Virginia Regulators Order Data Centers to Fund Grid Upgrades, Texas Freezes Approvals
The Virginia DEQ issued a report on eastern aquifer strain, while state regulators ordered data centers to cover power grid upgrade costs. Separately, Texas Gov. Greg Abbott has frozen data center approvals pending a grid audit. Amazon is also developing large data centers in North Carolina and Texas, raising environmental and community concerns.
The Virginia Department of Environmental Quality released a report detailing significant strain on eastern aquifers, posing a risk to clean drinking water and prompting state senators to call for a special legislative session. Concurrently, Virginia state regulators have mandated that data centers bear the costs for power grid upgrades, a decision in which Governor Spanberger's administration played a role. Separately, Governor Spanberger has also formally requested to be a party to the proposed merger between Dominion Energy and NextEra Energy, emphasizing the high stakes for Virginia and its ratepayers.
In Texas, Governor Greg Abbott has enacted a freeze on all data center approvals, pending a comprehensive audit of facilities seeking connection to the state's power grid. This regulatory pause highlights growing concerns about the industry's impact on energy infrastructure. PJM Interconnection, serving a vast region from Virginia to Illinois, has urged states and utilities to hold data centers accountable for their escalating power demands to prevent service cutoffs.
Further, Amazon is developing a $10 billion data center in North Carolina, a project where residents report being excluded from the decision-making process, raising opposition concerns. Amazon is also investing in a large data center in Texas, which utilizes a natural-gas power plant and could become the largest single source of climate pollution in the United States, despite the company's climate commitments.