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CHARLESTON — Data centers are coming to West Virginia.
At least that’s what state officials are hoping for as they court tech companies to set up shop in the Mountain State.
Gov. Patrick Morrisey has made big tech a key component of his administration’s economic development strategy. Earlier this year, state officials celebrated a measure Morrisey asked lawmakers to pass to lure companies to build these centers in West Virginia. There are at least four proposed projects that are publicly known.
But local residents have already organized to oppose the most high-profile of these, a proposed data center project between Thomas and Davis in Tucker County.
So, what even is a data center? Where are they being proposed? And how will they impact the state? Here’s what West Virginians need to know.
What is a data center?
A data center is basically a building full of computers. It contains the equipment companies need to process and store their software and other digital data.
As the world becomes more dependent on digital services — whether it’s online shopping, storing data in the cloud or using artificial intelligence — there’s an increased need for more space to store the necessary equipment and information.
And as the demand for this data grows, so does the need for energy. Existing utilities are struggling to keep up with this demand. Data center companies are turning to generating their own power to run their facilities.
This is why West Virginia is starting to see proposals for power plants, unconnected to the electric grid, pop up around the state.
How is the state trying to attract data centers?
In March, more than halfway through the 2025 legislative session, Morrisey asked lawmakers to pass a measure, dubbed the Power Generation and Consumption Act, in order to promote data center development in West Virginia.
Morrisey’s bill proposed to encourage small local energy grids that projects like data centers could operate independently or, in some cases, connect to the larger electrical system.
Data centers could be a major source of tax revenue and can also attract other developments and investments to a community. While these facilities can bring jobs, they often aren’t many once the construction is complete.
Lawmakers did pass the bill into law, but not before making dozens of changes to it, including to the specialized tax structure the bill establishes. Local and county officials criticized the measure because it significantly cut how much revenue localities would get from these projects.
Most of the taxes earned on data centers and microgrids will go to state level funds. The counties in which they are located will only get 30% of the revenue.
Lawmakers also stripped most, if not all, local authority over these types of projects, which local officials have expressed concern and frustration over.
Under this law, projects like these aren’t subject to county or municipal zoning. They are also exempt from any noise, lighting or land use ordinances. Local and county governments aren’t allowed to establish or enforce any regulations that would limit the development of a data center project.
Where are the proposed data centers in West Virginia?
The project in Tucker County is being proposed by Fundamental Data LLC, a Virginia-based company. The company is proposing to build an off-the-grid natural gas power plant between Thomas and Davis to power data centers and is currently seeking an air permit from the West Virginia Department of Environmental Protection.
New York-based TransGas Development Systems, LLC, is also looking to build two off-grid power plants in Mingo County. The company applied for air permits from the DEP in March for their projects, which they called the “Adams Fork Data Center Energy Campus” in their applications.
Another data center complex is proposed for Jefferson and Berkeley counties. The Berkeley County Planning Commission approved the concept plan for the county’s portion in March. Texas-based company, Fidelis New Energy, has proposed plans to build and operate a data center complex in Mason County.
What’s the big deal?
Along with data centers come a variety of environmental and public health impacts, which have caused tensions with surrounding communities across the country.
Data centers can use several million gallons of water a day, which is as much as a town with 10,000 to 50,000 people. In many places where data centers already exist, local communities have had issues with them over their water consumption.
The amount of energy they consume is another concern. A recent report from the Harvard Electricity Law Initiative found that residents have been footing the bill for the increased power costs driven by data centers.
They also are a source of noise pollution and can reach concerning decibel levels. Data centers are typically associated with a constant low humming sound, which comes from their cooling systems that run around the clock to keep the temperature down. The noise can also come from the facilities’ backup generators, which are usually diesel.
And because companies are looking to power their data centers themselves —- in some cases through natural gas powered plants —- air pollution is emerging as another risk associated with data centers. Such power plants typically emit a combination of air pollutants that can have serious environmental and health impacts.
What don’t we know?
The developers have not released much information on their projects and neither Fundamental Data and Fidelis New Energy responded to questions about their proposals.
Adam Victor, president and CEO of TransGas, said that during a previous project where the company built a major facility in an urban location, they took “noise, light and pollution issues very seriously and maintained the strong support of the local community” for the almost two decades the facility operated.
In Tucker County, residents have complained about the lack of information and transparency around the proposed project in addition to their concerns about the potential environmental and public health impacts.
It’s also not exactly clear when and how the Power Generation and Consumption Act will impact the project proposed for their community.
And during a public hearing last month DEP staff told residents that they could only speak to what was in the company’s permit application. Fundamental Data’s air permit application has become another sticking point for the community because it was heavily redacted.
Country Roads News, which is a newsletter and website covering the Canaan Valley, Davis and Thomas communities, has extensively covered the Tucker County project, including updates as it continues to unfold.
There are also questions about where the company will get the water needed to cool down the facility. The source of water is also something that is not clear about the various other proposed data center projects.
And while most of the projects have indicated the size of their projects in acreage, it’s not clear how many data centers the sites intend to house.
Reach reporter Sarah Elbeshbishi at sarah@mountainstatespotlight.org
