Virginia county urges power saving measures amid 25% electricity rate hike, data center growth
Henrico County, Virginia, is implementing energy austerity measures, asking employees to reduce power usage due to a projected $5 million spike in utility costs. This comes as electricity rates across Virginia are set to increase by 25%, a trend linked to the state's significant data center growth and its impact on energy demand.
Henrico County, Virginia, is urging its employees to conserve electricity following a 25% increase in utility rates, which is expected to add $5 million to the county's costs in the next fiscal year. County Manager John Vithoulkas issued an email outlining steps employees should take, such as turning off lights and computers, citing a dramatic rise in electricity prices set to begin July 1st. He also noted that further rate increases are anticipated in the coming years.
While Vithoulkas did not directly attribute the rate hike to data center expansion, the article highlights that Virginia is the leading state for data centers in the U.S. The Virginia's Joint Legislative and Audit Review Commission (JLARC) concluded in a 2023 assessment that the data center industry boom has "substantially driven up energy demand in the state," which is likely to increase system costs for all customers, including non-data center users.
Henrico County is a member of the Virginia Energy Purchasing Governmental Association (VEPGA), and the 25% price increase applies to most Virginia municipalities north of Richmond that are also VEPGA members. With Northern Virginia's data center capacity nearing its limit, central Virginia areas like Richmond are increasingly becoming hubs for new data center developments.