Dominion Energy’s Long-Term Investment in Natural Gas Sparks Environmental Concerns in Virginia
Dominion Energy recently released its 2024 integrated resource plan, which details its energy strategy through 2039. The plan underscores Dominion’s significant investments in natural gas infrastructure to meet rising energy demands while committing to clean energy projects like solar, offshore wind, and energy storage. Environmentalists, however, are critical of the company’s continued reliance on fossil fuels, especially in light of climate change and Virginia’s push for renewable energy through laws like the Clean Economy Act.
One of the major drivers of increased energy demand in Virginia is the state’s data center industry, particularly in Loudoun County, known as the data center capital of the world. Dominion aims to take an “all of the above” approach to meet this demand, including potential hydrogen integration into gas plants. Still, the company faces pushback for not retiring fossil fuel assets and for projections showing potential carbon emissions increase if environmental regulations are rolled back.
The plan has drawn sharp criticism from environmental advocates who argue that Dominion’s reliance on natural gas contradicts the urgency of the climate crisis and casts doubt on the utility’s clean energy transition.
Read the Full article at InsideClimateNews
Hyperscalers Go Nuclear: A New PR Battle Begins
Last week, Google became the latest hyperscaler to secure a deal for nuclear energy to power its data centers, following in the footsteps of Amazon Web Services (AWS), Microsoft, and Oracle. The move towards nuclear power is unsurprising given the industry’s rapid growth and increasing energy demands. As traditional grids struggle to keep up and renewables face reliability issues, hyperscalers see nuclear as a cleaner, more stable solution.
However, they are also facing a potential PR battle. With nuclear power still stigmatized as dangerous, particularly among environmentalists and “Not In My Backyard” (NIMBY) activists, these tech giants will need to invest in public education to reshape the narrative around nuclear energy. Companies like Microsoft, planning to use a restarted Three Mile Island reactor, may face more opposition than others, such as Google and Oracle, who are turning to newer small modular reactors (SMRs), which have built-in safety features.
Read the full article at Fierce Network
In Indiana, Advocacy Group Calls for Data Center Moratorium
The Citizens Action Coalition (CAC), a utility-focused advocacy group, has called for a moratorium on new large data centers in Indiana. The group is concerned about the excessive power consumption and potential cost burdens associated with “hyperscale” data centers, which use significantly more electricity than entire residential populations. The CAC fears that the state’s growing data center presence, fueled by tax subsidies and incentives, could increase residents’ utility bills.
Indiana has attracted numerous data center projects since the 2019 enactment of a data center-specific sales tax exemption. These centers benefit from reduced costs on equipment, software, and energy infrastructure, potentially saving billions. However, the CAC warns that the state’s electricity supply may not be ready for the demand these centers place on the grid, urging lawmakers to study the issue and implement policies before allowing further expansion.
Read the Full Article at News From The States
Commentary on How Virginia’s SCC to Address Data Center Growth: Lessons from Ohio’s Utility Regulations
In a recent Op-Ed, a volunteer with the Virginia chapter of The Sierra Club diuscusses how the State Corporation Commission (SCC) is preparing to address the impact on utility planning by data centers and what they can learn from Ohio. Inspired by Ohio’s approach, where utilities like AEP Ohio have proposed long-term contracts requiring data centers to pay for at least 90% of their projected power use, Virginia’s SCC will hold a technical conference in December. This meeting will explore topics like contract terms and transmission costs for large energy consumers, aiming to prevent burdens on other ratepayers if the data center demand shifts or declines.
Ohio’s proposal stems from concerns over the immense energy needs of data centers, which differ from traditional industries like factories. Data centers can relocate more easily if energy costs drop elsewhere, and some question whether the projected AI-related demand will materialize or if energy-efficient advancements might reduce consumption. The outcome of this discussion is crucial as Virginia navigates its growing data center industry, which has already seen tax incentives increase and fossil fuel expansion plans from Dominion Energy. The SCC’s involvement offers a chance to bring balance and foresight to the state’s approach.
Read the full opinion piece at Virginia Mercury
Rising Data Center Fires Prompt Calls for Stricter Regulations on Lithium-Ion Battery Safety
Recent fires at data centers in Singapore, India, and South Korea have highlighted concerns over the effectiveness of current fire safety measures, with experts pointing to the risks associated with lithium-ion (Li-ion) batteries used in uninterruptible power supply (UPS) systems. According to JLL’s Andrew Green, these batteries, while essential for energy storage, present a fire hazard if exposed to oxygen. Investigations into these incidents are prompting data center operators to review safety protocols, emphasizing introducing stricter industry regulations shortly. However, the financial burden of implementing these safety improvements, particularly replacing Li-ion batteries, presents a challenge for balancing regulatory compliance with operational efficiency.
Read the full article at International Fire and Safety Journal
