Henrico County, Virginia, has asked its employees—including teachers—to reduce electricity use as rates rise by 25% starting July 1. The increase will add an estimated $5 million in expenses for government and school buildings in the next fiscal year, according to County Manager John Vithoulkas. The county anticipates further rate hikes in the future.
Immediate Action & Core Facts
Henrico County, home to 37 operating data centers with plans for 17 more, has instructed employees to turn off lights when leaving workspaces, shut down computers at the end of the day, adjust blinds to manage sunlight, unplug unused appliances, and avoid using space heaters. Vithoulkas noted that a single space heater can cost the county up to $300 annually in electricity.
Deeper Dive & Context
The rate increase applies not only to Henrico but also to about 170 members of the Virginia Energy Purchasing Governmental Association, which negotiates multi-year electricity contracts with Dominion Energy. County officials have attributed the rise in costs to increasing fuel prices but have not directly linked it to the presence of data centers.
Data Centers and Energy Demand
Henrico’s eastern corridor is a growing hub for data centers, with at least 16 facilities already in operation and more planned. While the county has not explicitly tied the rate hike to data centers, the concentration of these energy-intensive facilities has raised questions about their impact on local electricity costs.
Conservation Efforts
Vithoulkas emphasized that conserving electricity would allow the county to reinvest savings into staff and services. The request for employees to adopt energy-saving practices is part of a broader effort to mitigate the financial impact of rising power costs.
Long-Term Implications
The county expects additional rate increases in the coming years, suggesting that energy conservation may become a recurring priority. The situation highlights the tension between economic development—such as attracting data centers—and the strain on local infrastructure and budgets.