Increasing power demand from a growing number of data centers, many located in Northern Virginia, has made rising utility costs a key issue for Gov. Abigail Spanberger (D) in her first days in office.
In her first address to the Virginia General Assembly yesterday (Monday), Spanberger outlined her Affordable Virginia Agenda, a set of proposals addressing energy, health care and housing costs. Spanberger also issued an executive order on her first day in office that directs her cabinet members and agencies to identify policy changes that would reduce costs for Virginians in energy and other areas.
The new governor has expressed interest in creating a new cabinet position focused on energy use. She has shown sympathy for initiatives to make Virginians’ homes more energy-efficient and increase power supply and energy storage in the commonwealth, while also pledging to rejoin an initiative to reduce greenhouse gas emissions.
“Virginians are paying far too much to heat and cool their homes, and while we cannot control global energy markets, there are things we can do to lower monthly utility bills for Virginia families,” Spanberger said in remarks to the Democratic-led General Assembly.
Virginia is home to a growing number of data centers, and Loudoun County’s Ashburn community is nicknamed “Data Center Alley” for hosting the world’s greatest concentration of data centers. Dominion Energy, Virginia’s largest electric utility, has pursued power line expansions and new substations in Northern Virginia to meet the power needs of future data centers.
In one of his last acts in office, former Gov. Glenn Youngkin (R) joined Maryland Gov. Wes Moore (D), Pennsylvania Gov. Josh Shapiro (D) and the Trump administration on Friday in pressuring PJM, the nation’s largest electric grid operator, to boost power supplies and keep electricity bills from rising even higher.
Federal officials said doing so is essential to win the artificial intelligence race against China, even as voters raise concerns about the enormous amount of power data centers use and analysts warn of the growing possibility of blackouts in the mid-Atlantic grid in the coming years.
The White House and governors want the mid-Atlantic grid operator to hold a power auction for tech companies to bid on contracts to build new power plants, so that data center operators, not regular consumers, pay for their power needs.
Trump and governors are under pressure to insulate consumers and businesses alike from the costs of feeding Big Tech’s data centers. Meanwhile, more Americans are falling behind on their electricity bills as rates rise faster than inflation in many parts of the country.
The White House and governors don’t have direct authority over PJM, but grid operators are regulated by the Federal Energy Regulatory Commission, which is chaired by an appointee of President Donald Trump.
“We need for PJM to take action, we need for PJM to take it seriously,” Moore told reporters. Youngkin called it a “massive, massive crisis.”
In an interview with WTOP, Spanberger shared her intention of creating a cabinet position focused on addressing energy challenges, including working with PJM on the cost of power expansion.
“I look forward to having someone on the ground in our cabinet meetings who brings that focus to every one of our conversations, so that whether it’s negotiations with PJM, or from a regional perspective, whether it’s endeavoring to strengthen affordability priorities, especially in the energy space, lower costs, or, you know, increase overall generation that we have that perspective in all that we are doing as an administration,” Spanberger told the outlet.
Meanwhile, Spanberger will have a strong Democratic majority in the Virginia House and Senate to pursue her Affordable Virginia Agenda bills.
One bill by Del. Rip Sullivan (D) would increase energy storage for high-demand periods to replace expensive peak power. That would come by requiring electric utility companies to petition the State Corporation Commission for increased energy storage targets. Youngkin had vetoed the bill in 2025.
“Energy storage allows us to capture cheaper power and use it during peak demand — when prices are highest,” said Spanberger in remarks to the General Assembly. “That means savings for families and a more reliable grid for everyone.”
Bills by Del. Mark Sickles (D) and Sen. Kannan Srinivasan (D) call for utility companies to expand programs to help low-income households improve energy efficiency in their homes.
“Simple improvements like better insulation and weatherization can save families hundreds — even thousands — of dollars per year,” Spanberger said.
The Democratic governor also favors the expansion of solar, nuclear and offshore wind energy to boost energy independence. A new bill by Del. Paul Krizek (D) would allow electric customers to use small portable solar generation devices to offset electricity use and prohibit interconnection requirements, fees or approvals from the utility company.
A federal judge ruled Friday that work on a Virginia offshore wind project could resume. The Trump administration announced last month it was suspending leases for at least 90 days on five East Coast offshore wind projects because of national security concerns. Its announcement did not reveal specifics about those concerns.
Developers and states sued in an effort to block the order. Dominion Energy Virginia, which is developing Coastal Virginia Offshore Wind, was the first.
In federal court in Virginia on Friday, a judge said he was granting Dominion Energy’s request for a preliminary injunction, according to the record from the hearing. This allows construction to resume while Dominion Energy’s lawsuit challenging the government’s order proceeds.
Coastal Virginia Offshore Wind, under construction since early 2024, will provide 176 offshore wind energy turbines with enough electricity for about 660,000 homes.
Spanberger called the offshore wind development “one of the largest infrastructure projects in Virginia’s history” and criticized the Trump administration’s actions.
“While I was glad to see the court ruling on Friday that temporarily blocked this action by the federal government, we all know that this battle is far from over,” Spanberger said. “This project will create thousands of jobs and generate billions of dollars in economic activity in Hampton Roads, and as governor, I will do everything in my power to make sure it continues to move forward.”
In her address, Spanberger said the state will rejoin the Regional Greenhouse Gas Initiative, a multi-state cooperative to reduce greenhouse gas emissions. Youngkin, who had removed Virginia from RGGI, warned that electric bills could increase with the fee charged to electric customers if the state rejoins the initiative.
But Spanberger says RGGI provides cost savings for energy and environmental initiatives.
“RGGI generated hundreds of millions of dollars for Virginia — dollars that went directly to flood mitigation, energy efficiency programs, and lowering bills for families who need help most,” Spanberger said. “Withdrawing from RGGI did not lower energy costs. In fact, the opposite happened — it just took money out of Virginia’s pocket. It is time to fix that mistake.”
