Balico LLC Plans Major Natural Gas Power Plant and Data Center in Virginia

In a move that could reshape Virginia’s energy landscape, Balico LLC is stepping up to the plate with ambitious plans for a natural gas-fired power plant and a sprawling data center campus on 2,200 acres in Pittsylvania County. If the local planning authorities give the green light, this facility could crank out an impressive 3,500 MW of generation capacity—the largest of its kind in the state. Balico, based in Herndon, is seeking to rezone land currently designated for residential development to industrial use, indicating a significant shift in local land use priorities.

The plan is not just about the power plant. It envisions a comprehensive campus that integrates data centers with private power generation. This dual approach is becoming increasingly popular as data centers require massive amounts of energy to operate, and having a dedicated power source can offer both reliability and cost savings. The initial phase of the project features 15 Mitsubishi FT8 Mobilepac mobile gas turbines, each capable of generating 30 MW. That’s a hefty start, but it’s only the tip of the iceberg. The second phase aims to introduce a permanent gas-fired power plant utilizing Mitsubishi M501JAC gas turbines, potentially cranking out between 330 MW to 453 MW each, depending on configuration.

The site plan is detailed, showing more than 70 buildings dedicated to the data center complex, alongside essential infrastructure like a switchyard, electrical substation, and wastewater treatment facility. It’s clear that Balico is thinking big and strategically. The proximity to the Mountain Valley Pipeline, which transports natural gas from the Marcellus and Utica shale plays, adds another layer of feasibility to the project. The pipeline’s easements could facilitate the necessary fuel supply, easing potential logistical headaches.

However, this isn’t Balico’s first rodeo. The company previously attempted to launch the 1.6-GW Chickahominy power plant but faced significant pushback, leading to its abandonment in 2022. Opposition from various groups, many aligned with renewable energy interests, raised red flags that ultimately derailed that initiative. The Chickahominy project serves as a cautionary tale for Balico, highlighting the need for robust community engagement and transparent dialogue as they navigate the approval process for this new endeavor.

Local officials are set to review the application on November 7, and public meetings are slated for October 28 and 29. These gatherings will be crucial for gauging community sentiment and addressing concerns that may arise. Given the historical context of failed projects in the area, Balico would do well to learn from past missteps and foster an inclusive conversation around its plans.

As the energy sector grapples with the dual pressures of meeting escalating demand and transitioning to cleaner sources, Balico’s project could serve as a litmus test for the future of natural gas in Virginia. Will it be seen as a necessary bridge fuel, or will it face the same hurdles as its predecessors? The outcome of this project could not only influence local energy dynamics but also ripple through broader discussions on energy policy, sustainability, and community engagement in the era of climate change.

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