Trump halts big wind projects including CVOW, Dominion stock drops 4%

The Trump administration on Monday halted Coastal Virginia Offshore Wind, the largest project of its kind in the United States, as well as four other projects off the East Coast, in a devastating blow to the wind industry.

shares Domination EnergyThe utility company developing the project fell more than 4% on the news.

The administration also suspended leases of Vineyard Wind 1 off Massachusetts, Revolution Wind off Rhode Island, Sunrise Wind off Long Island and New England, and Empire Wind 1 south of Long Island.

Interior Secretary Doug Burgum said the administration is pausing project leases for the following reasons: national security concerns It was detected by the Pentagon.

Shares of Danish Orsted, the developer of the Revolution and Sunrise projects, lost 11% of their value. Norway’s EkinorThe developer of Empire Wind 1 lost less than 1%.

Coastal Virginia Offshore Wind The project includes 176 turbines that will provide enough energy for more than 600,000 homes, according to Dominion. The project was expected to be completed next year.

Dominion said the massive project is necessary for U.S. national security and Virginia’s significantly increased energy needs. Northern Virginia is the largest hub for data centers in the world. The increasing demand for artificial intelligence is contributing to the rise in electricity prices in the state.

“Stopping CVOW for any period of time would threaten grid reliability for some of the nation’s most critical combat, AI, and civilian assets,” Dominion said. he said in a statement.

“This will also lead to energy inflation and threaten thousands of jobs,” the organization said.

Republican Virginia Governor Glenn Youngkin supports the project. Incoming Gov. Abigail Spanberger, a Democrat, won the November gubernatorial election on a promise to partially offset rising electricity costs by expanding renewable energy.

The Interior Department said in a statement that the pause would give the federal government time to “work with homeowners and state partners to evaluate the possibility of mitigating the national security risks posed by these projects.”

The U.S. government has found that turbine blades and “highly reflective towers” pose a risk of radar interference, Interior said.

President Donald Trump has targeted the US wind industry since his first day in office. Trump on Jan. 20 ordered a halt to all new leases and permits for onshore and offshore wind pending federal review.

Sen. Chuck Schumer (D-Y) condemned Trump’s campaign against wind projects as “unreasonable.” The Senate minority leader said Interior’s decision would increase energy costs.

“Trump’s obsession with destroying offshore wind projects is irrational, irrational and unfair,” Schumer said in a statement Monday. “At a time when energy costs are rising, this latest decision by DOI is a step backwards that will push energy bills even higher.”

Trump’s campaign against the wind industry ran afoul of the courts. Judge Patti Saris of the U.S. District Court for the District of Massachusetts ruled on Dec. 8 that Trump’s order was “arbitrary, capricious and unlawful.”