Data Centers Caught In Power Play
Electricity Plan Confounds Firms

By Kendra Marr
Washington Post Staff Writer
Tuesday, December 11, 2007

With five computer data centers in Northern Virginia, DuPont Fabros Technologies is a major local player in a growing industry responsible for safeguarding vast repositories of information stored online.

It also is a large user of electricity. In 2006, U.S. data centers nationwide consumed 61 billion kilowatt hours of electricity, enough to power about 5.8 million American households for a year, a recent Environmental Protection Agency report said.

So when Dominion Virginia Power of Richmond proposed running a new 500 kilovolt power line through a 65-mile stretch of rural Northern Virginia, how did DuPont Fabros respond?

"We're trying to remain silent," said Lammot J. du Pont, co-founder and executive chairman of the District company.

A new $243 million transmission line carrying additional power to the region could enhance its business, he said, but soaring towers and high-voltage lines could devalue its property.

"We're on both sides," du Pont said. "If we take one side versus the other, we're just hurting ourselves."

Electricity might be a vital commodity to technology firms, but many in Northern Virginia are ambivalent about a project that has pitted Dominion against environmentalists and community groups.

The Northern Virginia Technology Council, an association representing about 1,100 technology companies, decided not to endorse either side after hearing presentations from Dominion and the opposing Piedmont Environmental Council. The council is pushing the region to become a "green hub" through innovation, education and incentives for alternative energy use.

"We just really decided [the issue] was too multifaceted," council spokeswoman Michelle Snyder said.

Dominion is undeterred, saying it continues to meet with businesses, chambers of commerce and community groups to explain why the new power line is needed.

Since 1990, Northern Virginia's peak electricity demand has jumped about 76 percent, Dominion said. Expansion of Metrorail and Washington Dulles International Airport, increased development at Tyson's Corner and the growing high-tech economy will only gobble up more power. Twenty-five data centers are projected to come on line soon, and Dominion predicts an 8 percent increase by 2011, at which point rolling blackouts may be necessary during peak hours if more power isn't funneled into the region.

To help it make its case, Dominion provides financial support to the Coalition for Reliable Energy, a group founded in October by the Fairfax Chamber of Commerce. The coalition lists 60 supporters, including a few technology firms.

Bill Fairchild, president of Manassas commercial builder R.W. Murray, said his company recently moved a government contractor into the former Independence Air headquarters, a modern, five-year-old building. "You would think that building would have plenty of power for our client," Fairchild said. "But when they took it over, they needed to double the power."

Each new desk required two computers -- one for the secure network and another for everyday use, he said.

Another coalition member, Rodney Loges, president of the digital marketing firm NetStrategies of Alexandria, said his firm endured blackouts one or two times a week for a month because of capacity constraints after a condominium complex was built near his office.

"When you're sending employees home early from work because there's not enough power, it's expensive," he said.

Brian Chavis, founder of the technology consulting firm ARGroup in Leesburg, joined the coalition to initiate more discussion. He's not entirely sure who would benefit from the new power line.

"Everyone knows on Route 66 and Route 28 where the cars are going," he said. "Electricity is different."

So far, the coalition has had little success enlisting data center operators to its ranks, despite Dominion's claims they would be prime beneficiaries of the new line.

"We talked to several people considering building data centers in Northern Virginia," said Le-Ha Anderson, a Dominion spokeswoman. "So far there's not much willingness to come out to support the transmission line."

An exception is Equinix, a California company that provides data center and Internet exchange service. The company sent a letter supporting Dominion to the State Corporation Commission, which is reviewing the proposal and has pledged to testify on the power company's behalf. Equinix said in March that it planned to expand in the Dulles corridor by building a data center, scheduled to open next year, adjacent to four it operates in Ashburn. If Equinix has trouble getting enough power in Ashburn, it'll be forced to build elsewhere, said Howard Horowitz, vice president of real estate.

Other technology executives are not so sure adding capacity is the answer.

Patrick J. Sweeney II, president and chief executive of Odin Technologies in Dulles, said building additional infrastructure is like digging more oil wells to solve an oil crisis.

"Most business owners today in my peer group would much rather see solutions based on technology using less power and less demand on the grid rather than adding more capacity," said Sweeney, who previously founded a company that managed data centers.

Some companies said they just preferred to stay on the sidelines. Sprint of Reston said the issue was not one of its lobbying priorities. AOL of Dulles declined to comment.

Ditto for Timothy Caulfield, senior vice president for Savvis, a data center operator. "Applying our company resources" to help Dominion, he said, "is not one of the things in our priority stack."