Appalachia Faces Rising Electricity Demand, Data Centers Impact Energy Transition and Communities

Electricity demand in the U.S. has been steadily increasing since 2022, following 15 years of stability, a trend expected to continue with data centers identified as a significant driver. This surge is causing concern across Appalachia and the Southeast regarding rising electricity bills, reliance on fossil fuels, and environmental impacts on air and water. Communities are actively pushing back against proposed energy projects. For instance, in Tucker County, West Virginia, a group called Tucker United is opposing a massive data center complex and accompanying methane gas plant proposed by Fundamental Data. This group has appealed the West Virginia Department of Environmental Protection’s approval of the project’s air pollution permits, with the case currently ongoing. Similarly, residents in Fluvanna County, Virginia, opposed Tenaska’s plans for a second methane gas power plant due to health risks from air pollution and concerns about water usage from the James River; despite community opposition, the county board of supervisors approved the plant. Government bodies and utilities are navigating these challenges. Virginia passed a law in 2026 requiring utilities to implement demand flexibility programs for high-load customers like data centers to manage peak demand. In contrast, the West Virginia House of Delegates passed a bill in 2025 aimed at limiting public input on data center developments. Utilities like Duke Energy are also seeking approval for new gas-fired power generation, linking a substantial portion of the forecasted demand to data centers, while also proposing residential rate increases.