dominion energy, inc.

overview

Dominion Energy is one of the nation’s largest producers and transporters of energy, serving approximately 7 million customers across 13 states. The company operates the electric utility serving Virginia and parts of North Carolina, which has become the world’s largest data center market. Dominion’s Virginia service territory hosts over 250 data centers with approximately 4 GW of connected capacity as of 2024, with a pipeline of 40 GW in various stages of contracting.

business model

Regulated utility providing electricity and natural gas distribution. Operates under state commission oversight with rate-of-return regulation. Recovers infrastructure investments through rate base growth and regulated returns. Data center load growth drives substantial transmission and generation investments, with costs recovered from ratepayers through base rates and rider mechanisms.

data center profile

global footprint

us portfolio (from database)

projects by state

specialization

primary focus: hyperscale, cloud, wholesale

key differentiators:

• Serves world’s largest data center market (Northern Virginia)

• Existing transmission infrastructure near major internet exchange points

• Aggressive expansion plans with $50.1B capex (2025-2029)

• All-of-the-above energy strategy including nuclear, renewable, and gas

• Special data center rate classes under development

financial highlights

strategy

corporate strategy

Dominion is positioning itself as the essential utility partner for hyperscale data center growth in Northern Virginia. The company is pursuing aggressive infrastructure expansion to capture rate base growth from the unprecedented 40 GW demand pipeline. Strategy focuses on maintaining reliability while transitioning to cleaner energy sources, leveraging regulatory frameworks to recover investments, and establishing long-term contractual relationships with major tech companies. The utility aims to balance stakeholder interests including shareholders (through rate base growth), customers (through new rate classes), and regulators (through reliability and environmental commitments).

growth strategy

Data center load growth is the primary driver of Dominion’s investment and expansion strategy. The company has increased its 5-year capital plan by 16% to $50.1 billion (2025-2029), with over$41 billion allocated to Virginia utility operations. This supports projected 9.4% annual rate base growth through 2029. Strategy includes: (1) Building extensive transmission infrastructure including 500kV loops in Eastern Loudoun; (2) Developing 33 GW of new generation and storage over 15 years; (3) Creating specialized rate structures for high-load customers; (4) Accelerating interconnection processes; (5) Partnering with hyperscalers on long-term power purchase agreements; (6) Pursuing advanced nuclear (SMRs) and renewable energy to meet customer sustainability demands.

power strategy

All-of-the-above strategy combining nuclear, renewable, natural gas, and storage to meet doubling electricity demand by 2039. Dominion forecasts 5.5% annual demand growth for next decade, driven primarily by data centers. Approach emphasizes reliability and firm capacity while meeting net-zero commitments and customer renewable energy requirements.

renewable commitment: Dominion plans to reach 40% renewables by 2030 and 75% by 2035. Major renewable initiatives include: 2.6 GW offshore wind (2024-2026) with 200+ turbines 27 miles off Virginia Beach; 15.9 GW solar expansion over 15 years; wind and solar to quadruple in 15-year integrated resource plan. Approximately 80% of planned infrastructure supports carbon-free generation. Company targets net zero carbon dioxide and methane emissions by 2050 across Scopes 1, 2, and 3. Since 2005, has reduced carbon emissions by 57% and methane emissions by 25% since 2010. Plans to retire 4+ GW of coal and oil generation between 2018-2025.

nuclear partnerships:

• Amazon - Partnership announced October 2024 for Small Modular Reactor development at North Anna

• Leading SMR technology vendors - RFP issued July 2024 for SMR feasibility at North Anna

• Potential partnerships with other tech companies for SMR development (discussions ongoing)

major commitments

partnerships

power providers

technology partners

Multiple SMR vendors (RFP process) (Nuclear - Small Modular Reactors) : RFP issued July 2024 to leading SMR technology companies for feasibility evaluation at North Anna site

competitive position

Dominant incumbent utility in world’s largest data center market (Northern Virginia). Monopoly service provider with regulatory oversight. Controls access to transmission and distribution infrastructure essential for data center operations. Significant competitive advantage from existing infrastructure and regulatory relationships.

strengths

• Monopoly utility serving world’s largest data center market

• 40 GW contracted demand pipeline - unprecedented scale

• Strong regulatory relationships with Virginia SCC

• Existing transmission infrastructure in strategic locations

• Partnerships with all major hyperscalers (Amazon, Microsoft, Google, Meta)

opportunities

• 40 GW demand pipeline represents transformational growth opportunity

• Rate base growth averaging 9.4% annually through 2029

• AI workload expansion driving further data center demand

• SMR development partnerships with tech companies creating new revenue streams

• Special data center rate classes can optimize cost recovery and customer commitments

threats

• Regulatory risk: Virginia SCC scrutiny of data center cost allocation and rate design

• Political risk: Growing legislative concern about ratepayer impacts and utility disconnections

• Customer concentration risk: Dependent on small number of hyperscale customers

• Project risk: Data center projects may not materialize as forecasted (demand volatility)

• Environmental opposition: Clean energy advocates concerned about data center carbon impacts

projects

Showing top 20 of 278 projects

sources

• Dominion Energy nearly doubles data center capacity under contract to 40GW

• Data Center Dynamics (2024-12-20)

• Dominion: Virginia’s Data Center Cluster Could Double in Size

• Data Center Frontier (2024)

• Dominion, Duke Beef Up Budgets as Data Center Demand Booms

• T&D World (2024)

• Will special rate classes protect Va. residents from the costs of serving data centers?

• Virginia Mercury (2025-04-25)

• Dominion proposes higher utility rates, new rate class for data centers

• Virginia Mercury (2025-09-03)

• Dominion Energy announces 2024 financial results

• Dominion Energy (2025-02-11)

• Dominion Energy raises five-year capex plan to meet data centers’ power demand

• MarketScreener (2025-02-12)

• Amazon to partner with Dominion Energy on nuclear power for data centers

• VPM (2024-10-17)

• In the world’s data center hotbed, how close is too close, and who should pay?

• VPM (2025-05-07)

• In the World’s Data Center Hotbed, How Close Is Too Close, and Who Should Pay?

• Inside Climate News (2025-05-01)