West Virginia Unveils Data Center Development Plan; Local Officials Express Concerns Over Tax Revenue and Zoning Control
West Virginia Governor Patrick Morrisey announced a 20-year plan for data center expansion, focusing on statewide distribution and resource protection. However, local officials and environmental groups in Monongalia County express significant concerns regarding tax revenue loss, diminished local zoning control due to House Bill 2014, and potential impacts on electricity rates and water resources. They emphasize the need for stronger regulations and a better economic return for local communities.
Governor Patrick Morrisey has unveiled the "West Virginia Responsible Data Center Distribution Plan," a 20-year strategy for expanding data centers across the state, developed by the West Virginia Department of Commerce. The plan outlines principles for protecting data, maximizing electric power, supporting AI growth, and addressing concerns about water consumption and building setbacks, while prioritizing statewide residential benefit, ratepayer protection, clean water regulation, community growth, grid reliability, and the West Virginia workforce.
However, the plan is meeting resistance from local government officials and environmental groups. West Virginia House Delegate Evan Hansen (D-Monongalia) and Monongalia County Commissioner Sean Sikora have criticized House Bill 2014, passed in the 2025 legislative session, for removing local authority over zoning, land-use ordinances, noise restrictions, and building permits for high-impact data centers. They also contend that HB 2014, combined with the 2009 West Virginia High Technology Business Property Valuation Act (WV Code 11-6J), significantly reduces property tax revenue for local counties, potentially resulting in an approximate 38.5% loss for Monongalia County by taxing data center personal property at salvage value.
Environmental advocates, including Jennie Smith, Executive Director of the West Virginia Rivers Coalition, and James Kotcon, Chair of the conservation committee for the West Virginia Chapter of Sierra Club, are calling for more robust regulations and greater transparency. They highlight concerns about increased pollution, significant water and electricity consumption, noise and light pollution, and a lack of public input. Kotcon specifically mentioned Mon Power's request for electric rate increases to fund a new gas-fired power plant primarily for data centers, despite HB 2014's promise to protect local ratepayers. Both Hansen and Sikora indicated that while data centers might be suitable in other parts of the state, they have yet to see a proposal that offers adequate returns for Monongalia County, given the current legislative framework and potential environmental impacts.