As electricity use soars across state, Henrico manager asks employees to cut back
Henrico County is urging its employees to conserve electricity as the county's utility bill is set to rise by 25%, a cost surge partly attributed to the proliferation of data centers across Virginia. Residents are criticizing local governments for permitting data center development, pointing to increased costs and new water conservation requests as consequences. In response, state lawmakers have agreed to increase an electricity consumption tax aimed at data centers, and local officials are asking residents to limit water usage.
Henrico County, Virginia, faces a projected 25% increase in its electricity bill for government and school buildings this fiscal year, prompting County Manager John Vithoulkas to ask employees to implement conservation measures such as turning off lights and unplugging appliances. This directive comes as electricity usage and costs are soaring statewide, with data centers identified as major consumers. The county expects an additional $5 million in electricity costs this year, with further increases anticipated.
Residents are voicing concerns, with some critics, like Gray Montrose, arguing that Henrico County and its taxpayers are now "paying the price" for the locality's past embrace of data center development. Despite rising costs and public pushback, data center companies continue to expand; QTS, for example, plans to nearly double its footprint in eastern Henrico with an additional 6 million square feet, an expansion that has already received county approval. Separately, opponents of a proposed Google data center campus in Botetourt County have held public demonstrations.
In a move to address the statewide energy strain, Virginia state lawmakers and Governor Abigail Spanberger have reportedly agreed to raise the electricity consumption tax, specifically designed to ensure data centers contribute a fairer share. The issue extends to water resources as well, with leaders in Henrico and the City of Richmond asking residents to limit water usage. While the Richmond Department of Public Utilities stated "no entity is exempt" from its request, Henrico's public utilities director, Bentley Chan, noted that the county's data centers consume less water than other industrial facilities like food producers or hospitals.