Data center developers seek on-site energy in Wise

Developers for a data center campus in Wise County, Virginia, are seeking to generate 600 megawatts of power on-site to address growing concerns over energy consumption by data centers. The project, proposed for the Lonesome Pine Regional Business & Technology Park, involves a collaboration between Wise Innovation Hub Venture, an entity connected to data center developer Oasis Digital Properties, and Texas-based Red Post Energy Group. The plan could involve a $1 billion investment: Red Post Energy Group is studying the feasibility of a $300 million facility near an existing natural gas pipeline to convert natural gas to hydrogen, which would then be transported via a new 10-mile pipeline to a $700 million power station at the data center campus. If hydrogen proves impractical, natural gas would be used directly. Brian D. Falin, Wise County's director of economic development, highlighted the county's existing natural gas infrastructure as an asset. The developers anticipate that a single data center building could generate $2 million to $3 million annually in real estate and property taxes for Wise County. Ross Litkenhous, a partner with Wise Innovation Hub Venture, noted that the project involves 300 acres under a purchase-option and could ultimately include eight to ten data center buildings. Litkenhous is closely monitoring a Virginia General Assembly bill concerning data centers' tax exemptions and potential power source restrictions, expressing uncertainty regarding how restrictive the new legislation in Richmond might be. Once a feasible power supply is determined, the first data center is projected to open within three years.