"Turn Off the Lights": Virginia County With 37 Data Centers Faces 25% Electricity Rate Hike
There's something deeply ironic about what's happening in Henrico County, Virginia right now.
This is a place that spent years rolling out the red carpet for data center operators. Tax breaks? Check. Ample land? You bet. Fast fiber connections? Absolutely. The pitch worked so well that today, Henrico County is home to 37 operating data centers, with at least 17 more on the way.
And yet, on June 26, 2026, County Manager John Vithoulkas sent an email to thousands of county employees asking them to do something that feels almost absurd: turn off the lights.
Starting July 1, the electricity rates for all Henrico County government and school facilities jumped by 24.9%. That's not a typo. Nearly 25%. The county now faces an estimated $5 million in additional electricity costs over the next fiscal year.
Here's the kicker: Vithoulkas compared this request to the austerity measures the county implemented during the Great Recession more than 15 years ago.
So let me ask you something: How did we get here? A county packed with some of the most energy-hungry facilities on the planet is now asking teachers and government workers to unplug their phone chargers and close their blinds.
The answer is more complicated, and more revealing, than you might think. And if you live in Virginia, it's about to hit your wallet, too.
What's Happening in Henrico County?
Let's start with the email that started it all.
On June 26, 2026, County Manager John Vithoulkas sent a memo to every county employee. The message was direct and sobering:
"Beginning July 1st, the rate we pay for electricity used in all Henrico County government and school facilities will increase dramatically, by 25%, increasing costs by an estimated $5 million next fiscal year. We anticipate more rate increases for electricity in the years ahead."
The conservation request was specific. Vithoulkas asked employees to:
- Turn off lights when leaving workspaces
- Shut down computers and laptops at the end of the day
- Adjust blinds to manage heat from sunlight
- Unplug unused appliances and chargers
- Limit or avoid using space heaters - which, by the way, can cost the county $150 to $300 per year each
"Each dollar we can save by conserving electricity is another dollar the county can reinvest into staff and the services we provide our residents."
The county manager even drew a parallel to the Great Recession - a comparison that underscores just how serious this moment feels.
But here's what makes this story truly remarkable: Henrico County isn't some remote rural community struggling with infrastructure. It's a growing suburban county outside Richmond with nearly 350,000 residents. It's also becoming a major hub for the very industry that's driving up its electricity costs.
Why Are Electricity Rates Rising?
So what's behind this staggering 25% increase?
The Short Answer: Data Centers + AI + Geopolitics
The county's electric bill is going up due to a combination of factors:
1. Unprecedented demand from data centers powering artificial intelligence - This is the big one. Data centers are voracious consumers of electricity. They run 24/7, 365 days a year. They require massive cooling systems. And they're multiplying at breakneck speed.
2. Rising fuel costs exacerbated by the Iran war - Global energy markets have been volatile, and Virginia isn't immune.
3. Grid infrastructure costs - When you build new power plants and transmission lines to serve data centers, everyone pays for them, not just the data centers.
The Data Center Boom, By the Numbers
Let's put this in perspective.
Virginia now has the largest concentration of data centers in the world. The state is home to 35 percent of all known hyperscale data centers. Northern Virginia alone accounts for approximately 35% of the world's data center facilities.
Henrico County is part of this growth. With 37 data centers already operating and 17 more in the pipeline, it's becoming a significant node in the data center ecosystem.
But here's the thing: every single one of those facilities is a massive energy consumer.
A typical hyperscale data center can consume as much power as 100,000 households. The six largest data centers in Northern Virginia's "Data Center Alley" draw a combined 781 megawatts.
To put that in perspective, that's enough electricity to power hundreds of thousands of homes, all concentrated in a handful of buildings.
The Numbers Behind the Crisis
Let's get specific about what these numbers actually mean.
What Henrico County Is Facing
- 25% rate increase effective July 1, 2026
- $5 million in additional annual costs
- 37 existing data centers, with 17 more planned
- Rate increases apply to all VEPGA member counties - about 170 municipalities north of Richmond
What Virginia Residents Are Facing
- Typical residential customers will see monthly increases of $11.24 in 2026 and an additional $2.36 in 2027
- Data centers now consume approximately 40% of Virginia's electricity - up from less than 5% in 2010
- Virginia's energy demand is projected to rise 183% by 2040 - compared to just 15% without data center growth
- Wholesale electricity prices near data centers have climbed as much as 267% over five years
- PJM Interconnection logged more than $9.3 billion in added costs for the 12 months ending June 2025
The Real-World Impact
Here's what this looks like on the ground. One Virginia resident, John Steinbach of Manassas, saw his January 2026 electric bill hit $281. The previous month? It was closer to $100.
"It's just so far beyond any bill that I've ever had."
He's not alone. A January 2026 survey found that nearly three-quarters of Virginia voters blame data centers for higher electricity costs. Nationally, 78% of adults expressed concern that new facilities would push bills higher.
How Data Centers Are Reshaping Virginia's Grid
This isn't just a Henrico County problem. It's a Virginia problem and increasingly a national problem.
The PJM Pressure Cooker
PJM Interconnection is the largest electric grid in the United States, covering 13 states and the District of Columbia. And it's under immense strain.
PJM expects the Dominion zone (which covers Virginia) to experience the largest absolute increase in summer peak demand between 2026 and 2030, largely because of data center growth.
On July 2, 2026, PJM's grid demand was expected to hit 166.3 gigawatts - breaking an all-time record set 20 years ago.
In Northern Virginia, home to the world's largest concentration of data centers, spot power prices climbed sharply as temperatures approached 100 degrees Fahrenheit. At one point, wholesale electricity prices in Virginia spiked to more than $1,000 per megawatt-hour.
The Infrastructure Challenge
Here's the dirty secret that nobody wants to talk about: building new power infrastructure is expensive, and someone has to pay for it.
A JLARC report found that "current utility rate structures are not designed to account for sudden, large cost increases from new infrastructure construction to serve a relatively small number of very large customers".
Translation: when utilities build new transmission lines and power plants to serve data centers, those costs get spread across all ratepayers - including you.
And those costs are only going to grow. Dominion Energy recently reported that total future data center demand for electricity in Virginia has reached 51,000 megawatts - enough to power 12.75 million homes.
What Virginia Is Doing About It
Lawmakers and regulators aren't sitting idly by. Several significant policy changes are underway.
SB 253: Shifting the Burden
Senate Bill 253, introduced by Senator Louise Lucas, aims to ensure that data centers pay their fair share of electricity costs.
The bill directs the State Corporation Commission to ensure that electricity costs for customers demanding 25 megawatts or more (including data centers) are not subsidized by residential customers.
The SCC estimates this would result in:
- A 3.4% reduction in residential rates (about $5.52 per month)
- A 15.8% increase for data center customers
The changes are set to take effect January 1, 2027.
New Electricity Consumption Tax
Beginning July 1, 2026, Virginia implemented a new electricity consumption tax on data centers of $0.011 per kilowatt-hour.
This tax is expected to generate approximately $600 million annually for Virginia's general fund over the next two years. The revenue will go toward infrastructure and education.
New Rate Class for Large Users
The SCC also created a new "GS-5" rate class for customers who demand 25 or more megawatts, effective January 2027. This ensures that the largest electricity consumers, primarily data centers, are charged at rates that reflect the true cost of serving them.
What This Means for Your Electric Bill
Let's be honest: you're going to pay more for electricity.
The question is how much and for how long.
For the typical residential customer in Virginia, the approved rates mean monthly increases of:
- $11.24 in 2026
- An additional $2.36 in 2027
That might not sound like much on its own. But when you stack it on top of already-rising costs, groceries, housing, gas, it adds up.
And here's the part that should worry you: these increases are likely just the beginning.
A JLARC report projected that data centers could almost double Virginia's energy demand within a decade. Unconstrained growth might see consumption double in 10 years, with data centers as the main driver.
That means more infrastructure spending. More grid upgrades. And ultimately, higher bills for everyone.
Actionable Power-Saving Tips
I know this all sounds pretty grim. But here's the good news: there are things you can do right now to reduce your electricity usage and soften the blow.
1. Master Your Lighting
- Turn off lights when you leave a room. It sounds obvious, but it's one of the easiest ways to save
- Use natural light during the day. Open those blinds!
- Switch to LED bulbs - they use up to 75% less energy than incandescent
2. Tame Your Electronics
- Shut down computers and laptops at the end of the day. Don't just put them to sleep
- Unplug chargers and appliances when not in use. They draw power even when nothing's plugged in
- Use smart power strips that automatically cut power to devices in standby mode
3. Rethink Heating and Cooling
- Adjust blinds to manage heat from sunlight, close them in summer, open them in winter
- Avoid space heaters - they can cost $150 to $300 per year in electricity costs
- Set your thermostat a few degrees higher in summer and lower in winter
- Use ceiling fans to circulate air more efficiently
4. Optimize Appliances
- Run full loads in washing machines and dishwashers
- Air-dry dishes instead of using the heat-dry setting
- Wash clothes in cold water - heating water accounts for about 90% of the energy your washer uses
- Clean your refrigerator coils - dirty coils make your fridge work harder
5. Consider Smart Home Upgrades
- Programmable thermostats can save you up to 10% annually on heating and cooling
- Energy-efficient appliances may cost more upfront but pay for themselves over time
- Home energy audits can identify where you're losing energy (and money)
6. Small Changes, Big Impact
- Take shorter showers
- Don't use automatic sprinklers during droughts
- Wash full loads of laundry and dishes
The county manager put it perfectly: "Each dollar we can save by conserving electricity is another dollar the county can reinvest into staff and the services we provide our residents".
The same logic applies to your household budget. Every dollar you save on electricity is a dollar you can put toward something that actually matters to you.
Let's step back for a moment and look at the bigger picture.
What's happening in Henrico County, Virginia is a warning sign for the rest of the country.
We're witnessing a collision between two powerful forces: the insatiable energy appetite of AI-driven data centers and the real-world limits of our aging electrical grid.
The data center boom has brought enormous economic benefits to Virginia, over $80 billion in state investments and thousands of jobs. But it's also creating serious strain on infrastructure, driving up costs for everyone, and forcing counties to ask teachers to turn off lights like it's the Great Recession all over again.
The good news is that policymakers are starting to respond. SB 253, the new data center electricity tax, and the GS-5 rate class all represent steps toward ensuring that the biggest users pay their fair share.
But here's the thing: policy changes take time. In the meantime, your electric bill is going up.
So here's my challenge to you: do something about it.
Turn off the lights when you leave a room. Shut down your computer at the end of the day. Unplug that phone charger. Adjust your blinds. Skip the space heater.
These aren't just small acts of conservation. They're acts of resistance against a system that's forcing everyday people to bear the cost of corporate energy consumption.
You can't control what data centers do. But you can control what you do.
And every kilowatt-hour you save is one less dollar out of your pocket and one less strain on a grid that's already stretched to its breaking point.