Why West Virginia?
According to the West Virginia Department of Economic Development( WVDED), data centers are a rapid-growth sector of the U. S. economy that play a vital role in national security and global competitiveness. Still, their development faces many challenges, including high energy demands, grid connection delays, access to skilled labor and access to reliable water resources.
The Mountain State offers solutions to many of these issues. As one of the most strategic and resource-rich locations in the country, West Virginia offers a prime location with its proximity to Washington, D. C., and various major federal institutions as well as being within a day’ s drive of half of the U. S. population. The state also offers abundant and affordable energy as a top producer of both coal and natural gas; a world-class workforce that boasts a low turnover rate; more than 32,000 miles of rivers and streams; and a pro-business climate.
State leadership is also committed to digital infrastructure development in the form of microgrids: localized energy systems that can operate independently from or in conjunction with a main power grid. Microgrids provide autonomy as well as more resilience and sustainability for data centers, allowing for greater control over energy usage and potentially lower costs. West Virginia has promised to provide practical, pro-business solutions for responsible data center growth, including no caps on microgrids or their energy generation, allowing excess microgrid electricity to be sold on the wholesale market and a full review of the tax code to remain competitive.
“ Companies are showing enthusiasm for housing their data in West Virginia.”
Proactive and Policy-Driven
While the specifics are still under wraps, West Virginia currently has 55 active data center projects.
“ We’ re going to run out of power and sites before we run out of projects,” says Mike Graney, former executive director of the WVDED.
Companies are showing enthusiasm for housing their data in West Virginia due, in part, to specific legislation passed during the 2025 session.
House Bill 2014, also known as the Power Generation and Consumption Act, established the Certified Microgrid Program and the High Impact Data Center Program, removing many common regulatory barriers for microgrids and including many perks such as the ability to sell surplus energy.
“ The microgrid legislation is another enhancement to our offering for what those data centers might be able to take advantage of when they come to our state,” Graney says.“ We have tools that make us a better place to locate than other states, including a sales tax exemption on the construction of a building that would house a data center and a salvage valuation on the personal property that would be in that data center. So, think of all the servers and racks that would be placed there. They have a 5 % salvage value, and those things need to be replaced every three to four years. That salvage valuation continues to go forward for a long time.”
Data centers require robust security to protect against cyber threats and physical access. This need for security is another reason the microgrid legislation is so beneficial.
“ Data centers control a lot of sensitive data,” says Deputy Secretary of Commerce Nicholas Preservati.“ They want
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