The world's largest data center market.
Among the lowest residential rates in the country.
Virginia is home to more data center capacity than any other jurisdiction on the planet. Yet Virginia residents are still paying among the lowest electricity rates in the country. That is not an accident.
It is partly because large commercial customers like data centers carry a disproportionate share of transmission infrastructure costs. That cost-sharing dynamic keeps residential bills lower, not higher. Dominion Energy has projected residential electric bills through 2039 growing by only about 2.5% per year, which is below normal inflation, with rates trending 14% below the national average.
Source: Dominion Energy bills set to rise by 50% by 2039 | 13 News Now
The Virginia State Corporation Commission has already addressed forward-looking rate concerns by creating a new rate class requiring data centers to sign 14-year contracts with demand charges. Dominion has stated those protections ensure data centers pay their fair share and prevent costs from being shifted to residential customers.
Source: Virginia Regulators Approve New Dominion Rates, Assign More Costs to Data Centers | Inside Climate News
What is actually driving your bill up
Average Dominion Residential Bill
Where your $172/month actually goes
Virginia bills include base rates plus a set of "riders." These are fee line items that don't appear on your statement but are charged every month. Here is how they break down, by what's driving them.
| Offshore wind project shareDominion's portion of an $11.5B offshore wind development | $11.23 ↑ $2.60 |
| Clean energy certificatesDominion is legislated to buy green-energy credits it doesn't generate | $7.98 ↑ $3.00 |
| Clean energy projectsBroader portfolio of state-mandated renewable investments | $3.67 ↑ $1.48 |
| Nuclear plant upgradesMaintenance and modernization of existing nuclear capacity | $3.48 |
| Coal site cleanupRemediation of sites including Possum Point | $1.77 ↑ $0.59 |
| Small modular reactor (development)Early-stage charge; will rise once construction begins | $0.29 |
| Fuel riderNatural gas, diesel, coal, and purchased power from the regional auction - the single largest line on any Dominion bill | $29.68 |
| Transmission riderNew towers, lines, and grid upgrades, on top of a $9.70 base transmission charge | $11.79 |
| New gas peaker plantHandles peak demand spikes; rate went into effect March 2026 | $0.75 New |
| Data center capacity costs (residential share)After Dominion's own generation and SCC's GS-5 rate class protections, the portion passed to residents | $1.98 |
| Base rate increaseFirst base rate hike since 1992, effective 2026 | $11.34 New |
| Transmission base charge | $9.70 |
| Capacity reserve (base rates)Power reserved for future years | $1.98 |
Source: Prince William Times (April 1, 2026) (Peter Cary) • Joint Legislative Audit & Review Commission • RealClear Energy (May 13, 2026) • Virginia State Corporation Commission October 2025 report • Dominion Energy · NOVEC
What four major studies found
The claim that data centers drive up residential electricity rates has been examined by multiple independent research organizations.
Data centers are not the primary cause of rising rates
LBNL researchers found that data centers can actually lower electricity rates by spreading fixed grid infrastructure costs across a larger customer base. The more demand on the grid, the lower the per-unit cost for everyone.
Retail rates have largely tracked inflation, not data center growth
A CRA study commissioned by the Edison Electric Institute found that Americans' electric bills have been widely protected from increases related to data center development. Where rate increases did occur, the timing and location were not consistent with the timeline of data center growth.
No proven link between data centers and electricity prices
IER examined all 50 states and found no relationship between the number of data centers and electricity prices. The top ten data center states averaged 14.46 cents per kWh in 2025, virtually identical to the 14.39 cent average across all other states. Notably, states where electricity sales grew faster actually paid less for electricity.
No evidence of historical cost shifts from data centers to ratepayers
An E3 whitepaper examining quantitative evidence across utility territories found no evidence of historical subsidization; data center payments to utilities exceeded the incremental cost to serve each facility, generating net surplus revenue. Under the right conditions, large loads can lower rates for all customers.
