Virginia energy plan targets rising power demand, affordability and data-center costs
Virginia released its 2026 Energy Plan to address rapidly increasing electricity demand, including demand from data centers, while limiting cost increases for households and small businesses. The plan recommends fairer cost allocation for large data centers and requiring them to reduce or shift electricity use during periods of grid stress.
Virginia’s 2026 Energy Plan projects that data-center demand could account for roughly half of new systemwide power-sector costs under a moderate-growth scenario, totaling about $200 billion. The plan estimates Virginia may need to more than double its generation capacity by 2050 as electricity demand rises and the state pursues clean-energy goals.
Virginia Energy recommends expanding solar power, battery storage, energy efficiency, distributed energy resources and other grid investments. It also proposes requiring large new data centers to demonstrate that they can reduce or shift electricity consumption during periods of high demand, while assigning infrastructure and generation costs more fairly so they are not shifted to residential customers and small businesses. Many recommendations would require action by state agencies, utilities, regulators, local governments or the General Assembly.