Commercial Electricity Sales Have Soared in Virginia, Driven by Data Centers

Commercial electricity sales in Virginia have surged dramatically, increasing by nearly 30 million megawatt-hours between 2019 and 2025. This growth rate is second only to Texas, a state with a much larger population and industrial base. The primary driver behind this sharp rise is the rapid expansion of data centres in the state, which benefit from Virginia’s robust fibre optic infrastructure, ample land availability, and reliable power supply. Additional factors contributing to increased electricity demand include the growing adoption of electric vehicles and the electrification of buildings. The regional transmission organisation PJM Interconnection, which manages the electrical grid across Virginia and neighbouring states, forecasts that the Dominion zone—covering Virginia—will see the largest absolute increase in summer peak demand from 2026 to 2030. This surge is largely attributed to the escalating load from data centres, which have made the Dominion zone the world’s most concentrated data centre hub. Peak electricity demand in this zone has already risen significantly, with summer peaks in 2025 reaching 23,905 MW, a 23% increase since 2019, and winter peaks hitting 25,413 MW, up 45% from the 2019–20 season. The rise in peak demand presents operational challenges for utilities and grid operators, who must maintain sufficient resources and reserves to manage hourly and seasonal spikes in consumption. To address these issues, market participants are implementing a variety of strategies including demand response programmes, energy storage deployment, and infrastructure upgrades. Efforts are also underway to improve forecasting techniques, particularly for data centre loads, to better anticipate and manage the rapidly evolving demand patterns. The sustained growth in electricity consumption driven by data centres and electrification trends highlights the need for continued investment in grid resilience and flexibility. As Virginia’s electricity demand climbs, balancing reliability with sustainability will be critical to supporting economic development while meeting environmental goals. The evolving landscape underscores the importance of coordinated planning between utilities, regulators, and large consumers to ensure the grid can accommodate future growth without compromising stability.