October 30, 2025
MANASSAS, Va. — As Virginians head to the polls for Tuesday’s general election, voter discontent over the proliferation of data centers and rising electricity prices has become a pivotal issue, highlighting a growing tension between economic development and affordability.
The debate, which has been "tearing apart towns" according to one candidate, represents the first time the state's welcoming stance toward the digital economy's megaprojects has been a significant factor in a statewide election cycle.
Virginia, the world's largest data center hub with more than 640 facilities, is at a crossroads. Once hailed as economic boons, these energy-intensive buildings are now increasingly contested in communities where new projects are proposed.
The issue cuts across party lines. Bob Holsworth, a longtime Virginia political analyst, noted that data centers are a "bonanza" for local governments, generating substantial tax revenue without straining public services with new residents. However, many voters now question whether the industry is a net benefit, citing a "pernicious suck on state resources" and rising living costs.
Power bills in Virginia and other southeastern states rose 6.7 percent in the 12 months leading to last August. A December study from the legislature’s oversight agency projected residential customers could see monthly increases of nearly $40 by 2040.
This disquiet prompted a flurry of at least 29 bills in the General Assembly this year aimed at regulating data center locations, noise, environmental impact, and power generation. Nearly all failed. The most prominent, a bill requiring noise assessments, was vetoed by Republican Gov. Glenn Youngkin, who called it "unnecessary red tape."
The state’s major utility, Dominion Energy, faces intense criticism. In an ongoing case before the Virginia State Corporation Commission (SCC), Dominion has proposed raising rates for average residential customers by $21 per month over two years while creating a new rate class for high-power users like data centers to shift future infrastructure costs away from residents.
The debate is particularly acute in local races. In Loudoun County's District 30, Democratic candidate John McAuliff is challenging Republican Del. Geary Higgins.
In the governor's race, a bellwether contest where Democrat Abigail Spanberger holds a lead over Republican Lt. Gov. Winsome Earle-Sears, data centers are part of a broader affordability discussion.
At their lone debate, Spanberger reiterated that large utility users should "pay their fair share" and suggested legislative action might be needed. She advocates for data centers to develop "clean on-site and off-site generation and storage" and supports rejoining the Regional Greenhouse Gas Initiative.
The human impact of rising costs was laid bare during SCC hearings. Crystal Franklin, a Navy hospital corpsman from Dumfries, testified that her energy bill has jumped from $150 to $210 monthly, and the proposed hike would push it to $240.
The projected growth in energy demand is staggering. A forecast from the University of Virginia's Weldon Cooper Center predicts sales could more than double by 2040, a surge requiring a "world war-level of industrial commitment," according to emeritus professor William Shobe.
With Dominion seeking approval for billions in grid upgrades, a key question remains, as posed by energy consultant Scott Norwood: whether there will be "any net benefit to Dominion’s 2.7 million existing customers, or to Virginia’s economy as a whole, as a result of the growth in data centers."
Source: eenews
