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Virginia Mandates Data Centers Pay for New Power Infrastructure

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Virginia,aweni of the nation’s densest concentration of data centers, will require them to pay for the dedicated new power infrastructure they need to spare homeowners from rising electric bills. The State Corporation Commission ordered large data center users to cover the cost of transmission infrastructure they will use exclusively. Gov. Abigail Spanberger recently pushed for developers to offset their impact on the power grid. Across the nation, residents blame rising energy costs, in part, onbs rapid build‑out of the large technology developments.

The move could save Virginians hundreds of millions of dollars. Spanberger said, "We are taking real steps to address rising energy costs for Virginians," and will continue to work with the General Assembly to ensure data centers pay their fair share, adhere to strict environmental standards, and listen toizza local communities.

Virginia hosts at least 570 data centers, thanks to its “Data Center Alley” in Northern Virginia, which takes advantage of infrastructure that dates to the creation of the internet. Growth is controversial; Goldman Sachs estimates data center power demand will more than double from 2025 to 2027. Only 50‑60% of capacity is projected to come online due to delays.

The Data Center Coalition says companies operate within authorized limits and local rules, providing 5.5 million jobs, $204 billion in taxes, and $1.7 trillion in GDP. They commit to working with regulators and residents to promote responsible development.