The enormous growth of data centers and the vast amounts of energy they consume is a global concern. Yet no place is more emblematic of this challenge than Northern Virginia. Its Data Center Alley is Ground Zero for questions about how to power the data requirements of the 21st century.About 70% of the worlds internet traffic flows through data centers in the region. Facilities accommodate firms such as Amazon Web Services (AWS), Google, Meta, Microsoft and Verizon. The region, particularly Northern Virginia and Loudoun County, has become an epicenter for high-speed connectivity and data storage.AI and data are becoming a bigger part of everyones lives, observes Suhas Subramanyam, an attorney and former member of the Virginia Senate who is an incoming representative for the states 10th US Congressional district. Were going to need to build more data centers but there are growing concerns about how the process takes place.As power demands escalate and new and larger facilities come online, one of the biggest questions is where all the needed energy will come from -- and how much carbon will it contain? Yet there are also worries about rate increases for consumers, environmental impacts and how these facilities are changing the character of neighborhoods.Related:Surging DemandThe need to dial up energy to data centers is indisputable. According to a September 2024 report from McKinsey & Company, power requirements for these facilities will triple by the end of the current decade. Today, data centers draw somewhere between 3% to 4% of total power but the figure will hit 12% by 2030, the consultancy noted. Overall electrical demand could swell by 27% by 2050, according to online data service Statistica.Power-hungry GPUs are increasingly the culprit. These chips -- critical for training and inferencing artificial intelligence models, including generative AI -- pull about 10 times the energy of CPUs. They are driving the need for larger and more power-intensive data centers, observes Gillian Crossan, risk advisory principal and global technology leader at Deloitte. This has implications for both power and water.Data centers arent the only culprit, however. Demand for electricity has continued to rise as heating and cooling systems have become electrified, electric vehicles (EVs) have steered into the mainstream, and manufacturing firms have adopted robots and other advanced digital systems, says Jeffrey Shields, senior manager for external communications at PJM Interconnection, a regional transmission organization that coordinates the movement of wholesale electricity in the eastern US.Related:In Northern Virginia, which benefits from its proximity to the government and business infrastructure of the nations capital, the strain of keeping up with rapidly growing power demand is mounting. A modern data center typically consumes as much energy as 80,000 households annually and pulls power at a rate of 10 to 50 times greater than the equivalent floor space of a commercial office building, according to the US Department of Energy.Current EventsIt isnt as simple as adding capacity to the grid. The enormous spike in electricity demand collides with Virginias commitment to move to sustainable power. The Virginia Clean Economy Act (VCEA) mandates 100% carbon-free electricity across the state by 2050. Dominion Energy, Virginias largest utility, is scrambling to meet these requirements by 2045. However, its 2024 Integrated Resource Plan raises questions about how it will achieve these goals (Dominion did not respond to multiple requests for an interview).To keep up with peak load demand, Dominion estimates that it will need to double its grid capacity over the next 10 to 20 years. The utility has proposed a broad energy portfolio that adds both conventional and sustainable energy sources. The planned upgrades -- including a series of natural gas plants -- will require billions of dollars and could lead to rate increases that could hit 50% by 2039. At present, bills are increasing at about 2.5% annually.Related:State regulators already added a $15 per month fuel surcharge in September 2024, though current utility rates are set until the end of 2025. After that, the average power bill of $202 per month could spike.Consumer groups are taking notice. There is going to be a reckoning, states Julie Bolthouse, director of land use for Piedmont Environmental Council, a 501(c)(3) organization. Its questionable whether the current energy model can continue to function effectively.In fact, Bolthouse believes there are more questions than answers. Dominion has signed contracts to supply energy without clear proof it can acquire the energy or build out the infrastructure, she says. In addition, the data centers are pushing land prices up and changing the character of region. They are encroaching on neighborhoods, parks and other infrastructure, Bolthouse adds.Power PlaysThe challenge of balancing power demands with sustainability goals isnt going to disappear anytime soon. PJM Interconnection, which oversees power transmissions for over 65 million people across 13 states and Washington, D.C., has recommended slowing the retirement of gas and coal facilities until other sources of energy can completely fill the gap.Of course, any delay in transitioning to low-carbon or no-carbon electricity could undermine reduction targets for Virginia as well as the companies operating data centers. Many of these firms have made commitments that are visible in ESG reports and other documents. Worse, it increases long-term risks related to climate change. On the other hand, PJM warns that retiring generation facilities before viable replacements are in place could result in a supply crunch.Amid all the wrangling over energy supply, companies operating data centers must also become more efficient, Deloittes Crossan says. This includes focusing on design and performance gains possible through the expanded use of immersion cooling, battery storage, on-site renewables and emerging technology such as small modular nuclear reactors, which deliver zero-carbon energy. At the same time, a move to collaborative land-use planning can help align development with community needs, Bolthouse says.Government officials and others must also reassess current policies, including tax incentives and subsidies, Subramanyam argues. We need to better understand the impact data centers have on communities. Its unclear if we can keep up with the energy demand because, in some cases, the concentration of data centers in one area is too high and we may not be able to protect rate payers, he says. No one disputes the need for these facilities, but we have to meet commitments to clean energy and the public.