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BloombergNEF forecasts rising energy prices in Virginia data center hub through 2035
Sunday, March 29, 2026 at 03:20 PM
BloombergNEF forecasts for 2035 indicate rising electricity costs in Virginia's Data Center Alley due to the massive expansion of AI infrastructure and data center energy demand within the PJM interconnection region.
Context
A new BloombergNEF (BNEF) forecast indicates that U.S. data center power demand could surge to 106 GW by 2035, representing a 36% increase from previous estimates. This growth is driven by the massive scale of new AI-focused projects, with over 25% of recently announced facilities exceeding 500 MW. In the PJM Interconnection region, which includes Virginia’s "Data Center Alley," load is expected to grow by 19.3 GW by 2035. Aniruddh Mohan noted via social media that these forecasts for 2035 PJM energy prices are particularly relevant to the future affordability of the region.
While Dominion Energy has already seen 20% annual growth in data center demand over the last decade, the sheer volume of new load is creating an inflection point for grid reliability and pricing. BNEF analysts suggest that even with high participation in demand response programs, power prices in Virginia could reach approximately $64.30 to $84.46 per MWh by 2035. To manage this, Dominion plans to invest $65 billion through 2030 to expand transmission and generation infrastructure as the industry begins to diversify into central and southern Virginia.
Sources (9)
the future of automated commercial motor vehicles: impacts ...U.S. data center power demand could reach 106 GW by 2035: BloombergNEF | Utility Dive6/11/2024 - Regular - IIS Windows Server - Roanoke Countyunigrams.txtAI and the Power Grid: Where the Rubber Meets the Road | BloombergNEFHow much would flexible data centers really reduce rates in PJM? | Latitude MediaDaniel Sada G. @dsada83 - Twitter ProfileDominion Energy (“the Company”) submitted a data center ...
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