Morrisey administration pitches data centers as funding source for water upgrades
An official from West Virginia's Office of Energy pitched data centers to lawmakers as a funding source for water infrastructure upgrades, particularly in the southern coalfields. Advocates, however, raised concerns about the lack of transparent 'guardrails' for accountability and the potential cumulative environmental impacts of such facilities. They emphasized the need for transparency from data center companies regarding water usage and community impacts.
During interim meetings in Charleston, W.Va., Nicholas Preservati of West Virginia's Office of Energy presented a plan to lawmakers suggesting that data centers could serve as a significant funding source for water infrastructure upgrades across the state. Preservati highlighted the potential for tens of millions of dollars in annual tax revenue from data centers, particularly if sited in the southern coalfields, with 5% of this revenue dedicated to improving water systems in small, underfunded communities.
However, the proposal was met with concerns from advocates. Jennie Smith, Executive Director of the West Virginia Rivers Coalition, questioned whether sufficient "guardrails" are in place to ensure accountability and transparent allocation of these funds. Smith emphasized the need for a comprehensive assessment of the cumulative environmental and community impacts of high-impact data centers, arguing that revenue benefits should not be considered in isolation from associated costs.
Smith acknowledged that with proper transparency and regulations, and if data center companies proactively partner with communities, there could be financial benefits. She called for clear information on water sourcing and internal systems used by data centers to ensure lasting, sustainable change rather than short-term gains.