Data Center Development Takes Center Stage At House Interim Meetings
West Virginia lawmakers discussed strategies to attract data centers to the state during interim meetings in Charleston. Discussions focused on leveraging power generation expansions and addressing concerns about power consumption, water usage, and community engagement. House Bill 2014, passed in 2023, centralized data center oversight at the state level, removing most local control.
During two days of interim meetings in Charleston, West Virginia, state lawmakers explored strategies to attract data center development to the state. Delegates, fresh from attending the Data Center World conference, reported on industry frustrations with power generation delays and highlighted West Virginia's potential to benefit from planned expansions in power generation and transmission, including Gov. Patrick Morrisey's pledge to achieve 50 gigawatts of power by 2050.
Delegates Marty Gearheart (R-Mercer) and Jordan Maynor (R-Raleigh) suggested utilizing abandoned mine properties for data center sites and stressed that access to reliable power is a critical factor for developers. Delegate Tristan Leavitt (R-Kanawha) emphasized the need for better communication between the industry and local communities, noting historical secrecy. Leavitt also addressed common misconceptions, asserting that artificial intelligence is not a fad and that a 500-megawatt data center uses approximately the same amount of water as an 18-hole golf course.
Concerns were raised by some delegates regarding the potential for data center development to increase utility prices and strain existing power infrastructure. Delegate Shawn Fluharty (D-Ohio) pointed out that House Bill 2014, enacted in 2023, largely removed city and county oversight of data centers, centralizing approval processes at the state level. The voluntary "Ratepayer Protection Pledge," where companies like Meta and OpenAI commit to covering infrastructure upgrade costs, was mentioned, though it doesn't extend to all third-party developers.
Uncertainty also surrounds the exact tax revenue potential of data centers. State Tax Commissioner Matt Irby informed the House Subcommittee on Economic Development that precise valuations are challenging without existing large-scale data centers to assess, and it will be years before such projects can be formally evaluated for their tax impact.