Virginia Approves Controversial Gas Plant for AI Power Increases

Virginia Approves Gas Plant Opposed by Environmental Groups

Published December 5, 2025

Virginia’s State Corporation Commission approved a controversial $1.47 billion natural gas plant owned by Dominion Energy, despite opposition by environmental groups to accommodate growing energy demands.

The Chesterfield Energy Reliability Center, or CERC, is the name of the new 944-megawatt natural gas peaker plant in Virginia’s Chesterfield County being built to accommodate the increasing energy needs of the community forecasted for the next fifteen years. Dominion Energy filed for SCC approval in March 2025 and the plant is projected to be operational by June 1, 2029.

Many environmental and advocacy groups including the Sierra Club, Appalachian Voices, the NAACP, Advanced Energy United and neighboring residents protested against the plant’s establishment for concerns of rising costs to residential power customers and potential environmental impacts.

Dominion pushed back, arguing that it needed to increase energy supply under the mounting pressure of demand from artificial intelligence and internet use in recent years.

Under the Virginia Clean Economy Act, Dominion is required to produce almost all power via renewable sources by 2045.

Ultimately, the commission ruled in Dominion’s favor, noting that data centers used by artificial intelligence have necessitated the increase in power generation.

This comes just a week after Dominion announced its customers will face an estimated $11.24 monthly rate increase in 2026, amidst broader inflation. According to the order issued by the SCC, residents expressed concern about the significant price hike. (RELATED: As Democrats Take Over The Legislature, Here’s What They’ve Got Planned)

Most of the data centers in the U.S. sit on the East Coast – Pennsylvania, Virginia$EQT is the largest natural-gas producer in the country, and its footprint is right in Pennsylvania, sitting on top of the exact region where hyperscaler's are expanding power demand.

Solar and… https://t.co/7NyT2KrGxn pic.twitter.com/dMELMp5jio
— Venu (@Venu_7_) December 3, 2025

“There was considerable concern among the public, demonstrated through both written comments and public witness testimony, regarding the potential for an increase in rates, especially within the residential rate class,” reads the report.

Rate increases are also planned for 2027 with the average residential customer facing additional increases of $2.36 per month. At the same time, the SCC announced it will create a new rate class for high-intensity energy users, such as data centers used by artificial intelligence.

Starting January 1, 2027, high-energy consumers with 25 megawatts or more will be required to pay a minimum of 85% of contracted distribution and transmission demand, as well as 60% of generation demand. (RELATED: Virginia to Roll Out Recreational Cannabis Market Under Spanberger)

Many residential consumers feel they may end up shouldering the financial burden for the massive data centers through the incremental price increases. Additionally, advocacy groups expressed concerns that the community is forgoing clean environment goals in the race to keep up with technological energy priorities.

“Dominion’s long-term plan should serve Virginia customers — not stand in the way of progress,” Shawn Kelly, Virginia-based regulatory director at industry group Advanced Energy United, said in a statement. “The [plan] needs to reflect the law, plan for a reliable clean energy future, and make use of proven tools like energy efficiency and storage to meet customer needs affordably.”