The growth of AI data centers across Loudoun County, Virginia, a region often referred to as “Data Center Alley,” has led to an unprecedented bottleneck in power connections for the large facilities. Energy supplier Dominion Energy is struggling to keep up with the surge in demand from these massive data hubs, with hookup requests taking anywhere from one to seven years to process for centers requiring more than 100 megawatts of electricity.
According to Bloomberg, this prolonged wait time only affects new large-scale data center projects that require significant amounts of power; existing projects already under evaluation will not be impacted by the delays. Almost all loads of this magnitude in Dominion Energy’s territory are attributed to data centers. The bottleneck is particularly problematic given the rapid expansion of AI data centers, which have seen their demand for electricity skyrocket by 500% between 2013 and 2022, according to a presentation from the power company.
The region’s growing reliance on data centers has even led to a change in the way grid operator PJM Interconnection forecasts future energy needs. Instead of providing a five-year outlook as it has in the past, Dominion Energy now requests a 15-year data center forecast due to soaring power demand from these facilities and other electrification trends like electric vehicles and 5G technology.
S&P Global’s recent analysis revealed that approximately 80% of Virginia’s data center industry is concentrated in Loudoun County, making the area a critical hub for this rapidly evolving sector. However, the rapid acceleration of AI data centers has hit its first major hurdle: power companies are facing massive backlogs, delaying timely hookups and causing concern among industry leaders and policymakers alike.
As the demand for electricity from AI data centers continues to surge, it is clear that energy providers must find ways to address these bottlenecks in order to maintain their vital role in supporting this crucial sector of the digital economy.
