As businesses continue to seek out locations with access to high-quality data centers, the state of Virginia is becoming an increasingly popular destination. With data centers expected to increase by 50% in the next five years, according to a report from the Joint Legislative Audit and Review Committee (JLARC), this growth poses significant challenges for the state’s energy infrastructure.
One major concern is the increased energy consumption associated with data centers. These facilities require a lot of power to run their servers and equipment, which can strain the grid during peak periods. This can lead to brownouts or blackouts in some areas, as well as put pressure on transmission lines.
In addition to these concerns, the growth of data centers is also contributing to generation and transmission costs for electric utilities. As data centers become more prevalent, they are taking up a larger share of the state’s energy market, driving up costs for consumers.
To address these challenges, the state legislature has introduced several bills aimed at mitigating the impact of data centers on the energy infrastructure. For example, HB 2084 would direct Dominion Energy to develop a plan for addressing the risk of stranded generation and transmission costs. Another bill, HB 2644 and SB 1197, would allow electric cooperatives to create for-profit subsidiary companies that could fulfill their legal obligation to provide energy services to customers with load capacity of over 90 megawatts.
However, some experts argue that these bills do not go far enough in addressing the issue. Del. David Reid (D-Loudoun County) has introduced a new bill, HB 1822, which would require the State Corporation Commission to consider using advanced conductors to replace old power lines and in new construction.
Others, such as Rep. Irene Shin (F-Fairfax County), who sponsored HB 2084, hope to see the state move towards a more decentralized energy system, where data centers are incentivized to build their own generation capacity. This could potentially reduce the strain on the grid and mitigate some of the negative impacts associated with data center growth.
As the debate over data centers in Virginia continues, it is clear that there is no easy solution. While these facilities bring many economic benefits, they also pose significant challenges for the state’s energy infrastructure. Whether the legislature can find a balance between competing interests remains to be seen.
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