The internet requires data centers and data centers use a lot of energy. As part of our Cardinal Way project on promoting civil discussions, we invited two writers, from opposing perspectives, to address how Virginia should deal with these increased energy demands.
See the other story: “Charting a sustainable path for data center development in Virginia.“
On July 11, 2024, CNBC named Virginia America’s Top State for Business for a record
sixth time. This recognition was well-deserved and reflects a commitment by leaders
across Virginia to economic development fundamentals such as infrastructure and
education. As the Virginia Chamber of Commerce celebrates this honor, we remain
focused on the future and ensuring that Virginia remains America’s Top State for
Business. Especially important to Virginia’s future success are our energy policies and
investments. Strengthening our energy infrastructure and maximizing our energy
opportunities will allow Virginia to remain a top state for business for years to come.
The work of the Virginia Chamber is guided by Blueprint Virginia 2030, our strategic
plan to keep Virginia the best state for business. Blueprint Virginia recognizes that there
is no one-size-fits-all solution when it comes to businesses and their energy needs.
Rather, it affirms the need for a diverse energy portfolio incorporating reliable and
affordable sources. This “all-of-the-above” approach to energy enables businesses to
find the energy solutions that are right for them, fostering economic growth in all sectors
of our economy. A diverse mix of energy sources — including natural gas, nuclear and
renewables — also mitigates the risk of shortages and enhances reliability as it avoids
over-reliance on any single source.
The case for investing in energy infrastructure, of all kinds, is strong. Businesses and
residents increasingly depend on electronic and connected devices and systems for all
manner of operations and activities. These devices and systems have fostered
economic growth in all industries, but they are wholly dependent on a reliable supply of
energy. While data centers are often highlighted for their energy demands, we must
remember that without them our digital economy would stagnate and shrink. Economic
output across all industries is greater because of e-commerce, telemedicine and video
conferencing, none of which would be possible without data centers. Virginia is a leader
in global data center market, and we must find energy solutions to meet the growing
demand. These solutions need to be both environmentally safe and economically
sound.
In addition to powering data centers, energy remains a critical input for all sectors of our
economy. This is especially true for the industries targeted for growth in Virginia,
including advanced manufacturing, indoor agriculture, technology and
cybersecurity. We must also recognize the demand for energy caused by the
electrification of both buildings and transportation. Advancements in energy efficiency
have helped stabilize energy demand for many years, and because demand was
relatively stable, the capacity of existing infrastructure was not initially strained.
However, as our digital economy rapidly grows, we must invest more to supply the
energy this growth demands. Virginia will need to meet this challenge if we seek to be a
national and global economic leader in the decades to come.
Policymakers and stakeholders across the political spectrum are beginning to
acknowledge this reality. Although some advocate for focusing solely on renewable
energy and rapidly phasing out other sources to eliminate emissions, this approach fails
to acknowledge practical challenges. To be clear, there is an important place for
renewables like solar and wind in our energy portfolio, but we must remain cognizant of
their limitations, such as intermittency. Solar and wind are infamously dependent on the
weather, and although technologies like battery storage show promise, they cannot be
achieved at the required scale in the immediate future. Likewise, large-scale solar and
wind facilities require significant amounts of land, and the areas most suitable for these
facilities often lack the costly infrastructure, such as transmission lines and substations,
which are necessary to integrate the facilities into the larger grid.
A more sustainable path forward involves capitalizing on our existing energy
infrastructure, especially natural gas and nuclear. Nuclear energy offers continuous,
zero-emission power with minimal land use. Advanced nuclear technologies, such as
small modular reactors, promise greater efficiency, but development remains limited by
significant regulatory hurdles that are gradually coming down. Natural gas, on the other
hand, affords the flexibility and reliability necessary to complement renewable sources
and it remains necessary for businesses and industries that are not well suited for full-
scale electrification. Finally, existing natural gas infrastructure already in place across
Virginia helps minimize additional development costs. Ignoring the potential of our
existing energy infrastructure only serves to undermine economic stability and inhibit
future growth.
CNBC correctly identified infrastructure, including energy, as one of the most important
issues for businesses in 2024. Energy will continue to be a critical factor for economic
success in the coming years. To maintain Virginia’s position as the best state for
business, Virginia must implement a comprehensive, balanced and pragmatic energy
strategy. Leveraging our existing infrastructure assets and making smart, targeted
investments in energy innovations will allow the commonwealth to create a reliable,
affordable and sustainable energy network. Such a network will foster growth across
Virginia and in every economic sector, solidifying Virginia’s well-earned reputation as a
national and global leader. If we are successful in implementing this approach, Virginia
will remain America’s Top State for Business.
Barry DuVal is president and CEO of the Virginia Chamber of Commerce.
