarily data centers, prompting regulatory discussions on rate increases and infrastructure cost sharing. The State Corporation Commission has approved new requirements for large-load customers in Appalachian Power's service territory.
Appalachian Power, an electric utility serving parts of Virginia, West Virginia, and Tennessee, has informed state regulators of "explosive and unprecedented" interest from data centers and other large customers in Virginia. Brian Abraham, president and chief operating officer, stated that the company is in talks with 36 potential large-load customers whose combined power demand could reach 25,000 megawatts, significantly exceeding the utility's recent peak demand of 7,200 megawatts.
While details on these prospective customers are confidential, Appalachian Power spokesperson George Porter noted that not all projects proceed to fruition. However, existing data center projects in Botetourt, Pittsylvania, and Wythe counties are known to be working with Appalachian Power. Separately, Dominion Energy, serving Northern Virginia, faces even greater demand, with a queue of large customers requesting 70,000 megawatts of capacity.
The surge in demand has led to discussions on how to manage infrastructure costs and potential impacts on average ratepayers. Appalachian Power has filed an application with the Virginia State Corporation Commission (SCC) to raise its rates, with a decision due by January 15. The Virginia Poverty Law Center, represented by Dana Wiggins, advocates for large customers to bear the cost of any new infrastructure they require to prevent residential customers from paying more.
In a related development, the SCC approved new requirements in June for large-load customers in Appalachian Power's territory, including 14-year contracts and minimum charges. Additionally, the Trump administration's "Ratepayer Protection Pledge" advocates for tech companies to cover infrastructure upgrade costs. Google, for instance, has stated it will pay for the infrastructure needed for its Botetourt County data center project, a sentiment echoed by Botetourt County's government.