Virginia’s Henrico County County Manager John Vithoulkas has issued a directive to county employees to reduce electricity consumption following a 25% rate increase across the state, which is home to the nation’s highest concentration of data centers.
In an email sent to all county staff on June 26, Vithoulkas outlined the dramatic fiscal impact of the rate hike, which will increase energy costs for government and school facilities by approximately $5 million in the upcoming fiscal year. The mandate applies to all members of the Virginia Energy Purchasing Governmental Association (VEPGA), of which Henrico County is part.
Vithoulkas emphasized the need for immediate action, instructing employees to adopt energy-saving practices such as turning off lights when leaving workstations, powering down computers, closing blinds during peak heat hours, and unplugging unused chargers. He drew parallels to similar cost-cutting measures implemented during the 2008 Great Recession, noting that departments are also pursuing 3% budget reductions for the next fiscal year.
Virginia’s Henrico County Manager John Vithoulkas. (Henrico County)
While Vithoulkas did not explicitly link the rate increases to data center expansion, Virginia’s Joint Legislative and Audit Review Commission (JLARC) has documented that the state’s rapid data center growth has significantly increased energy demand. Northern Virginia alone hosts over 25% of U.S. data centers and 13% of global facilities, with central regions like Richmond absorbing new developments as northern areas reach capacity.
The Virginia State Capitol is shown on July 12, 2023, in Richmond, Virginia. (Win McNamee/Getty Images / Getty Images)
“Data Center Alley” during high temperatures in Sterling, Virginia, on Monday, June 23, 2025. (Pete Kiehart/Bloomberg via Getty Images / Getty Images)