Dominion Energy Is Officially Running the Largest Offshore Wind Project in the U.S. Is the Stock a Buy?

Dominion Energy (D 0.03%) has officially switched on the first commercial turbine in its Coastal Virginia Offshore Wind project, the largest such project in the U.S. It sets the stage for the company to gradually bring the remaining turbines on line through early 2027.

The completed wind farm will generate approximately 2.6 gigawatts of power, enough for 660,000 homes. It also helps kick off a huge spending plan over the next five years to build the generation and distribution infrastructure needed to supply hundreds of data centers.

Does this latest project milestone warrant buying Dominion Energy stock now?

Image source: Getty Images

Dominion’s wind project is only a piece of a huge spending plan

The Coastal Virginia wind project was huge, costing an estimated $11.5 billion. However, most of that project’s cost isn’t even part of Dominion’s upcoming $64.7 billion spending plans. Most of that, $54.8 billion, will focus on Virginia to support the power requirements of hundreds of data centers.

Expand

NYSE: D

Dominion Energy

Today’s Change

(-0.03%) $-0.02

Current Price

$60.88

Key Data Points

Market Cap

$54B

Day’s Range

$60.63 - $61.44

52wk Range

$48.07 - $67.57

Volume

3.7M

Avg Vol

5.7M

Gross Margin

55.15%

Dividend Yield

4.38%

Virginia has more data centers than any other state, and by a wide margin, because it’s close to where deep-sea data cables connect to the mainland and to the U.S. capital. The company already serves more than 450 data centers in Virginia across 50 companies. The power demand is evident in Dominion’s contracted data center capacity, which has soared to 48.5 gigawatts as of the end of 2025.

Yes, the company is spending a lot of money, but it will monetize those investments as these projects come on line and generate recurring revenue for years to come. The capital spent is essentially planting the seeds for decades of growth.

Is Dominion a buy?

The hardest part for investors is riding out this investment phase. The company is taking on debt, though its credit rating remains investment-grade, at BBB+ from S&P Global.

It also hasn’t raised its dividend in several years, and the payout ratio is still a bit high at 74% of current-year earnings estimates. The stock yields 4.4% at its current share price, which helps.

Management is guiding for 5% to 7% annualized earnings growth through 2030, which would translate to annualized total returns in the 9% to 11% range. That said, investors may not see returns quite that good right away. Dominion stock trades at 16 to 17 times 2026 earnings estimates, which is no bargain for the growth that management anticipates.

In all, Dominion’s data center opportunities and hefty dividend could make it a buy for long-term investors. Still, given the slightly expensive valuation, they can afford to be patient and pick their spot, ideally at a lower price than the market is offering today.