Virginia to Require Data Centers to Pay for New Transmission Infrastructure
The Virginia State Corporation Commission has ordered data center companies to bear more of the cost for building out the electrical grid infrastructure directly powering their facilities. This ruling aims to shift the financial burden from residents, who would otherwise face higher rates from utilities like Dominion Energy, to the high-demand data center users.
The Virginia State Corporation Commission (SCC) has issued an order requiring data center companies to cover a greater share of the costs associated with building out the electrical transmission infrastructure that directly powers their facilities. This decision aims to prevent general residents from shouldering these costs through higher utility rates.
Dominion Energy had previously sought to raise rates on customers by nearly $3 a month to recover approximately $1.5 billion in costs. However, the SCC's final order implemented a new formula for high-demand users, such as data centers, to ensure they contribute more significantly to the infrastructure required by their operations, thereby reducing the financial impact on residential customers.