'We will make our own decisions': Developer balks at WV data center violation notice
West Virginia officials have issued a violation notice to Fundamental Data LLC, the developer of a planned data center complex spanning Tucker and Grant counties, alleging a breach of a state statute for large-scale data center projects. The state claims Fundamental Data failed to seek certification as a "High Impact" data center within the required 30-day period after revealing project details indicating it meets the criteria. Fundamental Data, however, denies the violation, arguing that the certification obligation does not apply to their company and that the data centers are still conceptual, setting up a regulatory dispute with the state.
The West Virginia Department of Commerce has issued a violation notice to Fundamental Data LLC, the developer behind a proposed data center complex in Tucker and Grant counties, alleging non-compliance with a state statute requiring certification for "High Impact" data center projects. Nicholas Preservati, deputy secretary for the Department of Commerce and state Office of Energy director, informed the Purcellville, Virginia-based company that its Ridgeline project, which secured a state air quality permit last year, appears to meet the definition of a high-impact data center, requiring a 90-megawatt power capacity.
According to Preservati's letter, Fundamental Data shared project details at a May 18 meeting that indicated the project's high-impact status, triggering a 30-day deadline under House Bill 2014 of 2025 to submit a certification application. No such application was received by the June 17 deadline. Preservati gave Fundamental Data five days to clarify its plans or justify its exemption, and 10 days to file the necessary application.
However, Casey Chapman, identified as a "Responsible Individual" for Fundamental Data, countered the state's claims in a separate letter. Chapman argued that the high-impact data center certification obligation does not apply to Fundamental Data, as it will not be the entity owning, operating, or leasing the data processing facility. Chapman contended that the data centers remain conceptual, and the obligation falls only on the eventual users of the power generated, who may or may not qualify as high-impact data centers. Chapman also disputed the state's imposed 10-day filing deadline, stating it has no basis in the rule.
The dispute highlights a broader challenge for West Virginia in enforcing regulations for data center projects, which have generated significant community controversy in the state. Preservati acknowledged that HB 2014 does not specify penalties for violations but asserted that the state has various enforcement mechanisms.