Dominion’s Q3 2024 call included plenty of discussion on data centers, load growth in Virginia, and the implications for the future.
𝙒𝙝𝙖𝙩 𝙘𝙖𝙪𝙜𝙝𝙩 𝙢𝙮 𝙖𝙩𝙩𝙚𝙣𝙩𝙞𝙤𝙣?
Robert Blue, Chair, President & Chief Executive Officer of Dominion noted: “we have data center demand of over 21 gigawatts as of July 2024, which compares to around 16 gigawatts as of July 2023. These contracted amounts do not contemplate the many data center projects that are in development phase, and have not yet reached a point in the service connection process or a contract is executed”.
A few other notes:
Increasing REC Prices and Local Demand Pressures: The surge in forecasted REC prices, driven by escalating demand and Virginia-specific procurement requirements, adds cost pressures for data centers striving to meet renewable energy targets in the Virginia region.
Massive Data Center Energy Demand: Dominion Energy’s service area currently has over 21 gigawatts of committed data center demand, reflecting an accelerated growth trajectory. With substantial infrastructure investments underway, any project cancellations will require reimbursements, and escalating service agreements reflect ongoing capacity ramp-up.
Strategic Growth with Nuclear and Renewable Expansion: Dominion is pursuing extensive generation diversification, including SMRs (small modular reactors) to meet around-the-clock carbon-free energy needs for data centers, while also expanding offshore wind and natural gas projects in response to Virginia’s Clean Economy Act, which mandates a carbon-free grid by 2045.