POINT PLEASANT, W.Va. — Gov. Patrick Morrisey said West Virginia is ready to win in the competition for large energy-using data centers with a pair of new laws.
Morrisey signed the microgrids and one-stop shop permitting process bills into law Wednesday morning in Point Pleasant.
“The speed to build–it’s critical,” Morrisey said to a large crowd gathered at the National Guard Readiness Center.
The new law (HB 2014) lays out a Certified Microgrid Program and a High Impact Data Center Program for West Virginia, aiming to attract and support these industries.
Morrisey and his administration have touted the bill’s focus on data centers, the physical facilities that house computer structures like servers and storage.
Data centers are enormous energy users, and that is only expected to grow as artificial intelligence and other computing innovations gain traction. Microgrids will power the data centers.
The second bill Morrisey signed, HB 2002, creates a Permitting Dashboard to operate as a “one-stop-shop” for developers obtaining and renewing qualifying business permits.
Morrisey said the new laws send a message to developers of data centers.
“Come to the Commerce Department, work with out data economy liaison, do some amazing things, come work with out one-stop permitting process and move faster,” Morrisey said.
Morrisey told MetroNews Midday the microgrids bill was “the single biggest economic development bill in many, many years.”
Fidelis ready
Fidelis is planning to build Monarch AI Data Center Campus on 2,000 acres near Point Pleasant. Company COO and President Bengt Jarlsjo praised the new law at Wednesday’s bill signing.
“What this bill does cannot be (overstated),” Jarlsjo said. “It is a transformative change. There’s nothing like this in this region of the country.”
Jarlsjo hopes its project is a $100 billion boost to the area’s economy. He said the project will take about 5 to 8 years to complete.
Morrisey said he was approached to call state lawmakers into special session right after taking office to do a Fidelis specific bill but he said he thought it would be best to come up with a more comprehensive bill to draw more than just one data center.
“That was not an easy call when I had to call up and say we’re not doing company-specific fixes. We’re doing broad-based changes to lead to bigger wealth for our state,” Morrisey said. “That’s the approach. That’s a new West Virginia.”
The new law has the following tax revenue breakdown:
50% for a personal income tax reduction fund;
30% to the county or counties where the data center is located;
10% to go to all counties on a per capita basis;
5% to be used for an economic enhancement grant fund; and
5% for an electric credit stabilization and security fund.
Some county leaders have expressed concern about the breakdown. Morrisey said Wednesday counties would be taken care of. He also said the revenue from data centers can further lower the state’s personal income tax.
“If revenue comes in, even at a conservative estimate, we have an ability to lop off a large percentage of our state’s income tax,” Morrisey said.
Lawmakers reax
A number of state lawmakers were on hand for Wednesday’s bill signing.
Sen. Glenn Jeffries, R-Putnam, said this is the start of something big.
“We see with this piece of legislation the opportunity for large economic development up and down the Ohio River, starting off, let me say, starting off with Fidelis,” Jeffries said.
Mason County Delegate Jim Butler said you can retain and recruit people to West Virginia with projects like these.
“It’s great to know that Fidelis coming here and all of the other opportunities there will be a place for our young people to come here to live and work and raise a family,” Butler said.