Dominion Energy’s bold move to construct a new 1-GW natural gas-fired power plant in Virginia is a clear response to the surging demand from data centers, particularly in the state’s tech hub, Loudoun County, known as “Data Center Alley.” The proposed Chesterfield Energy Reliability Center (CERC), adjacent to the existing Chesterfield Power Station, is more than just a new power plant; it’s a strategic pivot in the energy sector, driven by the insatiable appetite of data centers for reliable and massive power supplies. Dominion’s request to Virginia’s State Corporation Commission for a Certificate of Public Convenience and Necessity is a significant step, as it would enable the company to secure necessary air quality and water permits, paving the way for construction to begin as early as next year, with commercial operation slated for 2029.
The decision to locate the new plant near Units 7 and 8 of the existing Chesterfield Power Station, rather than the originally planned James River Industrial Center, underscores Dominion’s commitment to leveraging existing infrastructure. This move could streamline the permitting process and reduce costs, while also addressing some of the environmental concerns raised by groups like the Southern Environmental Law Center. Rachel James, an attorney with the center, has voiced opposition, stating, “Adding more pollution to an already overburdened community is unacceptable, especially when there are clean energy alternatives that can meet the energy and capacity need the gas plant is meant to serve.” This opposition highlights the ongoing debate between the need for reliable power and the push for cleaner energy solutions.
The new plant, equipped with four 250-MW simple-cycle gas turbines, is designed to be versatile, capable of combusting natural gas, a blend of up to 10% hydrogen, and low-sulfur #2 distillate fuel oil. This flexibility is a nod to the evolving energy landscape, where hydrogen and other low-carbon fuels are gaining traction. The inclusion of six 3,500-kW black start generators firing ultra-low-sulfur diesel further underscores the plant’s reliability, ensuring it can restart the grid in case of a blackout.
The implications of this development are far-reaching. The data center industry’s voracious power demand is reshaping the energy sector, prompting utilities to reconsider their generation portfolios. Dominion’s plans to expand capacity at other existing gas-fired facilities, such as the 645-MW Possum Point Power Station, and the Institute for Energy Economics and Financial Analysis’ report on the projected 20 GW of new natural gas-fired generation capacity in the Southeastern U.S. over the next 15 years, illustrate this trend. The data center industry’s influence is so profound that it is even prompting some utilities to delay the retirement of coal-fired power stations, highlighting the tension between the need for reliable power and the push for cleaner energy sources.
Dominion’s move is also a call to action for the renewable energy sector. As data centers continue to proliferate, the demand for clean, reliable power will only increase. This presents an opportunity for renewable energy developers to innovate and scale up their technologies to meet this growing demand. The recent announcement by Commonwealth Fusion Systems to build a 400-MW fusion facility at the James River Industrial Park is a testament to this potential. The fusion facility, if successful, could revolutionize the energy sector, providing a virtually limitless source of clean power.
The Chesterfield Energy Reliability Center is more than just a new power plant; it’s a bellwether for the future of the energy sector. As data centers continue to drive power demand, utilities and policymakers will need to grapple with the challenges and opportunities presented by this new reality. Dominion’s move is a bold step in this direction, but it’s just the beginning of a much larger conversation about how to power the digital age sustainably.
