Dominion Energy: A Key Player in the Convergence of Energy and AI

As the realm of artificial intelligence (AI) continues to expand, companies linked to energy generation are increasingly becoming vital players in this technological revolution. Dominion Energy, Inc. (NYSE:D) emerges as an intriguing case study, strategically positioned to meet burgeoning energy demands created by the ongoing AI boom.

Harnessing the Power of AI

Dominion Energy caters primarily to the vast cluster of data centers in northern Virginia—one of the most significant tech hubs in the United States. As AI applications grow exponentially, the demand for energy in this region is set to soar, presenting a lucrative opportunity for utility companies that can provide reliable services.

In its recent Q1 2025 earnings call, Dominion disclosed that it has approximately 40 gigawatts (GW) of data center capacity in various stages of contracting. This endeavor includes around 10 GW already secured under electric service agreements, demonstrating the utility’s commitment to ramping up its energy output to support the AI ecosystem.

Bold Investments for a Sustainable Future

Recognizing the critical need for renewable energy, Dominion is simultaneously pursuing green initiatives. The company is in the process of constructing a major offshore wind farm off the coast of Virginia, aimed at cementing its ability to meet future energy demands. This wind farm is expected to be operational by the end of next year, aligning perfectly with the timeline of anticipated surges in AI-related power usage.

Furthermore, Dominion has set an ambitious capital investment forecast, projecting a whopping $50 billion from 2025 to 2029. This financial commitment aims to bolster earnings, targeting an annual growth of 5% to 7%, which signals strong confidence in the growing interplay between energy and technology.

Innovative Collaborations

On the innovation front, Dominion Energy is exploring modern energy solutions by engaging with key military and tech stakeholders. The company recently inked a deal with the Naval Weapons Station Yorktown to explore the potential for building a small modular reactor (SMR). This initiative underscores the versatility of SMRs, which offer a safer, more efficient nuclear option compared to traditional plants, making them suitable for various applications.

Additionally, Dominion’s collaboration with Amazon to evaluate the establishment of an SMR near its North Anna nuclear station showcases a growing interest in harnessing nuclear technology in the face of rising energy demands. This partnership exemplifies how traditional energy sectors can innovate alongside tech giants advancing AI capabilities.

The Investment Landscape

Despite its solid positioning, it’s essential to consider the broader investment landscape. Analysts suggest that while Dominion is a strong investment choice, certain AI stocks may present greater upside potential without the same level of risk. For investors looking for undervalued AI opportunities, there are alternatives that leverage current economic trends, such as onshoring and technological tariffs.

Conclusion

As AI technology continues to evolve, energy companies like Dominion Energy are becoming crucial to its sustainable growth. Their initiatives not only provide the backbone for new data centers but also demonstrate a shift towards integrating renewable energy sources in response to modern demands. Whether you’re an investor, a tech enthusiast, or a stakeholder in sustainable energy, Dominion’s trajectory is worth keeping an eye on as AI shapes the future of both industries.

Priya Desai

Writes about personal finance, side hustles, gadgets, and tech innovation.

Bio: Priya specializes in making complex financial and tech topics easy to digest, with experience in fintech and consumer reviews.