Trump Tariffs Could Inflate Costs of Dominion Energy’s Offshore Wind Farm by $500 Million

(Bloomberg) — President Donald Trump’s tariffs threaten to increase the cost of a big offshore wind farm that Dominion Energy Inc. is building by as much as $500 million, the company said Thursday.

The Coastal Virginia Offshore Wind project off the coast of Virginia has already seen tariff costs of $4 million, Chief Executive Officer Bob Blue said on an earnings call. The project’s current budget is $10.7 billion.

If the tariffs continue through the end of the second quarter, the added cost for CVOW would rise to $120 million, and if kept in place through the end of next year, when the project is expected to enter service, the impact would be approximately $500 million.

The Trump tariffs have driven up costs across the economy, including for energy projects that typically rely on imported materials. Offshore wind projects have also been under fire since Trump took office, with his administration halting work on an offshore wind farm being built off New York.

CVOW would produce 2.6 gigawatts at full capacity and would provide power to its customers in Virginia, which includes the global tech hot spot known as Data Center Alley. A gigawatt is akin to the capacity of one nuclear reactor and can power roughly 750,000 homes.

Blue said on the call that he was very comfortable the project would continue moving forward, adding the company’s interactions with permitting agencies have continued normally.

“We don’t think it’s going to be paused,” he said. “It’s the fastest way to get 2.6 gigawatts on the grid to serve tech companies, defense and security installations and important American industries like shipbuilding.”

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