Trump halts wind projects, including Coastal Virginia Offshore Wind, Dominion stock drops 4%

Key Points

• The Trump administration halted Coastal Virginia Offshore Wind, the largest project of its kind in the U.S.
• The administration also paused leases for Vineyard Wind 1, Revolution Wind, Sunrise Wind and Empire Wind 1, all of which are under construction.
• Interior Secretary Doug Burgum said the administration paused leases for the projects due to national security concerns identified by the Pentagon.

Trump Administration Halts Major U.S. Offshore Wind Projects; Dominion Stock Drops

On Monday, the Trump administration announced the suspension of Coastal Virginia Offshore Wind, the largest wind project in the United States, along with four other wind projects under development off the East Coast. The decision marks a significant setback for the U.S. wind energy industry.

Following the announcement, Dominion Energy, the utility behind the Virginia project, saw its shares fall by nearly 4%.

The other projects affected include:

• Vineyard Wind 1 off Massachusetts
• Revolution Wind off Rhode Island
• Sunrise Wind off Long Island and New England
• Empire Wind 1 south of Long Island

Combined, these projects were expected to generate enough electricity to power more than 2 million homes, according to statements from the developers.

Interior Secretary Doug Burgum explained that the leases were paused due to national security concerns raised by the Pentagon.

Shares of Denmark’s Orsted, developer of the Revolution and Sunrise projects, fell 11%, while Norway’s Equinor, developer of Empire Wind 1, dropped about 1% after the Trump administration paused several major offshore wind projects.

The Coastal Virginia Offshore Wind (CVOW) project, featuring 176 turbines, was expected to provide power for more than 600,000 homes and was scheduled for completion next year. Dominion Energy, the project developer, emphasized that CVOW is critical for both U.S. national security and Virginia’s rapidly growing energy demands. Northern Virginia is home to the world’s largest cluster of data centers, and rising electricity needs driven by artificial intelligence are contributing to higher prices in the state.

Dominion warned that halting the project could threaten grid reliability, impact critical military and AI operations, raise energy costs, and put thousands of jobs at risk. Both Governor Glenn Youngkin and incoming Governor Abigail Spanberger support the project, citing the need to expand renewable energy to manage rising electricity costs.

The Interior Department explained that the pause will allow the federal government to work with leaseholders and state partners to assess potential national security risks. Officials noted that turbine blades and highly reflective towers could interfere with radar systems, creating “clutter” that obscures legitimate moving targets.

President Trump has long opposed the U.S. wind industry. On January 20, he ordered a freeze on all new wind leases and permits pending federal review. Senate Minority Leader Chuck Schumer criticized the administration’s move, calling it “unhinged, irrational, and unjustified,” warning that it could drive energy bills higher at a time of already soaring costs.

Trump’s actions have faced legal challenges. On December 8, Judge Patti Saris of the U.S. District Court for the District of Massachusetts ruled that the administration’s order was “arbitrary and capricious and contrary to law.”