Henrico County, Virginia, has urged its employees, including school staff, to conserve electricity. This comes in response to an anticipated 25 percent rise in power costs for government and school facilities starting July 1. This increase is expected to add approximately $5 million to the county’s expenses in the next fiscal year, according to reports from 404 Media and the Henrico Citizen.
In a June 26 email, County Manager John Vithoulkas informed employees about the dramatic increase in electricity rates. He also highlighted the expectation of further hikes in upcoming years. Henrico’s status as a data center hub contributes to these rising costs. With 37 data centers already established and 17 more planned, the county’s eastern corridor hosts at least 16 facilities, with additional ones in progress.
County officials link the rate increase to escalating fuel costs. However, they have not drawn a direct connection to the presence of data centers. To address higher electric costs, Vithoulkas asked employees to adopt measures to conserve energy. Suggestions included turning off lights when leaving workspaces, shutting down computers at day’s end, adjusting blinds to control heat from sunlight, and unplugging unused appliances and chargers. Limiting or avoiding space heater use was also advised, as a standard heater might cost the county between $150 and $300 annually in electricity.
“Each dollar we save by conserving electricity allows us to reinvest in staff and services for residents,”Vithoulkas stated in his email.
The Henrico Citizen revealed that this rate hike impacts not only Henrico but also around 170 members of the Virginia Energy Purchasing Governmental Association. This group negotiates multi-year electricity contracts with Dominion Energy on behalf of government entities across the state, including several regional counties and cities.
Ben Sheppard, Henrico’s Communications Director, described Vithoulkas’s email as an example of both fiscal and environmental stewardship.
Virginia’s Expanding Data Center Influence
Virginia hosts the largest concentration of data centers worldwide. The National Association of Counties (NACo) noted that 35 percent of all known hyperscale data centers are in the state. A report from the Joint Legislative Audit and Review Commission (JLARC) in December 2024 suggested data center costs could increase residential electricity bills significantly by 2030 and 2040.
JLARC reported that the current utility rate structures inadequately accommodate sudden and large cost increases necessary for building new infrastructure to serve data centers.
Northern Virginia’s data centers consumed nearly 2 billion gallons of water in 2023, representing a 63 percent rise since 2019. Loudoun County alone used about 900 million gallons, heightening concerns over resource use. Known as the “Data Center Capital of the World,” Loudoun County has 53.3 million square feet of data centers, either operating or under development.
The Brookings Institution highlighted that data centers could increase residential electricity prices due to the demand for new generation, and improvements in transmission and distribution infrastructure. The think tank also noted a 42 percent rise in electricity costs since 2019 compared to a 29 percent increase in the overall Consumer Price Index.
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