Overview
- Rapid growth in AI demand has outpaced the time needed to add generation and transmission, so utilities are offering provisional or interruptible connections instead of guaranteed, round‑the‑clock power.
- State actions including moratoria, audits and a new data‑center tax in Virginia are shifting costs onto developers as regulators seek to protect utility customers from higher bills and strained networks.
- Dozens of planned projects worth tens to potentially hundreds of billions of dollars have been delayed or canceled as companies face long interconnection waits and local opposition.
- Both parties have made data centers a midterm campaign issue, with more than $45 million in political ads criticizing tax breaks, higher rates and lack of local benefits, increasing pressure on governors and legislators.
- The path forward will shape emissions and local lives: long‑term power deals could finance new renewables and transmission, while provisional hookups or on‑site gas backup risk more local pollution and higher household energy costs.