The industry can’t agree on what AI demand risk is worth

This story is about who pays when massive data centers built for AI don't use as much power as expected — and it points to a cost that could eventually show up on household electric bills. Amazon recently booked a $551-million paper gain tied to long-term power contracts for data centers, some running 20 years, because it may end up paying utilities without ever using that electricity. Amazon's own filings admit the company might not need all the power it has committed to buy.

Utilities are hedging against that same uncertainty. In Virginia, Dominion Energy won approval for a new rule, starting January 2027, that requires large data center customers to post $1.5 million in collateral for every megawatt of power they reserve, in case they scale back. Regulators also let Dominion earn a 9.8% return on equity (the profit rate it's allowed to charge) partly to cover this risk. Costs like this often get folded into the rates all customers pay, though the article doesn't spell out how much of it lands on households.

Meanwhile, some Virginia counties hosting these data centers are pushing back directly. Loudoun County, home to the world's largest cluster of data centers, is preparing a possible moratorium on new data center approvals, to be decided in September, and just rejected a large proposed campus. Chesapeake has already paused new applications, Suffolk is rewriting its rules, and Front Royal is drafting a full ban. These moves could reshape how much data center growth happens near you, especially if you live in a fast-growing area.