West Virginia Lawmakers Debate Data Center Law, Power Grid Projects Amid Local Opposition
West Virginia lawmakers are debating the state's data center district law (HB 2014) and its impact on local control, particularly concerning tax distribution and environmental effects. Discussions also covered two proposed regional electric transmission lines, partly driven by data center demand, with some legislators concerned about West Virginia ratepayers subsidizing power for Virginia's data centers. A specific project, Ridgeline by Fundamental Data in Tucker County, faces local opposition while awaiting approval.
West Virginia legislators convened for interim meetings in Charleston and Tucker County, focusing on the state's Power Generation and Consumption Act (House Bill 2014) and proposed electric transmission projects. Republican lawmakers questioned the necessity of two regional high-voltage transmission lines—NextEra Energy's MidAtlantic Resiliency Link and the Valley Link Transmission Company's project (involving Dominion Energy, FirstEnergy Transmission, and Transource)—arguing that West Virginia ratepayers should not subsidize power for data centers in other states, particularly Virginia. Utility representatives, including FirstEnergy's Abby Reale, countered that these projects are crucial for regional grid reliability across the PJM Interconnection, addressing growing electricity demand partly from data centers.
Meanwhile, Democratic lawmakers, led by House Minority Leader Sean Hornbuckle and Deputy Minority Leader Evan Hansen, called for significant amendments to HB 2014. This 2025 law streamlines data center and microgrid development by prohibiting counties and municipalities from enacting local ordinances that could hinder such projects, establishes a special property tax valuation, and redefines tax distribution. Democrats argued that the law strips local governments of essential regulatory power, particularly concerning environmental impacts like noise, emissions, and water usage, and criticized the new tax formula which diverts 50% of property tax revenue to a state-level income tax reduction fund, reducing local county allocations to 30%.
The debate highlights ongoing local opposition, exemplified by the proposed Ridgeline data center project by Fundamental Data in Tucker County. This project, which plans to use small-scale natural gas-fired power generation, faces vocal community resistance and has not yet secured approval as a data center district under HB 2014. House Speaker Roger Hanshaw is reportedly representing Fundamental Data as an attorney. Lawmakers reiterated the need for greater transparency from data center developers regarding resource use and impact on local communities.