Amid nationwide concern over land use, utility and water consumption, and noise, the State of West Virginia’s data center plan promises answers to these concerns, along with a novel idea: eliminating the Mountain State’s income tax.
First reported in Reason, Governor Patrick Morrissey, pledging to avoid “repeating the mistakes of other states”, is offering the West Virginia Responsible Data Center Development Plan, a 20-year plan built around seven core principles:
I: West Virginia should operate under a comprehensive plan
Establish state criteria for development including permitting processes, maintaining grid stability, and limiting development to locations that make economic and environmental sense. West Virginia currently has no hyperscale data centers.
II: All West Virginians will benefit from data center revenue
*Reduction/elimination of the state income tax. By law, fifty percent of data center project revenue is used for this purpose.
*Local communities receive revenues for their communities and schools. 30 percent of the revenue associated with these projects goes to the county where the project is
located. An additional ten percent of the revenue associated with these projects goes to all counties across the state.
*The remaining ten percent will be used for improved electrical, water, and wastewater projects for the citizens and communities of our state.
III: Ratepayers must be protected from high electricity prices
The proposal shields electric ratepayers from costs associated with certified microgrids, prohibiting utility customers from bearing construction, operational, or grid-related expenses. Instead, these costs must be covered by the generator or consumers within the microgrid district.
Data centers will be required to fully fund their own electrical infrastructure upgrades and energy capacity needs.
IV: Our water must be protected
All current environmental protections apply to data center developments choosing to locate in the state.
V: West Virginia must protect and grow our communities
The state will establish a structured, collaborative relationship between citizens, local governments, state and federal regulatory agencies, and operators.
.VI: West Virginia must increase grid reliability
The state will obtain information directly from the relevant electric utility regarding capacity, stability and infrastructure requirements.
Additionally, the developer must identify whether the project has requested a utility power study and when the utility estimates electric service can first be delivered.
VII: West Virginia must play a major role in enhancing our national security
It is in the national security interests of the United States to limit the flow of data to China, maximize computational power within the borders, and strengthen the resilience of our critical digital infrastructure.
To allay concerns over potential eminent domain efforts by the state to seize property for approved projects, West Virginia’s plan promises sites will be acquired “through voluntary market transactions.”
The state’s proposal concludes:
West Virginia’s Responsible Data Center Principles establish a strategic framework for sustainable, 20-year development that leverages HB (House Bill) 2014 to pair high-tech economic growth with local community benefits. By focusing on self-funded infrastructure, advanced water-saving technologies, and direct revenue sharing, the initiative aims to attract investment while protecting ratepayers and environmental assets.
