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Virginia Data Center Intel
Latest data center news, projects, power and policy across Virginia — updated daily.
Recent Virginia data center news
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Data center demand pushes organizations to secondary markets: JLL
Data center demand remains strong despite concerns. JLL reports preleased capacity for 2024, necessitating early IT planning. Northern Virginia and Phoenix drive primary market activity. Secondary markets offer cost-effective solutions. Generative AI’s power needs spur activity in New York and New Jersey. Colocation providers and hyperscalers enhance infrastructure for AI services.
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Maryland ratepayer advocate urges FERC to reject PJM’s $5.1B transmission cost allocation plan
The Maryland ratepayer advocate is urging the Federal Energy Regulatory Commission (FERC) to reject PJM’s $5.1 billion transmission cost allocation plan. The dispute stems from PJM’s 2022 Regional Transmission Expansion Plan and the allocation of costs for transmission projects. The ratepayer advocate argues that the costs should be allocated based on who benefits from the projects, highlighting the economic benefits going to Virginia through the development of data centers. Additionally, the advocate objects to PJM’s plan to base incentives on 2022 load instead of 2028 forecast load. PJM has requested that the proposed cost allocation be allowed to take effect by April 9.
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FirstEnergy increases 5-year spending plan 44%, to $26B, drops 2030 carbon goal
FirstEnergy plans to increase its 5-year spending plan by 44% to $26 billion. The company will focus on improving its distribution system, including grid modernization and investments in clean energy technologies. However, FirstEnergy has dropped its goal of reducing carbon dioxide emissions by 30% below 2019 levels by 2030. The company still aims to achieve net carbon neutrality by 2050. FirstEnergy’s fourth-quarter income from continuing operations improved significantly compared to the previous year.
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Tracking electricity consumption from U.S. cryptocurrency mining operations
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Amazon to invest $10B in 2 Mississippi data centers
Amazon plans to invest $10 billion in two data centers in Mississippi. This follows the company’s previous investments of $2.3 billion in the state, including fulfillment centers, solar farms, and a wind farm. The investment is expected to create hundreds of high-tech jobs. Amazon has been increasingly interested in data centers to enhance its technological capabilities. The company has made significant investments in data centers across different states, such as Ohio and Illinois. Additionally, Amazon plans to demolish office buildings in Virginia to make room for more data center facilities.
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Virginia lawmaker proposes data center efficiency bill, possibly affecting Dominion Energy
A proposed bill in Virginia could impact Dominion Energy and data center operators. The bill requires data centers to meet certain energy efficiency standards and procure renewable energy. Data centers using diesel fuel for backup power would be disqualified from tax exemptions. Annual reports would be required to demonstrate compliance. Dominion Energy estimates data center load in Virginia to grow to 10 GW by 2035.
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Virginia proposes data center energy efficiency requirements
Virginia has proposed new energy efficiency requirements for data centers. Under the proposed HB 116 bill, data center operators would need to meet certain criteria to be eligible for tax exemptions. This includes having a power usage effectiveness score of 1.2 or less and achieving an energy efficiency level in line with the top 15% of similar buildings. Data centers would also be required to procure 90% of their electricity from carbon-free renewable energy sources by 2027. Data centers using diesel fuel would be disqualified from tax exemptions. Operators would need to submit annual reports on various factors to demonstrate compliance.
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PJM board approves $5B in transmission projects to be built by Dominion, FirstEnergy, others
PJM’s board has approved $5 billion in transmission projects to be developed by Dominion, FirstEnergy, and others in response to the planned data centers in Virginia and Maryland, as well as announced generation retirements. The projects were selected based on their ability to meet system needs, utilize existing rights of way, and have cost and schedule risks. However, concerns have been raised by state utility regulators about PJM’s transmission planning processes, calling for changes and extended public consultation.
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Meta selects DPR for $1B Arizona data center
Meta, the parent company of Facebook, has selected DPR Construction to build its $1 billion data center in Mesa, Arizona. The project is a greenfield development encompassing over 2.5 million square feet of space. Once completed in 2026, the Mesa data center will be one of the most advanced and energy-efficient in the world, using 100% renewable energy. DPR has previously delivered data centers for Meta in Oregon, North Carolina, and Sweden. The Phoenix region has seen a project boom in manufacturing and data center construction, including a $600 million Google data center. Demand for data center construction in the US remains strong, with activity increasing by 25% year-over-year in the first half of 2023.
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Utility regulators urge PJM to move away from ‘reactive’ planning for grid reliability
Utility regulators are urging PJM to enhance grid planning to address rising costs for transmission projects due to factors such as data center load growth and power plant retirements. OPSI’s letter highlights concerns about the need for more proactive solutions and comprehensive grid reliability strategies, emphasizing the importance of holistic planning.