Agreement Set to Keep Warwood Data Center Below 90MW
The city of Wheeling and Silicon Foundry Energy LLC have agreed to a binding memorandum of understanding (MOU) to limit the company's data center development in Warwood to below 90 megawatts. This agreement, expected to be approved by the City Council, addresses community concerns regarding noise, water pollution, and electricity usage, while also allowing the city to maintain a Tax Increment Financing District.
The city of Wheeling and Silicon Foundry Energy LLC have reached a binding memorandum of understanding (MOU) that stipulates the company will not develop a "high-impact" data center in Warwood, meaning its critical IT load will remain below 90 megawatts. This agreement is expected to be approved by the Wheeling City Council next Tuesday, following its review by both parties.
Community members had previously expressed significant concerns over Silicon Foundry Energy's plans for a data center and energy technology campus at the former Centre Foundry & Machine Company property. These concerns included potential noise, water pollution, and increased electric bills. While the company's website initially mentioned a 100-megawatt facility, officials have since stated that this was not their objective.
Wheeling City Manager Robert Herron explained that the MOU provides certainty to the community and enables the city to include the area in a Tax Increment Financing (TIF) District, a mechanism barred for high-impact data centers under West Virginia law. Attorney David Croft, representing Silicon Foundry Energy LLC, noted that the agreement benefits both sides by facilitating the TIF District for public improvements and aiding the company with infrastructure and utility connections. The company has committed not to seek certification as a high-impact data center.
Despite calls from data center opponents for a moratorium on data center development in the city, council members and administrators have stated they are legally unable to enact one. The MOU ensures that the Silicon Foundry operation, by remaining below the high-impact threshold, will be subject to local governmental authority.