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What’s Going on with Data Centers in Our Region

January 26, 2026

What’s Going on with Data Centers in Our Region?

Washington Gas is responding to a remarkable wave of data center development in the DMV region. These projects bring high-paying jobs, tax revenue, and cutting-edge technology to local communities, reinforcing the region’s role as a leader in cloud computing and AI innovation. Beyond economic impact, data centers are helping future-proof the region’s digital backbone. Businesses, schools, and government agencies increasingly rely on these facilities for secure, high-speed connectivity, enabling everything from telemedicine to advanced research.

But what about power accessibility? Data center developers are increasingly facing significant power availability constraints; being that the electrical grid and local electric utility infrastructure struggle to keep pace with rapid demand growth, typically taking three to ten years to complete grid upgrades, while data centers can be constructed and brought online in just 18 months, creating a challenging timing mismatch.

Given the lack of electric capacity and electric infrastructure delays, developers across the DMV region are increasingly deploying smaller scale, behind-the-meter (BTM) natural gas generation systems typically gas-fired turbine units, fuel cells, or modular generators which can tap directly into nearby natural gas pipelines and generate electricity on-site. These data centers can maintain critical business operations and support local continuity, especially during peak demand or grid upgrades. This power strategy not only can limit workflow disruptions for businesses relying on high-availability digital services in the region, it also can ease the immediate strain on electric transmission infrastructure.

Policymakers and industry leaders are working together to balance demand with economic opportunity, ensuring that data centers not only drive innovation but also potentially support community development. As demand for digital services accelerates, our region maintains its stance of being at the forefront of global technology.

Washington Gas stands ready to partner with data center developers, providing reliable natural gas solutions that support behind-the-meter generation options to help meet power needs quickly and keep projects on schedule. Call us.