A developer focused on offshore wind energy claims that the Trump administration is restricting future energy supply as AI consumes more electricity.
A developer focused on offshore wind energy claims that the Trump administration is restricting future energy supply as AI consumes more electricity.
Dominion Energy, a developer of offshore wind projects and a utility provider for Virginia’s “data center corridor,” has initiated legal action against the Trump administration this week concerning its decision to suspend federal leasing for large-scale offshore wind initiatives. This development abruptly halts five wind farms that are currently under construction, including Dominion’s Coastal Virginia Offshore Wind project.
The lawsuit lodged by Dominion on Tuesday claims that a halt order issued on Monday by the Bureau of Ocean Energy Management (BOEM) is unlawful, “arbitrary and capricious,” and “violates constitutional principles that limit Executive Branch actions.” Dominion is seeking a federal court’s intervention to block BOEM from enforcing this halt order.
The lawsuit further contends that the “unexpected and unfounded withdrawal of regulatory approvals by governmental officials” jeopardizes the capacity of developers to construct essential large-scale infrastructure necessary to accommodate increasing energy demands in the U.S.
“Virginia requires every electron available as our electricity demand doubles. These electrons will energize the data centers that will excel in the AI competition,” Dominion stated in a press release on December 22 released to the media. According to the company, Virginia hosts the highest density of data centers globally.
The surge in building new data centers for AI—coupled with the increasing energy requirements from manufacturing and the electrification of residences and vehicles—has placed additional strain on power grids that are already under pressure. Escalating electricity rates have emerged as a point of contention in Virginia elections, and within communities adjacent to data center developments throughout the U.S.. Delays in the construction of the Coastal Virginia Offshore Wind project are expected to raise costs that ultimately burden customers, according to Dominion.
Doug Burgum, the Secretary of the Interior named as one of the defendants in the lawsuit, stated that the 90-day suspension of offshore wind leases will enable the agency to evaluate national security threats, which have apparently been identified in recent classified reports. The U.S. Department of the Interior also raised concerns about radar interference caused by turbines.
“I want clarity on what has changed?” national security specialist and former USS Cole Commander Kirk Lippold remarked to the Associated Press. “As far as I know, there has been no change in the threat landscape that would necessitate halting any offshore wind initiatives.”
Previously, the Trump administration had frozen construction on the Revolution Wind farm off the Rhode Island coast and the Empire Wind project near New York before a federal judge and BOEM lifted stop work orders. Those projects have since been suspended again. Upon assuming office, President Donald Trump issued a presidential memo that withdrew areas on the outer continental shelf from offshore wind leases, which a federal court deemed earlier this month as “arbitrary and capricious.”
Dominion Energy asserts that it had already acquired all necessary federal, state, and local permits for the Coastal Virginia Offshore Wind farm, which commenced construction in 2024. The company has invested $8.9 billion thus far in the $11.2 billion project anticipated to start generating energy next year. Once operational, the offshore wind facility is expected to generate 9.5 million megawatt-hours of emissions-free electricity annually, enough to power approximately 660,000 homes in the U.S.
