Officials unveil new data center principles
West Virginia officials, led by Gov. Patrick Morrisey, unveiled a seven-point Responsible Data Center Development Plan to guide the state's data center program. This framework aims to attract hyper-scale data centers while protecting the state's environment and residents, building on last year's Power Generation and Consumption Act (HB 2014). The plan emphasizes comprehensive planning, tax benefits, ratepayer protections, water safeguards, and local community considerations.
CHARLESTON, WV – Governor Patrick Morrisey and legislative leaders presented the West Virginia Responsible Data Center Development Plan, a seven-point framework designed to guide data center expansion across the state. The initiative aims to position West Virginia as a technology leader while safeguarding its natural resources and resident well-being over the next two decades.
The plan complements the previously enacted House Bill 2014, known as the Power Generation and Consumption Act, which sought to attract data centers and microgrids to the state. The new principles address key areas including comprehensive planning and oversight, requiring developers to demonstrate financial capacity and capital commitments, with project approval contingent on clear benefits outweighing infrastructure and environmental costs. It also mandates that data center revenue contribute a net increase in tax collections at all state levels and establishes a tax distribution framework, with 50% of property taxes allocated to a personal income tax reduction fund.
Critically, the plan includes a "Ratepayer Protection Pledge" under principle three, ensuring that data center growth does not inflate electricity prices for West Virginia residents and small businesses by requiring developers to procure their own energy resources and fund electrical infrastructure upgrades. Principle four focuses on water protection, adhering to the Water Resources Protection and Management Act and subjecting facilities to environmental reporting rules. To address local control concerns, a Data Advisory Council will be formed to set requirements for property setbacks, noise mitigation, and aesthetic integration.
Further principles involve coordination with electric utilities and federal agencies to assess grid capacity and stability, and a focus on national security by developing data center capacity for critical infrastructure. While other states consider moratoriums, West Virginia is proactively establishing a regulatory framework, although some, like Jennie Smith of the West Virginia Rivers Coalition, express cautious optimism, hoping for continued community involvement and resource protection.