The rapid expansion of data centers has led to a significant energy challenge, particularly in Virginia, where electricity demand is projected to triple by 2040. The increasing energy needs from data centers, alongside AI and high-density computing, have outstripped grid capabilities, prompting concerns from grid operators like PJM Interconnection. To address this, developers are looking toward solar energy as a viable solution due to its shorter deployment timeline compared to other energy sources. Solar can often be operational within 18 to 24 months, but regulatory complexities and local opposition pose challenges. Other alternatives, such as natural gas and nuclear energy, have longer timelines, making them less feasible for immediate needs.
For years, data center developers could build with confidence that the grid — and the utilities behind it — would keep up. That’s no longer the case. In May, the PJM Interconnection, which manages the grid serving Virginia and much of the Mid-Atlantic, issued a warning for the first time in its history: Under extreme summer conditions, it may not have enough power to go around. At a Federal Energy Regulatory Commission technical conference the following month, PJM’s independent market monitor, Joseph Bowring, was blunt: “Data centers could overwhelm the grids if they chose to.” The solution suggested by Bowring was to require data center owners to procure new generation for their projects.
Virginia already imports more electricity than any other state (50 million MWh in 2023), according to the U.S. Energy Information Administration. Demand is surging, driven mostly by data centers and the explosive energy needs of AI, crypto, and high-density computing. A 2024 report from the General Assembly’s Joint Legislative Audit and Review Commission projected that Virginia’s electric demand could triple by 2040 if data center growth continues on its current path. If there’s one emerging consensus, it’s this: The grid can’t grow fast enough to keep up. The only way to meet this demand reliably is for large power users, especially data centers, to build their own. But that raises another critical question: What kind of power can actually come online in time?
Among all the available options, solar remains the quickest to deploy. Especially in Virginia, where the state’s Permit By Rule process streamlines approvals for projects under 150 MW, developers can often move from land use application to commercial operation in 18 to 24 months. Behind-the-meter solar installations, designed to power data centers directly rather than feed the grid, can be constructed in just a few months once permits are in hand. Battery storage adds flexibility and resilience, especially when designed to smooth out demand or provide backup during peak hours. And because these systems often avoid long interconnection queues, the timeline from development to operation is shorter than nearly any other power source. But solar isn’t without obstacles in Virginia. In 2024, for the first time, Virginia counties rejected more megawatts of solar than they approved, according to data from the University of Virginia Weldon Cooper Center. This land use trend reflects a real and growing challenge: in many rural communities, solar is seen less as a clean-energy solution and more as an industrial eyesore. Still, when weighed against the timeframes for other technologies, solar remains in a category of its own. With thoughtful siting, community engagement, and favorable policy, developers can bring solar projects online within 18 to 24 months, compared to 3 to 15 years for most other major generation sources. Particularly when the average hyperscale data center requires between 100 and 150 MW of dedicated power, only solar is likely to deliver on schedule.
However, even where solar is developed behind the meter and co-located with a data center, developers shouldn’t assume a regulatory free ride. Co-location may offer reliability and transmission-cost benefits, but it also introduces legal and regulatory complexity. Interconnection processes for both the generation source and the data center load must often be coordinated, and independent grid access is still
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