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Can We Afford to Pass on Data Centers?

Talk of data centers has become commonplace in West Virginia. These facilities are seen by many as part of the state’s future. They may not create large numbers of jobs, but they promise significant tax revenues. The potential seemed promising enough that lawmakers in Charleston passed legislation last session to make sure state coffers shared in any windfall, rather than letting all the tax dollars remain at the county level. For all the anticipation, though, West Virginia has yet to secure a deal.

That said, two projects are very much in play: one in Tucker County and another in Mingo County. These proposals are framed as economic opportunities, but they have stirred up anything but enthusiasm among many residents. Instead of embracing the promise of new tax dollars and growth, some locals have voiced strong resistance.

A recent piece by West Virginia Watch reporter Caity Coyne captured the mood in Mingo County, where residents crowded into a public hearing to oppose two natural gas power plants proposed by TransGas. The facilities, planned for Wharncliffe and the Mingo-Logan county line, would each operate as microgrids to power data centers. Each site would rely on more than 100 methane-fueled engines with diesel backup, pumping hundreds of tons of pollutants – carbon monoxide, nitrogen oxides, fine particulates – into the air every year.

Many residents fear these projects would bring more risk than reward. They worry about health problems, constant noise, light pollution, and long-term damage to a region already struggling to recover. And beyond the environmental risks, people expressed anger over the process. To many, it felt as if the projects were imposed without meaningful local input. “We were here first,” one resident told regulators, capturing the frustration in the room.

State officials at the hearing offered little comfort. Regulators with the Division of Air Quality explained their hands are tied. As long as the applications meet federal and state air-quality standards, permits are likely to be approved. Noise, light, or community impact aren’t factors DEP can weigh. And public opposition, no matter how overwhelming, is not enough under the law to stop approval. Out of dozens who spoke that night, nearly all opposed the plants. The only voice in favor came from someone with a financial stake in the land.

These concerns shouldn’t be dismissed lightly. They reflect the lived experience of people who have borne the costs of resource extraction for generations – good or bad. But there is another reality, one just as pressing, that deserves a place in the conversation.

Mingo County is economically challenged – painfully so. By almost any measure, it has been left behind in West Virginia’s broader economy. That fact alone isn’t a moral failing. The county’s decline is tied directly to coal’s collapse and the challenges of transitioning to a new economy. But at some point, the math becomes hard to ignore.

According to federal data, West Virginia’s gross domestic product in 2023 was nearly $81 billion. Mingo County generated just $546 million of that, less than one percent – placing it 36th out of 55 counties. Tucker County, with $319 million, ranked 42nd. Meanwhile, Kanawha County alone produced more than $11 billion, about 14 percent of the state’s entire GDP. The top seven counties – Kanawha, Monongalia, Cabell, Harrison, Berkeley, Ohio, and Wood – together generated half of West Virginia’s economic output. Yes, seven counties of 55 generated half the state’s economic output. Staggering.

The numbers tell a blunt story. Neither Mingo nor Tucker is carrying its fair share of producing the state’s economic output. That is not said to cast blame, and other counties are in worse shape. These counties have endured tough circumstances outside their control. But it raises a hard question: given this disparity, can counties like Mingo and Tucker afford to be so selective about new development?

Click to Review: WV Real GDP_2023

If residents succeed in stopping these projects, that choice comes with consequences. It is not simply a matter of saying “no” to unwanted facilities. It also means remaining dependent on resources and efforts generated elsewhere in the state. And if those resources continue to flow disproportionately from Kanawha, Monongalia, or Berkeley, is it fair to expect those counties to subsidize the ones turning away opportunities?

This is not a question this commentary can answer as much as ask. But it is one that West Virginians should confront honestly. Local fears are legitimate. Economic disparities are real. At some point, though, the state must reconcile the two: how to balance community concerns with the hard reality of uneven economic productivity. That balance will shape not just Mingo or Tucker counties, but the future of West Virginia as a whole.

 

Editor’s Note: Final passage of HB 2014 allocated tax monies from data centers in the following fashion. Click to read more. GDP numbers may be subject to modification in later reporting periods.

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.





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