West Virginia plan to gain support for data center development includes elimination of state income tax
West Virginia has proposed a 20-year Responsible Data Center Development Plan to attract data centers while addressing environmental, utility, and land use concerns. The plan, which includes using data center revenue to eliminate the state income tax, sets criteria for development, ensures grid stability, and protects ratepayers. It emphasizes self-funded infrastructure and community benefits.
Governor Patrick Morrissey has introduced the West Virginia Responsible Data Center Development Plan, a 20-year statewide initiative aimed at attracting data centers while proactively addressing common concerns such as land use, utility and water consumption, and noise. The plan, first reported in Reason, seeks to differentiate West Virginia by avoiding mistakes made by other states in data center development.
Key principles of the plan include establishing state criteria for development, ensuring all West Virginians benefit from data center revenue, and protecting ratepayers from high electricity prices. Specifically, 50% of data center project revenue would be used to reduce or eliminate the state income tax, 30% would go to the host county, and 10% to other counties, with the remaining 10% funding infrastructure improvements. Data centers would be required to fully fund their electrical infrastructure and capacity needs.
The proposal also emphasizes maintaining environmental protections, fostering collaboration between citizens, governments, and operators, and increasing grid reliability by requiring developers to provide utility power study information. Furthermore, it aims to enhance national security by limiting data flow to China and strengthening digital infrastructure. The plan ensures that land acquisition for projects will occur through voluntary market transactions, preventing eminent domain, and leverages House Bill 2014 to promote sustainable economic growth alongside community benefits.