Dominion Energy, an offshore wind developer and utility serving Virginia’s “data center alley,” filed a lawsuit this week against the Trump administration over its decision to halt federal leases for large offshore wind projects. The move brings a halt to five wind farms already under construction, including Dominion’s coastal Virginia offshore wind project.
Complaint Dominion alleges in the lawsuit filed Tuesday that the stoppage order issued Monday by the Bureau of Ocean Energy Management (BOEM) is unlawful, “arbitrary and capricious” and “violates constitutional principles that limit actions by the executive branch.” Dominion wants a federal court to stop BOEM from enforcing the stop-work order.
“Virginia needs every electron we can get as our electricity demand doubles.”
The lawsuit also argues that the “abrupt and unfounded withdrawal of regulatory approval by government officials” threatens the ability of developers to build the large-scale infrastructure projects needed to meet growing energy demand in the US.
Dominion said on December 22, “Virginia needs every electron we can get as our demand for electricity doubles. These electrons will power the data centers that will win the AI race.” Press releaseAccording to the company, Virginia is home to the largest concentration of data centers in the world,
The rush to build new data centers for AI, along with rising energy demand from manufacturing and the electrification of homes and vehicles, has put additional pressure on an already strained power grid. As a result, rising electricity prices have become a flashpoint in Virginia elections and in communities near data center projects across the US. Dominion has warned that construction delays on a coastal Virginia offshore wind farm could drive up project costs that customers ultimately have to pay.
Interior Secretary Doug Burgum, who is named as one of the defendants in the lawsuit, said the 90-day pause on offshore wind leases would allow the agency to address national security risks that were clearly identified in recently classified reports. US Department of the Interior also cited Concerns about turbines causing radar interference.
“I wonder what’s changed?” National security expert and former commander of the USS Cole Kirk Lippold told the Associated Press“To my knowledge, nothing has changed in the threat environment that would lead us to halt any offshore wind programs,”
The Trump administration previously halted construction of the Revolution Wind Farm off the coast of Rhode Island and the Empire Wind project off the coast of New York before a federal judge and BOEM agreed to do so. stop work Order. Those projects are now done Suspended againPresident Donald Trump issued a presidential memorandum Upon stepping into office in January areas on the outer continental shelf were withdrawn from offshore wind leases, a Federal judge rejected To happen at the beginning of this month”arbitrary and capricious,
Dominion Energy says it has already received all federal, state and local approvals needed for the Coastal Virginia offshore wind farm, which is slated to open in 2024. The company has spent $8.9 billion so far on the $11.2 billion project, which was expected to begin producing power next year. Fully up and running, the offshore wind farm has the potential to produce 9.5 million megawatt-hours of carbon pollution-free electricity per year, which can be used by approximately 660,000 homes in the US.
