Growing Value of Offshore Wind Farms In An AI World: The Coastal Virginia Offshore Wind Project

You know the saying, "Pay attention to what they do, not what they say." This rings especially true when it comes to offshore wind.

While a good number of offshore projects along the East Coast—a prime spot for offshore wind—are being paused, stopped, or even canceled, America's largest (2.6 GW) offshore wind project, the Coastal Virginia Offshore Wind (CVOW) development, is moving full speed ahead, and for good (capitalist) reasons.

Good Business Support Moves Massive Energy Transition Projects Fast Forward

A key reason CVOW is progressing while other projects stumble is its Virginia location. Virigina is The Data Denter capital of the world. Virginia's robust data center industry requires signficant energy demands, and this demand, in turn, supports projects CVOW in ways other states simply can't.

The Coastal Virginia Offshore Wind project is now 50% complete and slated for completion in 2026, with operations beginning in 2027. Virginia's unique energy demands, driven by its data center leadership, make it a crucial test case. Many will be watching as this massive 2.6 GW project comes online. It hasn't experienced the delays that have plagued many other offshore wind projects in the US. Expect it will become a hero project.

As AI Data Center Electricity Demands Grow (i.e. Stargate), Offshore Wind Will Be A Part of Solution

CVOW's continued progress, coupled with ever-growing energy demands from projects like Stargate, suggests that states up and down the East Coast will likely look to offshore wind, as they bid to become home to recentely announced projects, such as the $500 billion stargate project, along with other projects that come about.

"OpenAI said on Thursday that the company is considering building data center campuses in 16 states that have indicated “real interest” in the project"

The rationale for east coast states to use the uniqueness of offshore winds to win big deals is simple. The east-coast states is already electricity constrained, and if East Coast states want to win new projects, they will need the hyperscalers to fund offshore wind projects, and new (coastal) transmission capacity, since the existing infrastructure, accross the east coast, is among the oldest in the country.