37 Data Centers Strain Schools' Power Budgets
TL;DR: Henrico County's 37 data centers are driving a 25% electricity rate increase, prompting county officials to ask school staff and employees to dim lights and conserve power starting July 1, 2026.
Quick facts
- Who: Henrico County government, schools, data center operators
- What: County manager requests electricity conservation; 25% rate increase for government and school facilities
- When: Conservation notice sent June 26, 2026; rate increase effective July 1, 2026
- Where: Henrico County, Virginia (near Richmond)
The story
Henrico County, home to 350,000 residents just outside Richmond, hosts 37 operating data centers with 17 more planned. On June 26, County Manager John Vithoulkas sent an email to thousands of county employees asking for help conserving electricity, citing a dramatic 25% rate increase in the county's annual power bill beginning July 1. The increase will cost an estimated $5 million next fiscal year and applies to all county government and school facilities. The directive asked workers and teachers to turn off classroom lights, shut down computers at day's end, adjust blinds to minimize heat gain, unplug unused chargers and appliances, and avoid space heaters.
The rate jump reflects Virginia's role as a hub for hyperscale data centers serving artificial intelligence and cloud computing operations. The state now hosts over 400 data centers, with concentrated clusters in Northern Virginia and the Richmond metro area. Dominion Energy, the region's primary utility, has filed rate increase requests with the State Corporation Commission reflecting soaring electricity demand from data center operators, with proposed increases adding roughly $21 per month to residential customer bills starting in 2027. The company is also seeking approval to build new high-voltage transmission lines and generation capacity to meet data center power demands.
In May, Henrico residents had raised concerns about data center expansion during a community meeting, citing worries about water usage, noise, and rising electricity costs affecting their personal bills. Some data center projects, including conversion of Civil War battlefield land, have sparked local controversy. Meanwhile, neighboring Chesterfield County faces similar pressures, with multiple Google data center projects underway and Virginia's state legislative budget proposal expected to generate $600 million annually in data center tax revenue statewide.
For Henrico schools, the conservation measures signal a genuine tension between economic development benefits from data centers and the direct cost pressures on public services. Educators say classroom lighting reductions make instructional environments less comfortable and efficient, while the county must weigh immediate budget relief against academic needs.
Key players
- John Vithoulkas: Henrico County Manager who issued conservation directive
- Henrico County Schools: Public school system affected by rising electricity costs
- Dominion Energy: Utility company implementing rate increases
Key dates
- 2026-06-26: Henrico County Manager issues conservation directive to employees and school staff
- 2026-07-01: 25% electricity rate increase takes effect for Henrico County government and school facilities
- 2027: Dominion Energy rate increases proposed to take effect for residential customers (approximately $21 monthly increase)
The case for
Data centers represent transformative economic development: Virginia's data center industry contributes 74,000 jobs, $5.5 billion in annual labor income, and $9.1 billion in state GDP. Counties hosting major facilities gain hundreds of millions in annual tax revenue (Loudoun County exceeds $1 billion yearly), enabling them to cut property taxes, build new schools, and raise teacher pay. This investment is not available through traditional economic development paths. For Henrico, the data center presence supports economic diversification and long-term revenue stability that benefits residents across sectors.
The case against
The immediate cost burden falls hardest on public services and working families least able to absorb rate shocks. Schools must compromise teaching environments (classroom lighting affects learning conditions) while managing tight budgets. Residential electricity costs rise across the county for all customers, disproportionately affecting households already struggling with utility bills. Infrastructure built to serve data centers (new substations, transmission lines, gas plants) requires billions in investment often passed to consumers. The benefits accrue to corporate operators and wealthy jurisdictions; costs are borne by everyday residents and already-stretched public schools.
Why it matters: Henrico's situation illustrates a critical test facing Virginia and the nation: as artificial intelligence and cloud computing reshape the power grid, can communities harness the economic windfall without sacrificing service quality for schools, hospitals, and residents on fixed incomes? The answer will shape whether the data center boom deepens regional inequality or enables broadly shared prosperity.
Places
Development timeline
- 2025Google announces $3 billion data center investment in Virginia: Major capital commitment accelerates data center growth and electricity demand across Richmond metro area [[source]](https://www.wric.com/news/local-news/chesterfield-county/google-announces-new-data-center-in-chesterfield-along-with-9-billion-investment-in-virginia/)
- 2026-05Henrico residents voice concerns about data center expansion: Community meeting raises questions about water use, noise, and impact on utility bills [[source]](https://www.wtvr.com/news/local-news/henrico-county/residents-speak-out-on-data-centers-june-24-2026)
- 2026-06-26Henrico County issues emergency electricity conservation directive: County Manager Vithoulkas emails employees and school staff requesting power conservation measures ahead of July 1 rate increase [[source]](https://www.henricocitizen.com/henricos-electric-bill-is-going-up-by-5m-the-county-is-asking-employees-to-help/)
- 2026-07-01Rate increase takes effect across Virginia Energy Purchasing Governmental Association members: 25% increase in electricity rates impacts Henrico, Chesterfield, and other member jurisdictions' government and school facilities [[source]](https://www.404media.co/henrico-virginia-datacenter-energy-cost-email/)
Related links
- Henrico County Government - Energy and Sustainability
- Virginia State Corporation Commission - Rate Cases
- Dominion Energy Rate Information
Read the original at Google News: Dominion / VA Utilities →
Sources
- County With 37 Data Centers Asks Schools to 'Conserve Electricity'
- Henrico's electric bill is going up by $5M; the county is asking employees to help
- Teachers Asked to 'Turn Off Lights' in County Packed With Data Centers
- They Welcomed 37 Data Centers to Town. Now Their Schools Have to Dim the Lights to Cut Energy Costs
- Virginia county asks all employees, including schools, to conserve power due to AI-driven electricity price hikes
- Google advances Chesterfield data center amid concern from residents, researchers
- Economic development officials: Protect Virginia's reputation and opportunity for responsible data center investment