Dominion Energy has filed a lawsuit against the Trump administration, challenging a federal decision to halt leases for major offshore wind projects. This abrupt pause affects five wind farms currently under construction, including Dominion’s own Coastal Virginia Offshore Wind project, a critical component for supplying electricity to Virginia’s burgeoning data center industry. The utility argues the stop-work order from the Bureau of Ocean Energy Management (BOEM) is unlawful and violates constitutional principles.
In its complaint, Dominion asserts that the “arbitrary and capricious” nature of the BOEM’s order infringes upon executive branch limitations. The company is seeking a federal court injunction to prevent the enforcement of this stop-work directive. Dominion emphasizes the urgent need for reliable electricity to meet the state’s rapidly increasing demand, particularly to power the data centers driving artificial intelligence advancements.
The lawsuit highlights the detrimental impact of “sudden and baseless withdrawal of regulatory approvals” on the development of essential large-scale energy infrastructure. Dominion states that Virginia requires every available electron to satisfy its doubling electricity needs, which are significantly driven by the proliferation of data centers. These facilities are crucial for maintaining competitiveness in the global AI race.
The surge in demand for new AI data centers, coupled with increased energy consumption from manufacturing and the electrification of transportation and homes, is placing immense strain on the nation’s power grids. Rising electricity costs have become a contentious issue in political landscapes and local communities impacted by data center expansions across the United States. Dominion warns that delays to projects like the Coastal Virginia Offshore Wind farm will inevitably lead to increased costs for consumers.
Secretary of the Interior Doug Burgum, named as a defendant, stated the 90-day pause on offshore wind leases is intended to address national security risks, purportedly identified in recent classified reports, and concerns regarding potential radar interference from turbines. However, national security experts question the basis for this sudden halt, noting no significant changes in the threat environment that would warrant such a drastic measure.
This is not the first time the Trump administration has sought to impede offshore wind development. Previous halts to the Revolution Wind farm off Rhode Island and the Empire Wind project off New York were eventually overturned by federal judges and BOEM. President Trump’s earlier directive to withdraw offshore wind leasing areas on the outer continental shelf was also struck down as “arbitrary and capricious.”
Dominion Energy maintains that its Coastal Virginia Offshore Wind farm had secured all necessary federal, state, and local approvals before breaking ground in 2024. The company has already invested $8.9 billion of the project’s total $11.2 billion cost. The wind farm, expected to begin generating power next year, is projected to produce 9.5 million megawatt-hours of carbon-free electricity annually, enough to power approximately 660,000 homes.
