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The Grid Impact of Rapid Datacenter Expansion

This white paper examines how explosive datacenter growth is reshaping electricity demand, grid stability, and long-term utility planning. Drawing on JLARC Report 598, it outlines how Northern Virginia—the world’s largest datacenter market—now drives unprecedented power consumption and is forcing utilities to rethink generation capacity, transmission planning, and interconnection timelines. While focused on Virginia, the engineering and regulatory implications apply to every region experiencing rapid digital infrastructure expansion.

Key topics include:

- Virginia Background
- Current Consumption and Forecasted Demand
- Challenges: Generation and Transmission
- Grid Integration Constraints
- Policy Recommendations

Why utilities should care:
Datacenters are becoming one of the fastest-growing and most disruptive load types on the grid. Utilities nationwide are already confronting capacity shortfalls, transmission congestion, rising PJM capacity prices, and increasing community and regulatory pressures driven by datacenter expansion. Understanding these trends is essential for planning reliable service, prioritizing infrastructure investments, and protecting ratepayers from escalating costs. This white paper equips utilities with a clear view of the risks, growth drivers, and emerging policy frameworks shaping the future of grid resilience in a datacenter-dominated landscape.

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