Microsoft Challenges Virginia Prepayment Rule for Data Centers
Microsoft has appealed to the Virginia Supreme Court over a state regulatory order requiring data center operators to prepay transmission infrastructure costs. The company filed a notice of appeal on March 3, challenging a decision by the Virginia State Corporation Commission's July ruling.
The commission's order, which affects Dominion Energy customers, requires data center operators in Virginia to pay upfront for transmission grid construction costs. This move reflects concerns that if data center construction plans are canceled or scaled back, general consumers could be left footing the bill for power infrastructure already built.
Microsoft agrees with the principle that data centers should bear the costs they cause but disputes the method of prepayment. The company has previously warned that Virginia's approach could conflict with federal regulators' efforts to standardize how data center grid improvement costs are allocated.
The appeal marks a significant development in the ongoing debate over who should bear the massive grid investment costs associated with hyperscale data centers.