Northern Virginia’s Opportunity to Link District Energy, Residual Heat and Data Centers
NVRC agrees this is an opportunity to be a showcase of innovation.
Sustaining reductions of greenhouse gases and supplying efficient and reliable energy to Northern Virginia’s data centers is a complex economic and environmental process. Roughly 70% of all global Internet traffic passes through Northern Virginia’s approximately 350 data centers - the highest concentration of data centers in the world. Collectively, data centers contribute over a billion dollars of tax revenue to the budgets of Northern Virginia’s local governments.
Power demand in Virginia is expected to grow by about 85% over the next 15 years. By 2035 the industry in Virginia will require 11,000 megawatts – or nearly quadruple what it needed in 2022. [i] The accelerated applications of artificial intelligence are projected to further multiply power demands over the next decade.
Among various technical and policy factors capable of balancing data centers’ vital economic contributions and their rapidly escalating energy consumption is the movement of heat between sources and users via district energy systems. Generally speaking, district energy systems convey heat between suppliers and users (or buyers) between or among buildings.
In cities such as Paris, France and Frankfurt, Germany, data centers have out-sourced heat to purchasers of power such as public swimming pools, green houses and commercial buildings. These cities deploying district energy have combined integrated energy planning and zoning with the operation of public utilities to create markets for the sale, purchase and conveyance of heat.
The development of networks to convey heat and residual energy among data centers and utilities is technically and regulatorily possible in Northern Virginia. In 2012, the Northern Virginia Regional Commission (NVRC) commissioned a study about the feasibility of district energy systems under existing Virginia energy and commercial laws and regulations. The report concluded that the development of district energy systems is achievable in Virginia – especially for the movement of heat.
Equinix, a major operator of data centers around the world, including Northern Virginia, has called for “municipal planning agencies, energy utilities and heat network operators around the work to join the Equinix Heat Export program to unlock the value of the residual heat generated in its International Business Exchange (IBX) data centers.[ii]
NVRC agrees this is an opportunity to be a showcase of this innovation.
In 2024, NVRC took further steps to advance the possible development of district energy systems for conveying heat among the region’s data centers. NVRC created a map that characterizes the co-location of the region’s data centers and public buildings and some potential fundamental commercial exchanges of residual heat among suppliers and users. Data Center Proximity to Public Facilities Exhibit (arcgis.com).
NVRC looks forward to working with its regional partners and the data center industry to achieving a pilot project of district energy in the region.
[i] Olivio, Antonio. The Washington Post. April, 17, 2024. “Internet data centers are fueling drive to old power source: coal” - https://www.washingtonpost.com/business/interactive/2024/data-centers-internet-power-source-coal/
[ii] "Help Us Heat Our Neighbors" - Equinix Makes Data Center Heat Available to Warm Nearby Buildings and Swimming Pools, Equinix, June 5, 2024
About the Northern Virginia Regional Commission
NVRC is a consortium of thirteen local governments representing more than 2.5 million residents. While only 3% of Virginia's land mass, Northern Virginia has a GDP of $276 Billion which is 41.6% of the GDP of the Commonwealth of Virginia. Northern Virginia’s GDP is larger than 24 states and the District of Columbia and if a country would be the 48th largest economy in the world.