W.Va. courts data centers statewide, touting billions in investment amid AI demand

West Virginia is making a concerted effort to attract large data centers across the state, with officials like Del. Kathie Hess Crouse emphasizing the potential for multi-billion dollar investments and significant tax revenue to support local services such as emergency services and school levies. Governor Patrick Morrisey highlighted that companies are submitting detailed engineering and environmental plans, including water mitigation strategies, with a commitment to responsible development and noise limitation. Specific potential sites are being considered in Mason County and Putnam County. Despite the optimistic outlook from state leaders, concerns are being voiced regarding the actual economic benefits and environmental impact. Kelly Allen from the West Virginia Center on Budget and Policy points out that most jobs created by data centers are temporary construction roles, with few permanent positions, which may not benefit local workers. Furthermore, a recently approved law, House Bill 2014, which is set to go into effect in 2025, allows the state to collect the majority of property tax revenue from data centers, potentially diminishing the direct financial impact on counties, municipalities, and school districts. Environmental groups are also scrutinizing the plans, particularly concerning water usage. Dr. Nathaniel Hitt from the WV Rivers Coalition noted that large-scale data centers could consume up to 5 million gallons of water daily and criticized the lack of transparency regarding the amount and source of water. He also mentioned that current reporting requirements occur after water has been used, with no existing caps on consumption, raising questions about the adequacy of environmental oversight. As more projects are proposed, experts believe key questions about long-term impacts on economies and natural resources remain.