Virginia’s economic future depends on access to reliable, affordable energy. The Commonwealth already hosts more than a third of the planet’s hyperscale data centers, for example, and plans are on the drawing board to deliver even more capacity in the decades ahead.
New data centers may be required to supply their own power at peak times, such as on steamy summer afternoons, to ease demands on the electricity grid. PJM, the grid operator that delivers electricity to Virginia and 12 other states, recently asked federal regulators to force large-load customers to produce their own power.
In addition, this month Gov. Abigail Spanberger proposed a Data Center Accountability Framework. “In the years before I took office, data centers came to Virginia and the Commonwealth did not have a clear or coordinated plan to address their impacts on Virginians—on their electric bills, their water, their land, their air, or their quality of life,” Spanberger said.
In part, the proposal would “limit the amount of electricity data centers can generate from on-site natural gas or behind-the-meter gas generation.” That approach would reduce the capacity available to generate electricity at peak times, according to criticism from key Republicans.
“The governor’s proposal is internally contradictory and raises serious questions about whether it can actually work,” Terry Kilgore, the House minority leader, told Fox News Digital. “What reliable, dispatchable source of power is supposed to fill the gap? That’s not a political question: it’s how the grid works.”
One of Spanberger’s fellow Democrats questioned the approach as well. “The governor is finally feeling the heat but still ignoring the fire,” state Sen. Louise Lucas said. “Her proposal does not end the $2 billion in sales tax exemptions provided to data centers.”
Data centers, of course, are only one piece of the larger energy puzzle. “The Commonwealth is required by law to develop a comprehensive strategy with input from industry professionals, engineers, scientists, advocates, state agencies, and the ratepayers who rely on our energy system every day,” according to the introduction to the 2026 Virginia Energy Plan.
Under former Gov. Glenn Youngkin’s administration, that was accomplished through what was known as an “all of the above” approach: encouraging Virginia “to go all-in on innovation in nuclear, carbon capture, and new technology like hydrogen generation, along with building on our leadership in offshore wind and solar.”
One expert told the Daily Signal that an “all of the above” energy policy will require the use of fossil fuels, at least for the present time. “It remains unclear whether Gov. Spanberger supports, opposes or is simply standing on the sidelines over Dominion Energy’s plans to build new natural gas generation. ‘All of the above’ is a political code phrase that means support for natural gas, and perhaps even coal as an energy source,” Steve Haner of the Thomas Jefferson Institute told the Daily Signal.
He notes that the former administration took a more pragmatic approach that seemed aimed at delivering energy in the immediate future. “Youngkin was committed to supporting expanded use of gas, and Youngkin had become hostile to the Virginia Clean Economy Act,” Haner said. “Spanberger is not only in support of the Clean Economy Act; but she is also trying to force Dominion—and perhaps NextEra if it takes over—to double down on those mandates. There is no sign she supports ‘all of the above.’”
In the longer term, Virginia is hoping to be a leader in cutting-edge technologies that can deliver clean, carbon-free energy. In Chesterfield County, a Massachusetts company named Commonwealth Fusion Systems is building the Fall Line Fusion Power Station, a commercial plant that could generate up to 400 megawatts of electricity when it is operational. The company has raised $4 billion to support its efforts.
“It’s clear that the free market policies of former Gov. Youngkin put out the welcome mat for innovative companies like Commonwealth Fusion to locate in Virginia. Now the race is on for fusion energy to move from being an unattainable promise of the future to a solution for the here and now,” Drew Bond, the executive chairman of C3 Solutions, told the Daily Signal.
Fusion smashes two atoms together to release energy and is the same process used by the sun. It has been elusive here on Earth, however, because it requires massive amounts of energy to get fusion started, meaning it uses more energy than it produces. Earlier this month a fusion startup in Washington state named Helion Energy announced it will “begin initial operations in 2028.” That’s a step back from its original plan, which was to be producing electricity by 2028.
For its part, the Virginia plant is said to remain on track. “Our plan continues to be to connect our ARC power plant and deliver electricity to the grid in the 2030s,” Christine Dunn, a spokeswoman for Commonwealth Fusion Systems, told the Daily Signal.
Bond predicts that fusion will eventually be transformative. “When it happens, it will be the biggest energy gamechanger since the invention of fire. Not only is it clean, firm, base load power, but it’s the safest possible option,” the C3 Solutions leader told the Daily Signal.
