AI data centers in Virginia cause 25% electricity price spike, county asks staff to cut usage

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County manager asks public sector workers to reduce consumption amid 25% price hikes

Hundreds of data centers in Virginia are putting major strain on the grid

The region is also facing temporary drought from low rainfall

Virginia's Henrico County is asking public sector employees to reduce electricity consumption after a recent spike in power costs.

Under the new demands set out by county manager John Vithoulkas, employees are being asked to turn off lights in unoccupied rooms, shut down computers at the end of every day, close blinds to reduce heat (and thus, air-con requirements), unplug unused appliances and avoid the use of portable space heaters.

These measures aim to counter to estimated $5 million rise in the country's annual electricity bill, caused by the near-25% increase in rates.

Virginia county warns of eye-watering electricity bills

Vithoulkas also warned employees on June 26 2026 that electricity rates for all county government buildings and schools would be rising by 24.9% from July 1.

The county manager also worries that additional electricity price increases could occur in future years, with Virginia now one of the fastest-growing data center hubs in the US.

Henrico County alone hosts 37 data centers, with a further 17 on the cards already. The state itself counts more than 400 active data centers within its borders, with Northern Virginia often referred to as 'Data Center Alley'.

Land availability, strong fiber and subsea cable connectivity and the proximity to Washington DC are among the attractions of locating new projects in Virginia, but a high concentration of data centers in the region has put serious strain on local grids.

But it's not just electricity that residents are being asked to ration. On July 1, Vithoulkas also asked residents to conserve water by taking shorter showers, running only full loads of dishes and laundry and disabling automatic lawn sprinklers due to temporary drought conditions following a period of below-average rainfall. Data center cooling requirements likely account for some of the county's water consumption.

Via 404Media