E3, a Willdan Company, Publishes Study on Grid Strain and Customer Impacts from Virginia Data Center Growth
Willdan Group (NASDAQ: WLDN) has published a significant study through its subsidiary E3 on the impact of data center growth in Virginia's electric grid and ratepayers. The study, commissioned by the Virginia Joint Legislative Audit and Review Commission (JLARC), reveals three key findings: data center growth will be by energy infrastructure development, achieving clean energy goals will require unprecedented investments in diverse generation resources, and innovative cost allocation methods will be needed to protect existing ratepayers. The analysis aims to guide Virginia's grid investment strategy while maintaining reliability and advancing clean energy objectives.
Willdan Group (NASDAQ: WLDN) ha pubblicato uno studio significativo attraverso la sua sussidiaria E3 sull'impatto della crescita dei data center sulla rete elettrica della Virginia e sui consumatori. Lo studio, commissionato dalla Virginia Joint Legislative Audit and Review Commission (JLARC), rivela tre risultati chiave: la crescita dei data center sarà sostenuta dallo sviluppo delle infrastrutture energetiche, il raggiungimento degli obiettivi di energia pulita richiederà investimenti senza precedenti in risorse di generazione diversificate e saranno necessari metodi innovativi di allocazione dei costi per proteggere i consumatori esistenti. L'analisi mira a guidare la strategia di investimento sulla rete della Virginia mantenendo l'affidabilità e promuovendo gli obiettivi di energia pulita.
Willdan Group (NASDAQ: WLDN) ha publicado un estudio significativo a través de su filial E3 sobre el impacto del crecimiento de los centros de datos en la red eléctrica de Virginia y los consumidores. El estudio, encargado por la Virginia Joint Legislative Audit and Review Commission (JLARC), revela tres hallazgos clave: el crecimiento de los centros de datos será impulsado por el desarrollo de infraestructura energética, lograr los objetivos de energía limpia requerirá inversiones sin precedentes en recursos de generación diversos, y se necesitarán métodos de asignación de costos innovadores para proteger a los consumidores existentes. El análisis tiene como objetivo guiar la estrategia de inversión de la red de Virginia, manteniendo la fiabilidad y avanzando hacia los objetivos de energía limpia.
Willdan Group (NASDAQ: WLDN)는 자회사 E3를 통해 버지니아의 전력망과 요금 납부자에 대한 데이터 센터 성장의 영향을 다룬 중요한 연구를 발표했습니다. 버지니아 합동 입법 감사 및 검토 위원회(JLARC)가 의뢰한 이 연구는 세 가지 주요 발견을 드러냅니다: 데이터 센터 성장은 에너지 인프라 개발에 의해 이루어질 것입니다, 청정 에너지 목표를 달성하기 위해서는 다양한 발전 자원에 대한 전례 없는 투자가 필요하며, 기존의 요금 납부자를 보호하기 위해 혁신적인 비용 분배 방식이 필요할 것입니다. 이 분석은 버지니아의 전력망 투자 전략을 안내하고 신뢰성을 유지하며 청정 에너지 목표를 추진하는 것을 목표로 합니다.
Willdan Group (NASDAQ: WLDN) a publié une étude significative par le biais de sa filiale E3 sur l'impact de la croissance des centres de données sur le réseau électrique de Virginie et sur les consommateurs. L'étude, commandée par la Virginia Joint Legislative Audit and Review Commission (JLARC), révèle trois conclusions clés : la croissance des centres de données sera soutenue par le développement des infrastructures énergétiques, atteindre les objectifs d'énergie propre nécessitera des investissements sans précédent dans des ressources de production diversifiées, et des méthodes innovantes d'allocation des coûts seront nécessaires pour protéger les consommateurs existants. L'analyse vise à guider la stratégie d'investissement du réseau de Virginie tout en maintenant la fiabilité et en avançant vers les objectifs d'énergie propre.
Willdan Group (NASDAQ: WLDN) hat über seine Tochtergesellschaft E3 eine bedeutende Studie über die Auswirkungen des Wachstums von Rechenzentren auf das Stromnetz und die Verbraucher in Virginia veröffentlicht. Die Studie, die von der Virginia Joint Legislative Audit and Review Commission (JLARC) beauftragt wurde, zeigt drei zentrale Erkenntnisse: das Wachstum der Rechenzentren wird durch die Entwicklung der Energieinfrastruktur unterstützt, das Erreichen von Zielen für saubere Energie wird ohne vorherige Investitionen in vielfältige Erzeugungsressourcen nicht möglich sein, und es werden innovative Kostenverteilungsmethoden benötigt, um bestehende Verbraucher zu schützen. Die Analyse zielt darauf ab, die Investitionsstrategie des Stromnetzes von Virginia zu steuern und gleichzeitig die Zuverlässigkeit aufrechtzuerhalten und die Ziele für saubere Energie voranzutreiben.
- Study positions Willdan as a thought leader in grid infrastructure analysis
- Strategic government contract demonstrates strong public sector relationships
- Findings could lead to future consulting opportunities in other states
- None.
Insights
The Virginia data center study reveals critical infrastructure challenges that will shape the future of data center development and energy markets. The findings highlight a significant bottleneck where data center expansion is being constrained by power infrastructure limitations - a important insight for utility companies and real estate developers in the data center space.
The requirement for "unprecedented investments" in generation resources signals potential revenue opportunities for Willdan through consulting and implementation services. However, the study's emphasis on cost allocation challenges suggests complex regulatory negotiations ahead that could impact project timelines and profitability. The strategic value lies in positioning Willdan as a thought leader in grid modernization and clean energy transition, potentially leading to similar consulting engagements in other high-growth data center markets.
For investors, this represents a double-edged sword: while it demonstrates Willdan's expertise in a growing market segment, the infrastructure constraints identified could limit near-term growth opportunities in similar markets. The study's implications extend beyond Virginia, potentially influencing data center development strategies nationwide.
The study's findings on cost recovery and ratepayer impacts touch on a critical regulatory challenge that will influence utility investment decisions and rate structures across data center markets. The need for "innovative ways to allocate and recover new infrastructure costs" suggests potential regulatory framework changes that could create consulting opportunities for firms like Willdan.
The emphasis on maintaining grid reliability while pursuing clean energy goals points to a complex balancing act that will require sophisticated planning and analysis services. This positions Willdan's E3 subsidiary favorably for future consulting contracts, particularly as other states grapple with similar challenges in their data center corridors.
The regulatory implications extend beyond Virginia, potentially creating a template for other jurisdictions facing similar growth pressures. This could lead to increased demand for Willdan's services in regulatory compliance and infrastructure planning, though the timing and magnitude of such opportunities remain uncertain.
Energy + Environmental Economics (E3), Willdan’s wholly owned subsidiary, conducted this study and found that:
- The scale and pace of data center growth will likely be constrained by the timing of new energy infrastructure development.
- To achieve clean energy goals, the state will need unprecedented investments in a diverse mix of generation resources, including both existing and emerging technologies.
- This level of growth will require innovative ways to allocate and recover new infrastructure costs and mitigate impacts to existing ratepayers.
“This analysis will inform Virginia’s approach to grid investments so they can maintain grid reliability, value to ratepayers, and progress toward ambitious clean energy goals,” said Mike Bieber, Willdan’s CEO. “Nationally, other states can look to
The full study, including E3’s findings and recommendations, can be found here.
About JLARC
The Joint Legislative Audit and Review Commission (JLARC) conducts program evaluation, policy analysis, and oversight of state agencies on behalf of the Virginia General Assembly. The duties of the Commission are authorized by the Code of
About Willdan
Willdan is a nationwide provider of professional, technical, and consulting services to utilities, government agencies, and private industry. Willdan’s service offerings span a broad set of complementary disciplines that include electric grid solutions, energy efficiency and sustainability, energy policy planning and advisory, engineering and planning, and municipal financial consulting. For additional information, visit Willdan's website at www.willdan.com.
Forward-Looking Statements
Statements in this press release that are not purely historical are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. It is important to note that Willdan’s actual results could differ materially from those in any such forward-looking statements. Factors that could cause actual results to differ materially include, but are not limited to, the risk factors listed from time to time in Willdan’s reports filed with the Securities and Exchange Commission, including, but not limited to, the Annual Report on Form 10-K filed for the year ended December 29, 2023. Willdan cautions investors not to place undue reliance on the forward-looking statements contained in this press release. Willdan disclaims any obligation to, and does not undertake to, update or revise any forward-looking statements in this press release.
View source version on businesswire.com: https://www.businesswire.com/news/home/20241219828969/en/
Al Kaschalk
Vice President
310-922-5643
akaschalk@willdan.com
Source: Willdan Group, Inc.
FAQ
What are the key findings of Willdan's (WLDN) Virginia data center study?
How will Virginia's data center growth impact the electric grid according to WLDN's study?
What solutions did Willdan's E3 study propose for Virginia's grid challenges?
Who commissioned Willdan's (WLDN) study on Virginia data centers?
