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Loudoun County Data Center Growth & Energy Constraints

Board of Supervisors Transportation and Land Use Committee - June 20, 2024

White Paper by Supervisor Mike Turner

Current Status Overview

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181 Data Centers in ~30 sq miles Loudoun County has 181 data centers concentrated in approximately 30 square miles of eastern Loudoun
65% of World's Internet Traffic In 2021, the county hosted 70% of the world's internet traffic (current estimates place that figure at 65%)
340% Power Growth (2018-2023) Power consumption has grown from 1 GW in 2018 to 3.4 GW in 2023 (340% increase)
13M → 32M Square Feet (2018-2023) Data center square footage increased from 13 million sq. ft. in 2018 to 32 million sq. ft. in 2023.
1 GW 2018 Power consumption was 1 GW in 2018.
3.4 GW 2023 Power consumption grew to 3.4 GW in 2023.
11.56 GW 2028 (Linear) Linear growth projection: 11.56 GW by 2028
20 GW 2028 (w/ AI) With AI demands: Could reach 20 GW by 2028

Key Timeline Events

2022
PJM informed Dominion Energy of underestimated power needs, creating a "constrained area" until 2027
March 2024
Board denied its first major data center application (later approved at reduced size)

Main Challenges Identified

  • The electrical grid is significantly oversubscribed
  • Planned transmission line construction will likely lag behind demand
  • Rising demand may slow retirement of fossil fuel plants
  • Increasing community resistance to overhead transmission lines and data centers near residential areas

AI Impact on Power Consumption

10-14 kW Traditional Rack Power Traditional data center racks consume 10-14 kW of power.
40-60 kW AI Rack Power AI-focused data center racks consume 40-60 kW of power.
6x Increase Factor AI applications increase rack power consumption from 10-14 kW to 40-60 kW (up to sixfold increase)

Proposed Solutions

  • Short-term: Increase transmission capacity through reconductoring and High Voltage Direct Current lines
  • Long-term: Require/incentivize onsite carbon-net-zero power production through microgrids
  • Create performance standards for new data centers
  • Establish a Green Business Development Zone with tax incentives for retrofitting existing facilities

Economic Impact

$895M Tax Revenue FY2025 Data centers provide approximately $895M in tax revenue for FY2025
$940M County Operating Budget County's operating budget is $940M
$0.04 Cost per $1 Tax Revenue Data centers cost the county $0.04 per $1 of tax revenue vs. $0.25 for normal businesses
$0.25 Normal Business Cost / $1 Tax Rev. Data centers cost the county $0.04 per $1 of tax revenue vs. $0.25 for normal businesses

Critical Decision Point

Loudoun County faces a choice between continuing the traditional power delivery model (resulting in proliferating overhead transmission lines) or transitioning to a new paradigm of onsite, sustainable power generation for data centers.