What’s on the line?
July 2025
Virginia hosts the largest data center market in the world. (courtesy ODEC)
by Kirby Jordan, Contributing Writer
Electricity not only powers our economy, but also powers our way of life.
When you power up, you expect electricity to be there. And it is there for homes, businesses, farms, schools and hospitals — every time, day and night, in every kind of weather. That’s reliability. Now more than ever, reliability also means innovation and investing in the future in order to maintain our electric grid.
INCREASING DEMAND MAY LEAD TO INCREASED RISK
For decades, electricity demand followed a mostly predictable trajectory. Ongoing industry shifts and recent developments have created significant disruptions to the status quo, putting the reliability of the entire electrical grid at risk.
Demand for power is rapidly increasing, driven by economic development, the electrification of vehicles and appliances, and data centers that support artificial intelligence. Data centers are large warehouse-like buildings that house computers and servers that store and transmit data. They typically run nonstop, requiring more power for equipment heating and cooling than most other commercial structures.
According to the Virginia Economic Development Partnership, Virginia hosts the largest data center market in the world and is home to approximately 35% (or nearly 150) of all known hyperscale data centers worldwide.
At the same time, many power plants across the nation have been retired or are forecasted to retire early, largely due to environmental concerns and related regulations. The fact that the power industry currently lacks adequate replacement resources exacerbates the problem, as retirements are outpacing the addition of new generation.
Multiple studies estimate electricity demand will far outstrip supply in the coming years, and they point to data centers as a significant factor in the equation. A report generated for the Virginia General Assembly in December 2024 predicts power demand in the commonwealth could double in a decade and rise by as much as 183% by 2040.
To put demand growth in perspective, a study by Virginia’s Joint Legislative Audit and Review Commission says future electricity consumption will require more than 30,000 gigawatt-hours per month, driven largely by data centers. Just 1 gigawatt is 1 billion watts — equal to nearly 2 million solar panels or 103 offshore wind turbines, according to the Department of Energy.
THE FUTURE REQUIRES A STRATEGIC RESPONSE
One thing is clear: Maintaining a reliable supply of electricity is more important than ever before.
Reliability means generating the electricity electric cooperative members need to power their lives and livelihoods.
Reliability means being prepared for the unexpected, like extreme weather when very hot and very cold temperatures cause electricity demand to spike.
Reliability means making smart, strategic decisions to guarantee baseload resources are maintained while simultaneously planning for the future.
That future includes ongoing developments in renewable energy. While renewable electricity generation may represent the new paradigm of power, it is not a reliable short-term solution by itself. Renewable energy presents real concerns, such as siting and permitting issues, rising material costs, construction timeframes, and its intermittent, weather-dependent nature. Today’s challenges necessitate careful planning and a diverse portfolio of power solutions to ensure the reliable electricity that our economy and communities rely on.