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P-HealthX > Blog > Environmental Wellness > Virginia has the biggest data center market in the world. Can it also decarbonize its grid?
Environmental Wellness

Virginia has the biggest data center market in the world. Can it also decarbonize its grid?

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Last updated: 2024/06/09 at 2:58 PM
By admin 4 Min Read
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This story was originally published by Inside Climate News and is reproduced here as part of the Climate Desk collaboration. Despite being short-lived, the denial was unexpected. In March, Loudoun County, a suburb of Washington, D.C., in northern Virginia with the highest concentration of data centers globally, made a surprising move by rejecting a proposal to allow a company to construct a larger data center than the existing zoning permitted.

“At some point, we have to say stop,” remarked Loudoun Supervisor Michael Turner during the meeting, as reported by news site LoudounNow. “We do not have enough power to support the data centers we have.” While the decision was eventually overturned by county supervisors, who approved a smaller version of the project, the initial denial caused concern in Virginia. The state is grappling with the rapid expansion of data centers and how that affects its ambitious decarbonization objectives.

“The data center industry comprises about 2 percent of global carbon emissions. In approximately two years, it is projected to surpass the airline industry,” noted Tim Cywinski, a spokesperson for the Sierra Club’s Virginia chapter, advocating for a slowdown in data center development.

Dominion Energy, Virginia’s largest electric utility, anticipates data centers will be a primary driver of increasing energy demand in the state over the next 15 years. While Dominion has committed to decarbonizing its Virginia grid by 2045, in accordance with the Virginia Clean Economy Act, its latest utility plan suggests the need for new natural gas plants to meet demand.

“We are dedicated to achieving the goals of the VCEA. We are not backing down on our renewable efforts,” said Dominion spokesperson Aaron Ruby. “However, the clean energy transition is becoming more challenging due to unprecedented growth in electricity demand.”

Some environmental advocates believe the surge in data center growth jeopardizes Virginia’s zero-carbon goals, while others feel it can be achieved with better grid management. Regardless, the issue of accommodating the power demands of data centers is becoming increasingly urgent.

Data centers and Virginia have had a longstanding relationship, with the state becoming a hub for data centers over the past three decades. Despite concerns over the facilities’ environmental impact and power consumption, Virginia has incentivized data center construction through tax breaks. While this strategy has attracted investment and created jobs, it has also raised environmental and energy supply challenges.

Even though many data center companies have committed to clean energy goals, the rapid growth of data centers in Virginia presents a substantial challenge for utilities like Dominion. Their electricity demand is projected to skyrocket over the next decade, requiring significant infrastructure upgrades to meet their needs.

While disagreements exist over Dominion’s demand forecasts and reliance on natural gas plants, the reality remains that data centers are driving significant electricity demand growth in Virginia. As companies continue to expand, the state must find ways to balance their energy needs with its decarbonization goals and environmental concerns.

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admin June 9, 2024 June 9, 2024
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