West Virginia Passes Law to Attract Data Centers, Advance Energy Infrastructure

April 14, 2025 — The West Virginia Senate on Friday advanced legislation aimed at boosting the state’s role in data center development and energy innovation, approving House Bill 2014 in a 32-1 vote. It now heads to the governor’s desk.

Backed by Gov. Patrick Morrisey (R), the Power Generation and Consumption Act establishes programs to attract high-impact industrial projects and create designated microgrid districts. The bill exempts eligible projects from certain regulatory and zoning requirements and offers a new property tax structure for data centers.

“This is the economic development bill of the session,” Morrisey said in a statement Saturday. “It will dramatically increase West Virginia’s ability to play a major role in data economic development projects, improve our standard of living, and help reduce our income tax… West Virginia is now in a class of its own to attract new data centers and information technology companies.”

Microgrid districts would serve data centers that consume at least 70% of locally generated electricity. Within those zones, counties and cities would be barred from imposing zoning or permitting restrictions. However, participating companies must negotiate with local utilities in good faith for 120 days before proceeding.

An amendment from Sen. Brian Helton, R-Fayette, revised the distribution of property tax revenues. Half would go to the state’s personal income tax reduction fund, 40% to the host county, and the remaining 10% split among other counties, low-income energy aid, and a new electric grid stabilization fund.

The bill also bars regulated utilities from passing costs related to microgrid districts onto other customers.

“This is about more than economic zones—it’s about powering the future,” said Sen. Ben Queen, R-Harrison. “If you want to build energy, build here.”