Virginia's Energy and Data Center Policy Clash: Implications for State's Future
Virginia is facing a complex intersection of policy decisions regarding energy and data centers. The state is experiencing a surge in energy demand due to its high concentration of data centers, which is further complicated by the Clean Economy Act mandating a transition to a carbon-free electric grid by 2045 for Dominion Energy and by 2050 for Appalachian Power. This has led to increased solar development, but political and local resistance to solar and battery storage projects is growing. Additionally, there are calls for a special legislative session to address issues such as a proposed merger between Dominion Energy and NextEra, and the strain on Virginia's groundwater resources due to data centers. The state is also seeing a rise in manufacturing jobs linked to the data center supply chain, highlighting a shift in the industrial landscape.