
by James A. Bacon
Electricity demand from data centers in Virginia potentially could double over the next 10 years if unconstrained by infrastructure limitations, according to an independent forecast produced for the Joint Legislative Audit and Review Commission (JLARC). Billions of dollars of new solar farms, wind farms, gas-fired generators, battery storage facilities, and electric transmission lines would have to be built to meet the demand. Meeting even half the demand, says the JLARC report, would be “difficult to achieve.”
“The biggest challenge would be building new natural gas plants. New gas would need to be added at the rate of about one large, 1,500 MW plant every two years for 15 consecutive years,” the report concludes.
Building out the infrastructure would be expensive, and electricity rates would rise. A typical residential customer of Dominion Energy could see inflation-adjusted costs rise by $14 to $37 monthly, the report says.
The study, “Data Centers in Virginia,” lays out the trade-offs facing Virginia, which has the largest concentration of data centers in the world, as Artificial Intelligence (AI) drives demand for energy-intensive processing power to heights unimagined only a few years ago. Chasing the economic opportunity would dash green dreams of a carbon-free electric grid.
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