How many data centers will set up shop in West Virginia, and who will have say-so in that development?
Data centers are 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.
West Virginia’s data economy office director says interest in the state is going to be high, although what that specifically means is still taking shape. West Virginia doesn’t have to say yes to every proposal, he said.
“I think we’ll get a lot,” said Chris Morris, state government’s point man on data center development.
“And I don’t know what that means, but I think it’s there’s substantial interest. And again, I think there’s substantial interest from legitimate companies — and I think there’s substantial interest from other people who will have a hard time getting their approval.”
As more and more data centers are proposed across West Virginia, Morris and additional panelists discussed what that will mean during a discussion hosted by The Stubblefield Institute for Civil Political Communications at Shepherd University.”
The event called “Data Centers in our Backyard – Jobs, Infrastructure & Community Impact” repeatedly focused on themes of the need for local control, transparency and community participation. The discussion was streamed on MetroNews Television and broadcast on local radio.
The lens of the discussion was House Bill 2014, the Power Generation and Consumption Act, passed by legislators last year and signed into law. The bill aims to attract high-tech companies by allowing them to harness their own power supplies and allowing them to bypass traditional local regulations.
The state’s designation is called a High Impact Data Center.
“We don’t hand out HIDC designations like candy. So when someone applies for this designation, they’re going to have to pass muster with these things or they’re not going to get their designation and they’re not going to move forward,” Morris said.
“I would rather have seven projects statewide that are successful and that are certified, and then five of them are successful — than go out to every company or every individual that applies and approve 100 and fail 95% of the time and have everybody up in arms about projects that we probably thought weren’t going to be successful in the first place.”
Even as the bill was passing, some officials expressed concern that the state framework is too limiting for local governments.
Local governments are generally prohibited from placing limits any certified microgrid district or certified high impact data center project — like zoning, horticultural, noise, viewshed, lighting, development, or land use restrictions.
In other states, some local governments have placed limitations on data centers because of factors like noise. Data centers are prolific in states like neighboring Virginia, but they are also controversial among residents because of their aesthetics. They are not major employers but can contribute significantly to local property taxes.
“I think that if we are targeting this industry as a state, it makes sense to develop standards from a statewide perspective and that is part of what I’m trying to do,” Morris said.
Jefferson County Commissioner Cara Keys repeatedly countered that local control is important — yet absent from the way West Virginia has structured its approach to data centers.
“My philosophy is two things can be true: You can support data centers, and you can be against the guardrails lacking in HB 2014,” Keys said.
She continued by saying This bill allowed Charleston to supersede local control. Everything we had in place is thrown out the window.”
Keys made reference to her professional background as a commercial real estate appraiser, with experience in zoning and land use issues. She also said leaders in the Republican-dominated state should embrace the value of local control.
“I think West Virginia has a history of making itself a future victim with poor planning,” Keys said.
A Tucker County data center project, known as the Ridgeline Facility, is a big and controversial development proposed by Virginia-based Fundamental Data LLC between the towns of Thomas and Davis. It would feature a large-scale data center powered by an on-site, off-the-grid natural gas power plant.
Tucker United executive director Amy Margolies also spoke in favor of restoring and strengthening local control, especially in terms of transparency.
“All we’ve been asking for is a seat at the table,” Margolies said, but she described Tucker County’s experience as being just about the opposite of local control.
Margulies contended that West Virginia’s current approach leaves communities like Tucker County shut out of decisions on big projects that result in public costs.
“If a community says they don’t want it, then fantastic if there are companies that are willing to listen to that. But if they’re not listening, who’s going to represent the people of West Virginia when they say they don’t want it?” she said.
A different company, QTS, is developing an enormous data center campus on a 300-acre site spanning Jefferson and Berkeley counties.
Dado Slezak, QTS executive vice president of utility innovation, said that company’s approach is to get to know communities and make sure projects are wanted, with a heavy emphasis on listening first, then sharing facts and tailoring projects to local concerns.
““We want to go where people want us, and we don’t know where they want us unless we show up and we listen. We go for lunches, we have people tour our facilities, listen to what’s bothering you, what would you like to have more or less of, and we try to react and find whether there is an opportunity for us to work together,” Slezak said.
Data centers often look like warehouses, but Slezak emphasized that QTS facilities look like office buildings rather than sites for heavy industry. “There are beautiful buildings. You wouldn’t know you’re in a data center,” he said.
Slezak emphasized local labor and suppliers: “There are quite a few jobs that get created. So you need again community where you can develop that workforce, help train them, some universities nearby to create the industry that historically didn’t exist in that town.”
One of those local residents, Slezak said, is likely to be him.
“So you will see us very much front and center, mingling around the city. Most likely, I’ll be moving out here. I was moved once before,” he said, “and I will be moving out here along with with local people because we do hire up front. We hire local people to help us understand the community.”