West Virginia positions itself as emerging hub for AI and data centers

West Virginia is aggressively pursuing a strategy to become a national center for artificial intelligence and hyperscale data center development, driven by supportive policies and abundant energy resources. Governor Patrick Morrisey has championed key legislation, including House Bill 2014, which enables large-scale microgrid developments to operate as independent utilities, and House Bill 2002, designed to expedite state-issued permits for construction. These measures aim to reduce regulatory burdens and ensure reliable, high-volume power essential for AI operations. The state's efforts are already attracting major investments. In Berkeley County, developer Penzance is leading a 548-acre project in Falling Waters, which will feature a 1.9 million-square-foot facility with 600 megawatts of IT capacity. This development is projected to create over 1,000 construction jobs and 125 permanent high-paying positions. Penzance founder Victor Tolkan lauded West Virginia's collaborative, pro-business environment as crucial to the project's success. Separately, Nscale, in collaboration with American Intelligence & Power Corporation, Fidelis New Energy, and 8090 Industries, plans to develop the 2,250-acre Monarch Compute Campus in Mason County. This state-certified AI microgrid is projected to generate 2 gigawatts of power by 2028, expanding to 8 gigawatts by 2031. The campus is designed to operate as a self-supplied system, utilizing natural gas from the Appalachian Basin without drawing from local utilities. Nscale CEO Josh Payne emphasized the strategic importance of building AI infrastructure where U.S. demand is highest. These projects, along with earlier initiatives like the Mountaineer GigaSystem (a collaboration between Fidelis and Babcock & Wilcox), underscore West Virginia's momentum. The state's broader energy strategy seeks to increase power capacity to 50 gigawatts by 2050, combining private investment with supportive legislation, reliable energy generation, and strategic location advantages to become a permanent hub for AI, cloud computing, and advanced manufacturing.