The energy landscape in the United States is undergoing a seismic shift. As the race for Artificial Intelligence dominance intensifies, the demand for electricity is skyrocketing. Data centers, the physical backbone of the AI revolution, are voracious energy consumers, and major utility players are now looking to consolidate power to meet this unprecedented burden.
Recent reports suggest that energy giants NextEra Energy and Dominion Energy are exploring a potential mega-merger. The goal? To create a massive, vertically integrated utility powerhouse capable of fueling the massive data center clusters expanding across the country.
For Virginia, which sits at the epicenter of this global data center boom, this potential consolidation presents both a massive challenge and an unprecedented opportunity. If two of the nation’s largest utilities join forces to serve the AI economy, Virginia’s state government cannot afford to be a passive bystander.
To protect its citizens and harness the economic engine of AI, the Commonwealth should consider a bold, albeit radical, strategy.
1. Taking a 40% Stake: Ensuring Public Control
If a mega-utility is going to control the flow of power that runs the state’s economy, the public deserves a seat at the table. By acquiring a 40% equity stake in the Virginia-based assets of such a combined entity, the state would transition from a mere regulator to a primary stakeholder.
This move would give Virginia a direct voice in capital expenditure decisions, rate-setting strategies, and the transition to renewable energy. Rather than reacting to corporate decisions, the state would be a partner in them, ensuring that the infrastructure built to support AI also serves the long-term needs of Virginia residents and small businesses.
2. Eminent Domain: Opening Space for Growth
One of the most friction-filled aspects of the AI boom is land use. Data centers require massive footprints and proximity to existing high-voltage transmission lines. Currently, these companies often fight for farmland or residential buffer zones.
To prioritize state-level infrastructure goals, Virginia could strategically employ eminent domain powers to repurpose underutilized private land—specifically, large, exclusive private clubs and golf courses that sit on prime, grid-ready terrain. By reclaiming land that serves the few for infrastructure that serves the millions, Virginia could solve its data center site shortage while ensuring that development happens in areas with existing infrastructure, rather than encroaching on rural communities.
3. Hiring the Talent: Building a State-Owned Workforce
The complexity of managing a modernized, AI-driven grid requires elite-level human capital. Instead of leaving the grid’s management entirely to private-sector contractors, Virginia should aggressively hire and retain its own specialized energy corps.
By creating a public-service framework for energy engineers, data analysts, and grid technicians, the state could ensure that the expertise required to maintain our power infrastructure remains a public asset. This “Energy Department of Virginia” would provide the operational oversight to ensure that the AI revolution doesn’t jeopardize the grid’s reliability (the “lights out” scenario) while insulating the state from the volatility of private-sector layoffs or brain-drain.
Is This Too Radical?
Critics will argue that this approach smacks of state-mandated market interference. They are right. It is radical.
However, we are currently navigating a transition as significant as the dawn of the Industrial Revolution. We are building the “digital factories” of the 21st century. If the state chooses to let private utilities dictate how much power it provides, where it is placed, and who pays for it, it risks a future where the public bears the costs of the AI boom while private shareholders reap the entirety of the rewards.
Virginia has the chance to set a national precedent. By taking a stake, clearing the path for infrastructure, and owning the expertise, the Commonwealth can ensure that the AI future isn’t just profitable for the few—it’s sustainable for the many.