September 27, 2025

Impact of Data Centers on Electricity Demand in Virginia, North Carolina, and Ohio

News Summary

The rapid growth of data centers in Virginia, North Carolina, and Ohio is significantly increasing electricity demand, leading to rising utility costs and concerns among local residents and businesses. Virginia’s Dominion Energy and North Carolina’s Duke Energy forecast substantial increases in power demand while attempting to meet clean energy goals. Ohio is addressing these challenges through modified tariff structures for data centers. The situation raises pressing questions about sustainable energy solutions amid economic growth and environmental responsibility.

Virginia, North Carolina, and Ohio

The rapid expansion of data centers is significantly impacting electricity demand across Virginia, North Carolina, and Ohio, leading to rising utility costs and concerns among residents and businesses. Utilities are grappling with the challenge of accommodating this surge in power needs while meeting clean energy goals.

Electricity Demand Projections

Virginia’s Dominion Energy anticipates a 5% annual increase in peak power demand over the next 15 years, attributing much of this growth to the expansion of data centers. This projection raises alarms as it conflicts with the Virginia Clean Economy Act (VCEA), which mandates that the state transitions to carbon-free energy by 2045. In response to the increasing energy requirements, Dominion Energy has proposed the construction of a 944 megawatt (MW) natural gas “peaker” plant. However, this move faces resistance from clean energy advocates who argue for alternative, environmentally friendly solutions.

Regional Impact and Concerns

In neighboring North Carolina, Duke Energy forecasts that the rising demand for electricity, mostly driven by data centers, will require an additional 6 gigawatts (GW) of capacity. Stakeholders in North Carolina are currently engaged in debates over how best to meet the demands while still adhering to clean energy initiatives.

Keen awareness is also growing in Ohio, where the Public Utilities Commission has modified tariff structures for large data centers. The new pricing model requires data center operators to pay a fixed amount equivalent to 85% of their projected usage, aiming to prevent the passing of infrastructure upgrade costs onto residential customers.

Financial Implications

The boom in data center operations has already affected utility bills. The PJM Interconnection has reported that this sector’s growth contributed to a 22% increase in wholesale electricity prices projected for 2025. This situation has raised alarms for consumers and advocates who assert that these rising costs effectively transfer economic burdens from corporations to everyday residential customers.

Future Outlook

Looking ahead, economic forecasts predict a 2.5% annual growth in overall electricity demand in the United States through 2035, primarily driven by data center operations. Companies like Amazon and Microsoft are either in the planning or construction stages of new data centers, emphasizing regional reliance on electricity amid growing energy demands.

Potential Solutions

In light of these challenges, microgrid technology has emerged as a potential remedy for mitigating pressure on the larger electrical grid. Recent legislative measures are being introduced to support the development of these systems, which could provide localized energy solutions and enhance overall grid reliability. The push for cleaner energy and innovative technologies continues as communities and stakeholders seek a balance between economic growth and environmental responsibility.

Conclusion

The ongoing evolution of the data center industry is reshaping the electricity landscape in Virginia, North Carolina, and Ohio. While the sector promises economic growth and technological advancements, it also underscores the pressing need for utilities to find sustainable ways to manage rising demand and ensure affordable energy access for all residents.

Deeper Dive: News & Info About This Topic

HERE Resources

Directional Aviation Tops Crain’s Northeast Ohio Private Companies List
Directional Aviation Tops Crain’s List of Private Companies
ServiceTitan Launches Atlas AI Platform for Contractors
Cleveland Achieves Record Visitor Spending
Horizons Incorporated Transitions to 100% Employee-Owned
Cleveland Cavaliers Open New Retail Store in Pinecrest
Cleveland Achieves Record Visitor Spending Milestone
Cleveland Tourism Sees Significant Growth in Visitor Spending
Cleveland Clinic Mercy Hospital Achieves Record Revenue Growth
Construction Industry Faces Challenges Amid Declining Activity

Additional Resources

Author: STAFF HERE CLEVELAND WRITER

CLEVELAND STAFF WRITER The CLEVELAND STAFF WRITER represents the seasoned team at HERECleveland.com, your premier source for actionable local news and information in Cleveland, Cuyahoga County, and beyond, delivering "news you can use" with in-depth coverage of product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news impacting the region—backed by years of expert reporting and robust community input, including local press releases and business updates, while providing top reporting on high-profile events like the Rock and Roll Hall of Fame inductions, Cleveland International Film Festival, and holiday parades, alongside key organizations such as the Cleveland Clinic, Cleveland Orchestra, and Great Lakes Science Center, plus leading businesses in manufacturing and healthcare like Sherwin-Williams and University Hospitals, and as part of the broader HERE network including HEREDayton.com, offering comprehensive, credible insights into Ohio's vibrant landscape. HERE Cleveland HERE Dayton

STAFF HERE CLEVELAND WRITER

ADD MORE INFORMATION OR CONTRIBUTE TO OUR ARTICLE CLICK HERE!

Stay Connected

More Updates

New headquarters of the El Centro Police Department

Would You Like To Add Your Business?

Submit