Virginia’s Gov. Spanberger Targets Energy Costs as Power Demand Surges

Jan. 21, 2026 – In her inaugural address Saturday, Virginia Gov. Abigail Spanberger said that energy affordability would be a central focus of her administration, warning that rising costs are placing increasing pressure on Virginian households and businesses across the Commonwealth.

Spanberger’s emphasis comes as the Commonwealth faces rapidly growing electricity demand driven by data centers that support artificial intelligence, cloud computing, and broadband-enabled services, particularly in Northern Virginia, home to the world’s largest concentration of data centers.

“Virginians are paying far too much to heat and cool their homes,” Spanberger said in her address to the General Assembly, adding that while global energy markets are outside the state’s control, policymakers must take steps to lower monthly utility bills.

In separate interviews, Spanberger tied affordability concerns directly to data center growth, saying the state must balance economic development with grid reliability and consumer costs. She said large-scale energy users are placing new demands on Virginia’s power system and require closer coordination between state agencies, utilities, and regional grid operators.

Spanberger has proposed creating a cabinet-level position focused on energy policy to address rising demand, utility costs, and infrastructure planning, including engagement with PJM Interconnection, which manages the mid-Atlantic power grid.

Virginia utilities, including Dominion Energy, are already pursuing new transmission lines and substations to meet projected demand from data centers that strengthen broadband networks and cloud services nationwide.

State and federal officials have warned that without faster infrastructure development and permitting approvals, energy constraints could slow the expansion of data centers and the infrastructure they rely on. Analysts have also cautioned that continued demand growth could push electricity rates higher if supply does not keep pace.

Spanberger said energy policy decisions will be central to Virginia’s economic strategy, arguing that affordability, reliability, and infrastructure expansion must advance together as AI-driven services and broadband connectivity continue to scale.