AI Boom Drives Fight Over Electric Bills as D.C., Virginia and Maryland Clash Over Data Centers
The AI boom is driving significant electricity demand and infrastructure costs across the Washington region, leading to debates among officials in D.C., Virginia, and Maryland about who should bear these costs. Prince George's County has approved a two-year moratorium on new hyperscale data centers, while Virginia's administration is pushing for data center companies to pay more for necessary transmission projects. Public opposition to data centers, citing concerns over energy and water use, is also growing.
The rapid expansion of artificial intelligence is causing a surge in electricity demand across the Washington region, projected to add $6.3 billion in future power costs. This has sparked a debate among officials in the District of Columbia, Northern Virginia, and Maryland over where to build new data centers and who should fund the necessary power infrastructure.
PJM Interconnection, the operator of a grid serving 13 states and D.C., has identified data centers as the primary driver of this imbalance, stating that demand is growing faster than new generation capacity can be added. Public opposition is also significant, with a recent Gallup survey indicating that 71% of Americans oppose data center construction in their communities, largely due to concerns about electricity consumption, water use, environmental impact, and higher utility bills.
In Virginia, Governor Abigail Spanberger's administration is advocating for large-load customers, including data centers, to bear more of the cost for transmission projects built to serve them, rather than shifting expenses to households and small businesses. Chief Energy Officer Josephus Allmond filed comments with the State Corporation Commission, emphasizing the need for safeguards to prevent residential customers from subsidizing commercial infrastructure. In Loudoun County, already a global data center hub, hundreds of residents are actively opposing new high-voltage transmission lines proposed by Dominion Energy.
Meanwhile, Prince George’s County in Maryland recently enacted a two-year moratorium on new hyperscale data center development. This pause allows lawmakers to establish appropriate locations and regulations for future facilities. Council Chair Krystal Oriadha expressed a preference for a permanent ban, and Councilmember Wala Blegay highlighted concerns about the impact on water resources, the energy grid, and the quality of life in surrounding neighborhoods.