Crunch Time on Data Centers
Much has happened since we discussed data centers in this space a few months ago. Let’s revisit the question.
This issue has exploded nationwide. Many citizens from a broad philosophical spectrum have voiced intense objections to locating data centers anywhere near them.
Politicians, liberal and conservative, Democrat and Republican (and a few high profile Independents) have picked up on the anger and outrage from the public. Few officeholders saw this coming a year ago. Those who had not spoken out before are now advocating strict controls on data centers. Some who had originally trumpeted their support for data centers are trying to find ways to credibly say “I didn’t really mean that” about previous comments.
Two governors of states bordering West Virginia have spoken forcefully against data centers in recent weeks. Josh Shapiro of Pennsylvania wants a statewide moratorium. Andy Beshear of Kentucky wants data centers completely banned in any of that state’s 102 counties that want them kept out. By contrast, Texas Governor Greg Abbott said less than a year ago that Texas was going to be the “Saudi Arabia of data centers.” He now says they’re really bad for his state. I’m still pondering the logic of that term “Saudi Arabia of data centers.”
These are just three examples of politicians who either enthusiastically propounded the value of data centers or said little about them that are now saying they need serious controls.
But West Virginia Governor Patrick Morrisey is doubling down on his wholehearted support for data centers. In a press conference a couple of weeks ago, he said there would be no changes in the law (HB 2014) passed by the Legislature in 2025, despite loud calls for changes in the law from all over the state. HB 2014 totally exempted data centers from any ordinances passed by counties or municipalities and also pilfered about two thirds of local property tax revenue, funneling it to state government.
Keep in mind that any other type of new business coming to our state must conform to local ordinances. This includes zoning and any other types of regulations on development. Keep in mind also that all property tax revenue, other than that from data centers, goes to fund local governments and schools. The property tax is how school boards and city, town and county governments get the money to fund not just schools, but law enforcement, fire protection, libraries, parks and other local necessities. Our public schools are underfunded, and both Berkeley and Jefferson counties could use a few more deputy sheriffs.
Data centers are permitted to discount their personal property at “salvage value.” We’ve allowed this periodically for industries seen as struggling. Are data centers “struggling?’
The governor said at his press conference that he would persuade data centers to listen to local concerns. Some may, but I doubt all will do so.
Governor Morrisey says he’ll appoint a citizens’ commission to work with data center development, to advise data centers about public concerns. I’m sure the appointees will do their best to mitigate the problems with data centers. While nearby states realize that they need stronger laws than they have, West Virginia’s data center law is the weakest in the country.
Will members of the citizens’ commission be required to sign Non-Disclosure Agreements (NDAs) as some elected officials have done?
An argument for data centers is that West Virginia needs jobs. Indeed so, but the data center industry creates very few permanent jobs. That industry does create large numbers of construction jobs, as does the home building industry. But construction jobs are temporary, and you cannot build a long-term economy purely on temporary employment.
Another weakness of HB 2014 is that it doesn’t sufficiently address the question of water use by data centers. This year the Legislature slightly tightened the environmental rules governing data centers. But those rules still don’t go far enough. A major problem with how data centers affect the environment is that the West Virginia Department of Environmental Protection (WVDEP) is seriously understaffed.
Some people with whom I’ve talked want a wholesale ban on data centers. I think that goes too far. But surely data centers should be required to follow the same state and local rules that any other new business starting up in West Virginia must follow. And this industry, like coal, probably needs more stringent regulation than most industries.
Less than two months from now we’ll elect the entire 100-member State House of Delegates and half of the 34-member State Senate. Will enough of the winners, be they re-elected incumbents or successful challengers, smell the coffee the public is attempting to serve them?
This article was published in the Martinsburg Journal, September 8, 2026
