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Power crunch11/27/2023 ![]() County officials are currently in the process of updating the guidelines for where data centers should be built and what they should look like, and wants industry feedback prior to deciding on new rules in September. The news may also prompt competition for the remaining space in Ashburn, which has one of the lowest vacancy rates for data center space in the country.Ī slowdown in new development also could have implications for the county budget in Loudoun County, where data centers are expected to create $575 million in tax revenue for the county budget in 2022, or about 31 percent of the county’s revenue. If power delays persist in Eastern Loudoun, future development may shift to nearby sub-markets like Leesburg, Prince William County, and Frederick County in Maryland. The power delays could have an impact on where and when new data centers are built in Northern Virginia, reshaping the map in a strategic hub for cloud infrastructure. This will not impact residential or small business customers.” “That growth is now accelerating, which is resulting in transmission constraints in a pocket of eastern Loudoun County that will impact new connections for large customers. “The data center industry has grown substantially in Northern Virginia in recent years, and we’ve made significant investments in new infrastructure to meet the growing demand for electricity,” Dominion said. In a statement, Dominion Energy noted the extraordinary growth in the Ashburn cluster. “The power company did not give definitive answers to most of the relevant questions we have, but they have been transparent about the potential issue, and they’re working very diligently to finalize their assessment,” Power said, adding that there “will obviously likely be a slowdown in delivery of new supply in the largest and most consistently in-demand data center market in the world.” the pipes or the power line infrastructure, not the actual power.” “The cause has been described to me as transmission, not generation, i.e. “Dominion Energy, which is the primary power provider in (Loudoun County), informed its major customers very recently of a potential pinch point in Eastern Loudoun County that could delay deliveries until 2026,” said Andy Power, the President and Chief Financial Officer of Digital Realty, in the company’s earnings call Thursday evening. There is 26 million square feet of data center space in Loudoun County, with about another 5 million square feet in development, and many more projects in the planning stages. The region houses data centers that support Internet hyperscale platforms like Amazon Web Services, Microsoft, Google and Meta, as well as many enterprise companies. That could slow or halt some development around Ashburn, the most active market for cloud computing infrastructure. Dominion Energy has begun telling data center companies that power for some new facilities in Eastern Loudoun County will be delayed, perhaps for years. The world’s largest data center market is facing a power shortage.
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