Data Center Coalition says data centers are already picking up more of the cost of transmission
Data Center CoalitionData center trade association, through Nicole Riley, its director of Virginia government affairs, in a statement reported by E&E News
Nicole Riley of the Data Center Coalition said the Virginia order would continue a trend of data centers picking up more of the cost of transmission infrastructure while residential customers' share declines.
“This order will continue and likely accelerate the recent trend of large users like data centers picking up more of the cost for transmission infrastructure while the share of costs borne by residential ratepayers continues to decline”
Reporting
Where this statement fits
Should Google have to pay the full cost of shared grid upgrades its data centers trigger?
On January 12, 2026, Google told Senators Elizabeth Warren, Chris Van Hollen and Richard Blumenthal that it pays for all the electricity its data centers use and that it, not local residents, pays for new grid infrastructure required for its growth. On January 22, Warren said that paying an electricity bill is different from fully covering the infrastructure upgrade costs of Google's data centers. An October 2026 report by the three senators said the companies, including Google, commit to paying for infrastructure that serves only their facilities but not the full cost of wider network upgrades. In June 2026, testimony filed for Google in a Virginia utility case recommended letting large customers voluntarily pay the full upfront cost of the substations that serve them. On July 31, Virginia regulators ordered Dominion Energy to develop a policy assigning data centers the cost of the transmission that connects them, and Appalachian Power says revenue from Google's new load in Botetourt County will cover $264 million in upgrades. The dispute is over whether Google should pay the full cost of the shared grid upgrades its data centers trigger, rather than leaving part of that cost with other customers.
Source and context
Reporting
About this source
E&E News report on the Virginia State Corporation Commission's order directing Dominion Energy to develop a tariff assigning more transmission costs to data centers.
Before the quotation
E&E News reported that the Data Center Coalition, which was not a party to the proceeding, said the industry is committed to paying the full cost of the energy it uses.
After the quotation
Riley added that the order reinforces the State Corporation Commission's role as the "proper entity to allocate costs in a fair manner."
How this statement is classified
The label describes this statement's response within the context above.
Why this label?
The case asks whether Google should pay the full cost of the shared grid upgrades its data centers trigger, rather than leaving part of that cost with other customers. Riley says the order will continue the trend of "large users like data centers picking up more of the cost for transmission infrastructure" while the share borne by residential ratepayers declines. That plays down the concern that other customers subsidize data centers' grid costs, so we labeled it Minimized. The closest competing label is Defended or excused; it loses because she does not argue against data centers paying more, and accepts the commission's role in allocating the costs.
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Appalachian Power says other customers are not expected to pay for the $264 million in grid upgrades for Google's Botetourt data center
Appalachian Power
“In this case, the project adds a large new customer load, which is expected to bring in enough additional revenue to cover the cost of the transmission line and substation upgrades. Because the added revenue is expected to offset those costs, other customers are not expected to pay more because of this work”Read statement
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The Dispute Index. "Data Center Coalition says data centers are already picking up more of the cost of transmission". First published: 2026-10-11. Last updated: 2026-10-11. https://disputeindex.com/events/5584-nicole-riley-of-the-data-center-coalition-said