Spanberger: Data centers should pay for major electrical infrastructure like Valley Link
Data centers in Virginia are driving the need for new high-voltage transmission lines proposed by Valley Link, a company established by Dominion Energy. A debate is ongoing regarding whether data centers or general ratepayers should cover the significant costs of this electrical infrastructure. Governor Abigail Spanberger advocates for data centers to pay for the transmission infrastructure they require, but the State Corporation Commission's ruling on cost allocation only applies to direct connect facilities, not bulk transmission lines.
Data centers in Virginia are fueling a substantial increase in electricity demand, prompting Dominion Energy to propose two major 765 kV transmission lines spanning nearly 400 miles through a subsidiary called Valley Link. These high-voltage lines, Valley North and Joshua Falls to Yeat, are slated to traverse multiple Virginia counties including Clarke, Frederick, Loudoun, Culpeper, Orange, and Spotsylvania, as well as parts of West Virginia and Maryland.
The project faces opposition from residents in affected areas, concerned about the lines crossing farmland and private property. The core controversy revolves around who should bear the construction costs for this massive infrastructure. While Dominion Energy cites a doubling of power demand over the next decade, energy experts like Savannah Wilson of Clean Virginia warn that all ratepayers will be responsible for the costs, as the State Corporation Commission (SCC) ruling on cost allocation currently applies only to "direct connect" transmission infrastructure that links individual data centers to the grid, not to larger, regional backbone systems like Valley Link.
Governor Abigail Spanberger explicitly stated her belief that data centers should pay for the backbone infrastructure they require. However, when asked about intervening in the Valley Link project or issuing a statewide moratorium on data center growth, she declined, deferring approvals to local governments. Dominion Energy maintains that the Valley Link projects are part of the bulk transmission system, providing regional reliability benefits, and are not solely for individual data centers, despite data centers being a major driver of the demand.