DENVER, Oct 28 (Reuters) -

U.S. electric utility Dominion Energy ( D ), which operates

across the largest concentration of data centers in the world,

said it expects power demand to double over the next decade and

a half, driven by surging consumption from those facilities.

Data centers now account for 27% of the utility's sales in

the state of Virginia, CEO Robert Blue said on Tuesday at a

conference in Denver.

"We expect demand to double by 2039, driven in no small part

by the expansion of the data center industry," Blue said.

The Richmond, Virginia-based company said its top ten

all-time peaks in customer demand occurred in 2025.

Dominion works within the PJM Interconnection, the largest grid

operator in the country, covering 13 states and the District of

Columbia. Data center demand to power artificial intelligence is

driving explosive growth in PJM, pushing expectations for annual

growth to more than 6%, from 0.5% in 2021, during its summer

peak.

"All of this requires us to make some significant

adjustments," Blue said. His company is eying more than 33

gigawatts of new power generation over the next 20 years.

It will invest some $2.8 billion on its transmission system

in 2027, up from $2.1 billion last year. Its 2024 spending in

this area marked an 18% increase from the prior year.

"We need a way to get all of the new power to all of the new

customers, while ensuring costs are fairly allocated," Blue

said.

Growing demand from data centers has stoked concerns that

consumers will face higher prices for electricity.

Dominion said it has proposed a tariff for large-load

customers, or heavy energy users, that would require them to pay

minimum demand charges for various services. Under the proposal,

large-load customers would also be subject to 14-year contract

terms, as well as new deposit and credit requirements.