Virginia’s new energy plan: Make the AI boom work for — not against — us

Virginia’s new clean energy plan, unveiled Oct. 1 by Democratic Gov. Abigail Spanberger, rejects calls to weaken the state’s zero-carbon mandate despite rising utility bills and surging electricity demand from data centers. Instead, the plan leverages data center growth to fund carbon-free energy expansion, doubling down on the Virginia Clean Economy Act and participation in the Regional Greenhouse Gas Initiative. State officials say the plan proves ambitious clean energy targets are achievable even amid rapid demand growth.

The plan, updated every four years by state law, uses advanced modeling software to chart four utility pathways to net-zero carbon by 2050 while accommodating an 85% increase in electricity demand. All pathways rely on massive solar expansion—between 1.2 gigawatts and 1.8 gigawatts annually—and increased distributed energy resources like customer-sited solar and batteries. Three of the four routes incorporate demand flexibility, allowing data centers to reduce grid reliance during peak demand by using batteries or on-site clean energy.

A fifth modeled scenario, which scraps clean energy goals, projects nearly doubling carbon emissions and $145 billion in health impacts, despite saving at least $90 billion in electricity system costs. The plan estimates data centers could contribute $265 billion to utilities by 2050, helping offset the $422 billion total cost of meeting future energy needs. Officials emphasize that costs can be managed through proper allocation, ensuring most customers do not bear the burden.

While not legally binding, the plan provides critical data for regulators and legislators evaluating Dominion Energy’s proposals for new gas plants or potential data center reforms. Environmental groups, though still urging a pause on new data centers, praised the plan for its detail and innovation compared to the previous administration’s approach. Supporters highlight its specificity in demonstrating how clean energy goals can be met alongside growing demand.