Henrico County, Virginia, is asking staff to cut their electricity use — including by limiting the use of lights, chargers, and space heaters — as it prepares for a sharp increase in power costs.
The request points to a broader strain on the power grid as fast-growing demand, including from energy-intensive data centers, puts pressure on public budgets and monthly power bills.
What's happening?
Just before the new fiscal year begins, County Manager John Vithoulkas told employees in a June 26 message to start conserving electricity.
According to Henrico Citizen, Henrico's rates will rise by almost 25% on July 1, a change projected to increase annual electric costs by about $5 million across county and school buildings.
About 170 government entities in the Virginia Energy Purchasing Governmental Association, the group that works out electricity contracts with Dominion Energy, will see the same increase.
Henrico County Public Schools alone budgeted $14.6 million for electric service in the coming fiscal year, a 17% increase from the previously approved budget.
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Vithoulkas also said each department will be expected to identify ways to reduce expenses by 3% in the next budget cycle.
Why does it matter?
When electricity costs rise for a county, the effects do not stay confined to office buildings.
Higher utility bills can tighten school budgets, put pressure on public services, and make it harder for local governments to keep overall spending under control.
Henrico's situation is unfolding amid a larger boom in Virginia data centers. The county's eastern corridor now hosts at least 16 of the facilities, with additional development underway.
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Data centers that support cloud computing and artificial intelligence can consume enormous amounts of electricity, in some cases on a scale comparable to small cities.
AI can help utilities forecast demand, manage battery storage, and improve clean energy systems, but the infrastructure required to support it can also increase energy and water use, raise concerns about security and misuse, and contribute to higher costs if grid expansion is passed on to others.
State regulators in Virginia have already connected some of Dominion Energy's rising costs to growing electricity demand from data centers.
While public officials have not said data centers specifically caused this VEPGA rate increase, the broader connection between surging power demand and rising rates is becoming harder to dismiss.
What's being done?
For now, Henrico is focusing on conservation.
Among the actions Vithoulkas recommended were turning off lights in unused rooms, shutting down computers after work, lowering heat gain with blinds, unplugging idle chargers and appliances, and keeping space-heater use to a minimum.
He also said that each of those heaters can cost the county roughly $150 to $300 a year to operate.
The county has already invested in efficiency efforts over the years, including LEED-based construction standards and rooftop solar installations on some buildings.
Those upgrades can help reduce operating costs while also cutting pollution.
Henrico is also facing larger land-use decisions tied to future power demand.
The county has already approved substantial data center development, including QTS' plans for up to 17 facilities across more than 1,100 acres in Varina, even as officials debate how much additional growth the 2045 Comprehensive Plan should allow.
The debate extends well beyond Virginia, as communities across the country grapple with how to balance digital growth, grid reliability, clean energy goals, and affordability.
As Henrico Communications Director Ben Sheppard told the Citizen, "this email represents good fiscal stewardship and good environmental stewardship, both of which are core values of the county."
Vithoulkas added: "Each dollar we can save by conserving electricity is another dollar the county can reinvest into staff and the services we provide our residents."
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