Dominion Energy is facing major backlash after unveiling a plan that could raise monthly bills for millions of Virginians and restructure how big tech companies pay for their energy use, per the Virginia Mercury. The proposal comes amid mounting tension over the state's booming data center industry — and who should bear the costs of keeping the lights on. 

What's happening?

Dominion, which supplies power to more than two million homes across the state, is asking regulators to approve a rate hike that would add more than $20 a month to the average customer's bill by 2027. 

The company says the increases are needed to cover rising costs for essential materials such as transformers and power poles, as well as higher fuel prices. 

At the same time, Dominion wants to create a new rate class for heavy power users, such as data centers, that can use up to 25 megawatts of energy or more per month. The proposed changes would force high-load users to sign long-term contracts, ensuring they continue paying for the infrastructure required to power their operations. 

Critics argued the move unfairly shifts financial risk onto consumers and protects Dominion's profits. 

"The current system is not equipped to handle this growth," Nathaniel Benforado told the paper. 

Why is the rate hike important?

According to the state, Virginia is home to around one-third of the world's hyperscale data centers, mostly in Northern Virginia. These facilities consume enormous amounts of electricity and water, straining the state's grid and driving up infrastructure costs. 

Environmental advocates warn that unchecked data center expansion could also lead to more pollution from gas and coal plants, as well as higher household energy bills for many across the country. 

While artificial intelligence can also help reduce pollution, there's no doubt it consumes massive amounts of power and water to cool its servers, straining power grids already struggling to transition to cleaner energy sources. 

What's being done about the proposal?

The Virginia State Corporation Commission is reviewing Dominion's proposal, with hearings expected to continue throughout the year. Some lawmakers are calling for stronger oversight to ensure data centers pay their fair share, so citizens aren't left footing the bill. 

In the meantime, advocacy groups are urging the state to invest more in affordable clean energy solutions to meet rising demand sustainably. Together, these steps could help Virginia rebalance its booming tech economy with the need for a more affordable, sustainable energy future. 

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