It costs $1 Billion to Transmit 1,000 MW
Aterio Research Team
Dominion estimates that regional transmission upgrades alone will require nearly $10 billion in investments for 10,000 megawatts (MW)
Breaking Down the Numbers
To put this in perspective:
- Incremental demand: 10,000 MW.
- Estimated cost: $10 billion.
- Cost per 1,000 MW: $1 billion.
Aterio datasets
See the data behind the story
The records behind this article live in the US Data Center Locations and Power Demand dataset.
This metric of $1 billion per 1,000 MW serves as a useful benchmark for understanding the financial implications of scaling transmission infrastructure. While Dominion's operations represent a specific geography and regulatory environment, the costs provide valuable insight for other utilities facing similar challenges.
Comparable Costs in Other Regions
In Ohio, for example, AEP Ohio has already connected 5,000 MW of incremental load. Experts anticipate that adding the next 5,000–6,000 MW of capacity will mirror Dominion's cost estimates, with investments likely approaching $10 billion for a similar load increase. This reinforces the broader trend: as demand for electricity grows, utilities must allocate substantial resources to ensure grid reliability and capacity.
$45 Billion
Aterio estimates that 45,000 MW of new data centers have been announced but are not yet under construction. Applying the $1 billion per 1,000 MW benchmark, the transmission infrastructure needed to support these data centers could require an astounding $45 billion in investment. This highlights the immense financial scale of supporting the ongoing growth of digital infrastructure and the need for careful planning in the energy sector.
