CHARLESTON, W.Va. — Governor Patrick Morrisey, joined by Senate President Randy Smith, House Speaker Roger Hanshaw, and leaders from the West Virginia Department of Commerce, announced a unified legislative and executive strategy Thursday aimed at guiding the state’s long-term approach to hyperscale data center development.
The West Virginia Responsible Data Center Development Plan, built on the authority of House Bill 2014 and the Power Generation and Consumption Act, establishes a 20-year framework focused on ratepayer protection, tax reduction, grid modernization, and national security.
“West Virginia is stepping forward once again to lead, not by repeating the mistakes of other states, but by implementing a proactive development strategy on our terms,” Morrisey said during the press conference.
Before HB 2014, more than 50 counties lacked regulatory tools to evaluate or approve large-scale data center projects. The new framework creates statewide oversight, requiring developers to demonstrate financial capacity, committed capital, and clear power load projections before receiving certification.
Key Principles of the Plan
Comprehensive State Planning: The Data Economy Office will manage long-term development, screening developers and ensuring projects are built in optimal locations while rejecting unsuitable proposals.
Direct Tax Relief: Revenue generated through High Impact Data Center designations bypasses the state’s general revenue fund. By law, 50% goes directly toward reducing the state personal income tax, 30% supports host counties, 10% is distributed statewide, and 10% funds local infrastructure upgrades.
Ratepayer Protection: Developers must build or procure their own energy resources and fund all infrastructure and microgrid costs. Utility customers will not bear construction or grid upgrade expenses.
Water Asset Protection: Environmental oversight remains intact under the Water Resources Protection and Management Act and WVDEP regulations. The state is encouraging next-generation cooling technologies and reclaimed water systems to reduce consumption.
Community Oversight: A Data Center Advisory Council will recommend statewide standards for setbacks, noise mitigation, site security, and environmental protections. Projects must rely on voluntary market transactions and include burden‑mitigation strategies for nearby properties.
Grid Reliability: Developers must coordinate with utilities and comply with PJM, FERC, and NERC reliability standards. Facilities will operate under demand‑response models to support grid stability.
National Security: Morrisey emphasized that expanding domestic computational capacity strengthens national defense by reducing reliance on foreign infrastructure, particularly from strategic adversaries such as the People’s Republic of China.
“This shared framework gives us the exact blueprint we need to attract billions in private investment, create thousands of high-paying jobs, lower taxes, and revitalize distressed regions — all while preserving the wild and wonderful state we call home,” Morrisey said.
More information is available through the West Virginia Department of Commerce.
