Mason County
For Mason County, see West Virginia’s statewide laws and regulations below. No additional county-specific measures are listed in our research.
Strongly Pro-Data Center Policies
West Virginia protects certified, qualifying data centers—generally those meeting a 90-megawatt threshold—from many local zoning and permitting rules, while offering state development help. They remain subject to state building codes, taxes, and applicable fees.
Incentives
Fee waiversInfrastructure funding3
Authorizes discretionary state infrastructure assistance for certified data centers and microgrid districts, including developing or improving highways, roads, thoroughfares, and sidewalks. No fixed award or appropriation is specified. The current codified section also prohibits charging both county and municipal fire-protection fees; this is a limited duplicate-service-fee exemption, not a waiver of all service fees.
Authorizes discretionary state infrastructure assistance for certified data centers and microgrid districts, including developing or improving highways, roads, thoroughfares, and sidewalks. No fixed award or appropriation is specified. The current codified section also prohibits charging both county and municipal fire-protection fees; this is a limited duplicate-service-fee exemption, not a waiver of all service fees.
Authorizes discretionary state infrastructure assistance for certified data centers and microgrid districts, including developing or improving highways, roads, thoroughfares, and sidewalks. No fixed award or appropriation is specified. The current codified section also prohibits charging both county and municipal fire-protection fees; this is a limited duplicate-service-fee exemption, not a waiver of all service fees.
Fee waivers
Creates targeted fire-service fee relief for certified microgrid districts and high-impact data centers by prohibiting a requirement to pay both county and municipal fire-protection fees. This is protection against duplicate service charges, not a blanket fee exemption.
Infrastructure funding
Authorizes discretionary state infrastructure assistance for certified data centers and microgrid districts, including developing or improving highways, roads, thoroughfares, and sidewalks. No fixed award or appropriation is specified.
current law · StatewideEstablishes a special property-tax valuation and distribution framework for high impact data centers with at least 90 megawatts of critical IT load placed into service on or after July 1, 2025, including related data center and microgrid generator property.West Virginia Code §11-6N
What this means
The measure gives certified high-impact data centers major protection from local barriers: counties and cities cannot apply zoning, building-permit, or similar local rules to them (local restrictions listed here). The state also provides a dedicated contact to help coordinate and speed development; although tax-reporting rules still apply, the overall effect strongly favors building and expansion.
People behind it
- Delegate Hanshaw (Mr. Speaker)
Named sponsor of Committee Substitute for House Bill 2014.
- Delegate Riley
Named sponsor of Committee Substitute for House Bill 2014.
- Delegate Fehrenbacher
Named sponsor of Committee Substitute for House Bill 2014.
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- Delegate Anderson
Named sponsor of Committee Substitute for House Bill 2014.
- Delegate Zatezalo
Named sponsor of Committee Substitute for House Bill 2014.
- Delegate Akers
Named sponsor of Committee Substitute for House Bill 2014.
- Delegate Hornbuckle
Named sponsor of Committee Substitute for House Bill 2014.
- the Executive
Identified as the requesting party for Committee Substitute for House Bill 2014.
- Division of Economic Development
Administers the High Impact Data Center Program and the Certified Microgrid Development Program.
- Secretary of the Department of Commerce
Certifies microgrid districts and high impact data centers.
- Department of Commerce
Assists certified projects, designates the Data Economy Liaison, administers the Electric Grid Stabilization and Security Fund, and may promulgate rules.
- State Auditor
Maintains project-specific tax-distribution accounts and calculates and distributes ad valorem tax revenues.
- Board of Public Works
Receives annual property returns from high impact data centers and microgrid power generators.
- Water Development Authority
Administers the Economic Enhancement Grant Fund receiving a share of high impact data center tax increments.
- Secretary of Revenue
Certifies and transfers amounts from the Personal Income Tax Reduction Fund to the General Revenue Fund.
- West Virginia Board of Treasury Investments
Manages and invests money from the Personal Income Tax Reduction Fund.
- West Virginia Investment Management Board
Manages and invests money from the Personal Income Tax Reduction Fund.
Restrictions & requirementsHide restrictions & requirements13
A data center that meets the high-impact definition must notify the Division of Economic Development within 30 days after determining that it qualifies, or when it reasonably anticipates qualifying in the future.
A certified high-impact data center’s owner or operator must file a sworn annual property return with the Board of Public Works by May 1, covering the preceding calendar year and providing information needed to determine the property’s value.
High-impact data center property and related leasehold or other property interests may not receive a payment in lieu of taxes.
No tax increment financing project, plan, or arrangement may be entered into or undertaken for high-impact data center property.
Certified high-impact data centers must pay ad valorem real and personal property taxes at the same millage rates as other businesses in the county and municipality.
Certified high-impact data centers must pay applicable municipal service fees and utility rates, fees, and charges for services such as water, sewer, stormwater, garbage, and recycling; capacity or impact fees may also apply when the utility must make capital improvements to serve the project.
Certified high-impact data centers must design, acquire, construct, and equip their facilities in accordance with the State Building Code.
A microgrid customer seeking a special utility contract must first negotiate with the applicable electric utility for up to 120 days; if negotiations fail, the customer may petition the Public Service Commission, which must establish the special contract within 90 days.
A plant or facility using the microgrid program must constitute new electric load. It generally must not have previously received service from a regulated West Virginia utility unless it is making a capital investment in a new facility, and a new investment may not reduce the load of an existing in-state facility.
Electricity generated within a certified microgrid district may be used only within the district or delivered to the wholesale market, and no more than 10 percent may be delivered outside the district to the wholesale market.
Electricity generation, transmission, and distribution costs associated with serving a microgrid district must be borne by the generator or consumers within the district rather than by regulated utility customers outside the district.
A microgrid district may not exceed 2,250 acres and must be nearly contiguous; certification also requires, among other things, that the district attract at least two businesses and demonstrate a significant positive economic impact on West Virginia.
The high-impact data center tax provisions sunset and cease to have effect on or after December 31, 2055.
Benefits & exceptionsHide benefits & exceptions12
The High Impact Data Center Program provides a streamlined certification process: qualifying facilities must have at least 90 megawatts of critical IT load and be placed into service on or after July 1, 2025, and the Secretary of Commerce must issue certification confirmation within 14 days after receiving the required notification. 90 megawatts total or higher within 14 days
The Department of Commerce must assist certified high impact data centers with development and operation and designate a Data Economy Liaison as a single point of contact to coordinate and expedite site selection and permitting. coordinate and expedite their development and operation
Counties and municipalities are barred from adopting or enforcing ordinances, regulations, or rules that limit the creation, acquisition, construction, equipping, development, expansion, or operation of a certified high impact data center. limit, in any way
Certified high impact data centers are exempt from county and municipal zoning, land-use, noise, lighting, viewshed, development, building-permitting, inspection, code-enforcement, and licensing requirements, and generally cannot be subjected to local approval or consent requirements. may not be subject to
The Department of Commerce, Department of Environmental Protection, and Department of Transportation may support certified projects by developing or improving highways, roads, thoroughfares, and sidewalks in the counties or municipalities where they are located. development or improvement of such highways, roads, thoroughfares, and sidewalks
A certified microgrid district may provide electricity to businesses located in the district without being subject to Public Service Commission jurisdiction over rates, certificates of convenience and necessity, conditions of service, or complaints, and may avoid ordinary net-metering and interconnection standards. The provider may also qualify as an exempt wholesale generator under federal law. not be subject to the jurisdiction of the Public Service Commission
Eligible facilities in a certified microgrid district may receive special utility contracts and rates, including backup and supplemental service. After up to 120 days of negotiations, the customer may petition the Public Service Commission, which must establish the special contract within 90 days. shall establish a special contract
A facility locating in a certified microgrid district qualifies as eligible new electric load if it has not previously received service from an in-state regulated utility or is making a capital investment in a new facility. Using a public utility for initial construction does not eliminate new-load eligibility. initial construction and development
Regulated utility customers cannot be charged for generation, transmission, or distribution facilities serving a certified microgrid district; those costs must be borne by the generator or consumers within the district. The district may deliver no more than 10 percent of generated electricity outside the district, and only to the wholesale market. shall not bear any costs
For utilities serving certified projects, service rates, fees, and charges must be based on the cost of providing the service; capacity or impact fees are limited to capital additions needed to serve the project; and customers outside the project cannot bear construction or operating costs for utility property built solely to serve it. based on the cost of providing such service
Business information identified as confidential by a data center is exempt from the Freedom of Information Act, and the Secretary of Commerce must take reasonable steps to protect it. exempt from the Freedom of Information Act
When a certified high impact data center produces a positive tax increment, 30 percent of the increment is distributed to the situs county, 10 percent to all counties on a per-capita basis, 5 percent to the Economic Enhancement Grant Fund, and 5 percent to the Electric Grid Stabilization and Security Fund; the remaining 50 percent goes to the Personal Income Tax Reduction Fund. 50 percent of the increment
Sources
current law · StatewideThis statute creates the Certified Microgrid Development Program, which can support microgrid districts supplying power to certified high-impact data centers in McDowell County.West Virginia Code § 5B-2-21 (2025)
What this means
For qualifying large data centers, the measure blocks some local rules that could limit where or how they operate and provides state help with site selection and permits. It also makes it easier to power centers through qualifying microgrids; the state filing requirements and limits on some tax deals for related power facilities are smaller drawbacks.
People behind it
- Delegate Mike Hanshaw
Lead sponsor of House Bill 2014 and Speaker of the House of Delegates.
- Delegate Riley
Bill sponsor.
- Delegate Fehrenbacher
Bill sponsor.
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- Delegate Anderson
Bill sponsor.
- Delegate Zatezalo
Bill sponsor.
- Delegate Akers
Bill sponsor.
- Delegate Hornbuckle
Bill sponsor.
- Governor
Requested the bill.
- Division of Economic Development
Administers the Certified Microgrid Development Program and High Impact Data Center Program and may propose implementing rules.
- Secretary of the Department of Commerce
Certifies microgrid districts and high impact data centers and designates a Data Economy Liaison.
- Department of Commerce
Assists certified microgrid districts and high impact data centers and administers the Electric Grid Stabilization and Security Fund.
- Public Service Commission
Approves or establishes special contracts and rates and performs electric-utility oversight and rulemaking duties.
- Board of Public Works
Prescribes property-return forms and receives returns from high impact data centers and microgrid power generators.
- State Auditor
Maintains project-specific tax-distribution accounts, calculates distributions, and distributes high impact data center tax revenues.
- Secretary of Revenue
Certifies Personal Income Tax Reduction Fund proceeds and transfers certified amounts to the General Revenue Fund.
- West Virginia Board of Treasury Investments
May manage and invest money in the Personal Income Tax Reduction Fund.
- West Virginia Investment Management Board
May manage and invest money in the Personal Income Tax Reduction Fund.
- Department of Environmental Protection
May take actions necessary to support development of certified microgrid districts and data centers.
- Department of Transportation
May take actions necessary to support development of certified microgrid districts and data centers, including highway and road improvements.
Restrictions & requirementsHide restrictions & requirements17
A data center using the Certified Microgrid Program must obtain state certification and satisfy the program’s application, technical, ownership, and operating requirements before using the microgrid.
Microgrid certification requires a finding of significant positive economic impact and that certification is necessary to attract at least two businesses.
The Secretary of Commerce generally may certify no more than two microgrid districts, except when more than 70% of a district’s electricity is or will be consumed by one or more high-impact data centers after completion and full operation.
A microgrid district may cover no more than 2,250 acres and must be nearly contiguous.
A microgrid district must attract at least two businesses, and no more than 10% of its generated electricity may be delivered outside the district; any outside delivery must be to the wholesale market.
A data center using a microgrid must constitute new electric load; the investment may not be accompanied by a reduction in the load of an existing facility outside the district.
Electric service in the district may not be used to encourage businesses already receiving service from a regulated West Virginia utility to relocate into the district.
Before seeking district certification, an applicant generally must make and document good-faith efforts to negotiate electricity supply with the local distribution utility for at least 120 days. This does not apply to a district proposing at least 300 megawatts of generation or no connection to the local utility after construction.
A microgrid customer seeking a special utility contract must negotiate for up to 120 days before petitioning the Public Service Commission; if negotiations fail, the commission must establish the contract within 90 days. Load not covered by a backup or supplemental-service contract is treated as non-firm and interruptible.
Certified microgrids must meet specified generation, reliability, interconnection, metering, and operating standards and remain compliant while operating; noncompliance can jeopardize certification and related tax benefits.
Projects using a certified microgrid remain subject to applicable Public Service Commission review and utility-interconnection requirements, including requirements concerning service, rates, and related facilities.
Interconnection, generation, transmission, distribution, grid-related, energy-related, capacity-related, and other facilities costs serving the district may not be charged to regulated utility customers outside the district and must instead be paid by the generator or electricity consumers within the district.
A data center that meets or anticipates meeting the high-impact definition must notify the Division of Economic Development within 30 days after determining or reasonably anticipating that it qualifies, including information about the definition’s elements and actual or expected power consumption.
Owners or operators of high-impact data center property must file a signed and sworn property return with the Board of Public Works by May 1 each year for the preceding calendar year.
Certified high-impact data centers and their owners, tenants, lessees, or licensees must pay applicable business and occupation taxes, municipal sales and use taxes, ordinary ad valorem property taxes, municipal service fees, utility charges, and certain capacity or impact fees.
Certified high-impact data centers may not use payment-in-lieu-of-tax arrangements or tax-increment-financing projects for property subject to the measure’s special tax-distribution rules.
A certified high-impact data center must be designed, acquired, constructed, and equipped under the State Building Code and the corresponding state rule.
Benefits & exceptionsHide benefits & exceptions22
Creates a High Impact Data Center Program to support the development, construction, operation, maintenance, and expansion of qualifying high impact data centers.
Requires the Secretary of Commerce to certify a qualifying high impact data center within 14 days after receiving its required notification.
Provides a property-tax credit for qualifying investment in certified-microgrid property, subject to eligibility, application, calculation, and recapture requirements.
Allows qualifying data centers to obtain state certification for on-site or interconnected microgrids that generate, store, and distribute electricity to the data center and other authorized users.
Allows a certified microgrid to provide electricity through its own private distribution system without being treated as a traditional public utility, subject to certification and operating requirements.
Exempts certified microgrid projects from specified Public Service Commission requirements and proceedings governing utility generation, transmission, distribution, rates, service conditions, certificates, and complaints.
Allows certified microgrids to own and operate generation, energy-storage, and related distribution facilities needed to supply their customers.
Allows a data center making a capital investment in a new or expanded facility within a certified microgrid district to receive district-generated electricity without connecting to or using a public electric utility; temporary construction service does not defeat eligibility.
Permits a high impact data center to locate in a certified microgrid district and receive electricity from on-site or district generation. The district may cover up to 2,250 nearly contiguous acres, and its electricity generally must be used within the district or sold to the wholesale market.
Permits electricity generators in certified microgrid districts to elect exempt-wholesale-generator status and avoid specified state siting-certificate requirements when supplying a utility or regional transmission organization.
Allows a microgrid customer to negotiate a special utility contract with rates and service terms different from the utility tariff. If negotiations fail within 120 days, the customer may petition the Public Service Commission, which must act within 90 days; the process can include backup and supplemental service, with uncovered load treated as non-firm and interruptible.
Provides a parallel special-contract process for a certified microgrid district, including backup and supplemental service and a Commission order within 90 days after a petition, provided the district gives the local utility reasonable access and connection terms.
Prevents regulated electric-utility customers from being charged for generation, transmission, distribution, grid, energy, capacity, operational, or ancillary-service costs associated with facilities serving a microgrid district; those costs must be paid by the generator or district consumers.
Preempts county and municipal regulation of certified high impact data centers and prohibits local governments from adopting rules limiting their creation, construction, development, expansion, or operation.
Exempts certified high impact data centers and certified microgrid districts from specified county and municipal zoning, noise, lighting, development, land-use, building-permitting, inspection, code-enforcement, and licensing requirements.
Allows a qualifying data center to use the State Building Code instead of local building-code permitting and enforcement, while still requiring design, construction, and equipment work to comply with the State Building Code.
Establishes a Data Economy Liaison as a single state point of contact to coordinate and expedite certified data center development and operation, including site selection and permitting.
Authorizes the Departments of Commerce, Environmental Protection, and Transportation to support certified data center projects, including developing or improving highways, roads, thoroughfares, and sidewalks serving them.
Creates an Electric Grid Stabilization and Security Fund that may support grid stabilization, security, generation maintenance and upgrades, and transmission resources serving West Virginia ratepayers; five percent of positive tax increments from high impact data centers is directed to the fund.
Supports continued electric-generating capacity by requiring utility capacity planning, coal-supply and plant-maintenance measures, and Public Service Commission approval before a generating plant or unit may be permanently closed.
Protects confidential business, financial, engineering, generation, load, utility, and customer information submitted for data center or microgrid certification from disclosure under the Freedom of Information Act or requires it to be held confidentially.
Preserves the certification and associated rights of certified microgrids unless statutory requirements are violated or the certification is otherwise revoked; districts certified on or before January 1, 2024, and special contracts approved on or before January 1, 2025, receive additional protection from specified 2025 amendments.
Sources
current law · StatewideAuthorizes the West Virginia Department of Commerce to promulgate 145 CSR 20, a legislative rule governing certification of a microgrid district or as a high-impact data center, after the rule was modified and refiled to address legislative objections.West Virginia HB 4983 (2026)
People behind it
- Delegate D. Smith
Sponsor of House Bill 4983.
- Department of Commerce
Agency authorized to promulgate the legislative rule concerning certification of a microgrid district or a high-impact data center.
- Department of Economic Development
Agency authorized to promulgate the legislative rule concerning Tourism Development Districts.
Restrictions & requirementsHide restrictions & requirements1
The Department of Commerce’s certification rule for a microgrid district or high-impact data center is authorized with an amendment adding “or access of water” to subsection 2.4., making water access an additional matter addressed by the certification rule.
Benefits & exceptionsHide benefits & exceptions1
Authorizes the Department of Commerce to promulgate a legislative rule establishing certification for a high-impact data center, including the related certification of a microgrid district. The authorization applies to the rule as modified by the Department and Legislative Rule-Making Review Committee, with an amendment adding “or access of water” to subsection 2.4.
Sources
current law · StatewideEstablishes uniform statewide regulation for certified microgrid districts and certified high impact data centers and requires the Department of Commerce to assist qualifying projects through a designated Data Economy Liaison who coordinates development, site selection, and permitting; the enacted section took effect July 11, 2025.West Virginia Code §5B-2-21b
What this means
For qualifying large data centers, the measure offers strong protection from local rules, including zoning and local building permits, inspections, and code enforcement (local restrictions listed here). It also creates a state program to support development, though eligibility is limited to centers with at least 90 megawatts of critical IT load that begin operating on or after July 1, 2025 (90 megawatts total or higher).
People behind it
- Delegate Hanshaw (Mr. Speaker)
Primary sponsor of House Bill 2014
- Delegate Riley
Co-sponsor of House Bill 2014
- Delegate Fehrenbacher
Co-sponsor of House Bill 2014
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- Delegate Anderson
Co-sponsor of House Bill 2014
- Delegate Zatezalo
Co-sponsor of House Bill 2014
- Delegate Akers
Co-sponsor of House Bill 2014
- Delegate Hornbuckle
Co-sponsor of House Bill 2014
- The Executive
Requested the bill
- Division of Economic Development
Administers the Certified Microgrid Development Program and High Impact Data Center Program
- Department of Commerce
Administers the Electric Grid Stabilization and Security Fund and assists certified microgrid districts and high impact data centers
- Secretary of the Department of Commerce
Certifies microgrid districts and high impact data centers
- Public Service Commission
Approves or establishes special contracts and rates and performs the bill's prescribed electric-utility regulatory duties
- State Auditor
Calculates and distributes property-tax revenue under the special high impact data center rules
- Board of Public Works
Receives annual property returns from high impact data centers and microgrid power generators
- Secretary of Revenue
Certifies and transfers amounts from the Personal Income Tax Reduction Fund
Restrictions & requirementsHide restrictions & requirements12
A data center that meets or expects to meet the high-impact definition must notify the Division of Economic Development within 30 days after determining that it qualifies, or when it reasonably anticipates qualifying in the future. The notification must include information about the facility's requirements, including known or expected power consumption.
A high-impact data center must be certified by the Secretary of Commerce, and eligibility requires a critical IT load of at least 90 megawatts in the aggregate and placement into service on or after July 1, 2025.
A microgrid serving a data center must satisfy certification conditions, including demonstrating significant positive economic impact, being necessary to attract at least two businesses, occupying no more than 2,250 acres in a nearly contiguous area, and using generated electricity within the district or delivering it to the wholesale market.
Before seeking certification for most microgrid districts, the applicant must make good-faith efforts for at least 120 days to negotiate with the local distribution utility for some or all of the project's electricity needs. This requirement does not apply to a microgrid proposing to produce at least 300 megawatts or one that will not connect to the local distribution utility after construction.
Electricity supplied within a certified microgrid generally must serve new electric load. A facility is ineligible if its new investment decreases the load of an existing facility outside the microgrid in West Virginia, and microgrid service may not be used to encourage an existing regulated-utility customer to relocate into the district.
A certified microgrid may deliver no more than 10 percent of its generated electricity outside the district, and that electricity may be delivered only to the wholesale market.
A microgrid customer seeking a special utility contract must negotiate with the local distribution utility for up to 120 days before petitioning the Public Service Commission. Load not covered by a backup or supplemental-service contract is treated as non-firm and interruptible.
Regulated utility customers outside a microgrid may not be charged for generation, transmission, distribution, grid-related, energy-related, ancillary-service, or capacity costs associated with facilities serving the microgrid. Those costs must be paid by the generator or electricity consumers within the microgrid.
Certified microgrids and high-impact data centers must pay applicable business and occupation taxes, municipal sales and use taxes, ad valorem real and personal property taxes, municipal service fees, and utility charges. They must also pay capacity or impact fees to the extent needed capital improvements are required to serve the project.
The measure prohibits new payments in lieu of taxes and tax-increment-financing projects involving property subject to the certified microgrid or high-impact data-center provisions.
Owners or operators of high-impact data-center property and microgrid power generators supplying such centers must file an annual property return with the Board of Public Works by May 1 covering the preceding calendar year.
Certified microgrids and high-impact data centers must be designed, constructed, and equipped under the State Building Code and applicable state building-code rules, even though county and municipal building permits and local code enforcement do not apply.
Benefits & exceptionsHide benefits & exceptions20
Creates a High Impact Data Center Program within the Division of Economic Development to support the development, construction, operation, maintenance, and expansion of qualifying data centers (High Impact Data Center Program).
Allows a data center to notify the Division of Economic Development when it meets, or expects to meet, the high-impact definition, and requires the Secretary of Commerce to issue certification confirmation within 14 days after receiving the notification (within 14 days). The center must have a critical IT load of at least 90 megawatts and be placed into service on or after July 1, 2025.
Protects confidential business information submitted by a data center from disclosure under the Freedom of Information Act (confidential business information).
Creates a Certified Microgrid Development Program through which the Secretary of Commerce may certify microgrid districts that will have a significant positive economic impact, are necessary to attract at least two businesses, are no larger than 2,250 acres, are nearly contiguous, and use generated electricity within the district or sell it to the wholesale market (no greater than 2,250 acres).
Permits electric generation and distribution within a certified microgrid district to operate outside Public Service Commission jurisdiction for rates, certificates of convenience and necessity, service conditions, and complaints, and exempts the facilities from state net-metering and interconnection standards (not be subject to the jurisdiction of the Public Service Commission).
Allows a microgrid power supplier to elect federal exempt-wholesale-generator status and avoid specified Public Service Commission siting-certificate requirements when supplying power to a utility or regional transmission organization (exempt wholesale generator).
Allows certified microgrids to provide electricity to businesses making a capital investment in a new or expanded facility, while limiting outside delivery to no more than 10 percent of electricity generated and only to the wholesale market (not deliver outside the microgrid district more than 10%).
Treats qualifying data centers and other facilities as eligible new electric load if they have not previously received in-state regulated utility service or are making a capital investment in a new facility; they generally need not connect to or use a public electric utility, and temporary utility service for construction does not disqualify them (not required to connect with and use any public electric utility).
Allows microgrid customers to negotiate special utility contracts, including rates and backup or supplemental service; if negotiations fail after 120 days, the customer may petition the Public Service Commission, which must establish a contract within 90 days (negotiations result in an agreement).
Bars regulated utility customers outside a microgrid district from bearing costs associated with generation, transmission, or distribution facilities that provide service to the district; those costs must be paid by the generator or microgrid consumers (shall not bear any costs).
Requires the Department of Commerce to assist certified microgrid districts and high-impact data centers and to appoint a Data Economy Liaison as a single point of contact to coordinate and expedite development and operation, including site selection and permitting (single point-of-contact).
Prevents counties and municipalities from limiting certified microgrid districts or high-impact data centers through local ordinances, and exempts them from local zoning, land-use, noise, lighting, development, building-permit, inspection, code-enforcement, and licensing requirements (may not be subject to).
Removes the need for municipal consent or approval for specified state or county actions involving certified microgrid districts or high-impact data centers, including tax-increment-financing actions (formal consent of the governing body of a municipality).
Authorizes the Departments of Commerce, Environmental Protection, and Transportation to support certified projects, including developing or improving highways, roads, thoroughfares, and sidewalks serving project locations (development or improvement of such highways, roads, thoroughfares, and sidewalks).
Requires utilities serving certified projects to charge cost-based utility rates and limits capacity or impact fees to capital improvements actually needed to serve the project; utility customers outside the microgrid district may not bear construction or operating costs for new utility property built solely for the district (only be required to pay any capacity improvement fee or impact fee).
Creates the Electric Grid Stabilization and Security Fund, which may finance grid stabilization, efficiency and environmental upgrades, maintenance of utility-owned coal and natural-gas generation, and transmission resources serving West Virginia ratepayers (electric grid stabilization for regulated utilities and grid security).
Requires the Public Service Commission to require utilities to maintain thermal baseload generating units so they can achieve at least a 69 percent capacity factor when doing so does not increase charges above the established tariff (at least a sixty-nine percent capacity factor).
Requires each generating public utility to plan coal deliveries and use so that each coal-fired plant maintains an average annual minimum 30-day aggregate coal supply on site (average annual minimum 30-day aggregate coal supply).
Requires the Public Service Commission to require integrated resource plans to include plant upgrade and maintenance plans and analyses of extending generating-unit lives beyond planned retirement dates, supporting continued generation capacity for large electric customers (extend the life of each generating unit beyond their planned retirement date).
Prevents a public electric utility from retiring, abandoning, closing, or permanently disabling an electric generating plant or unit without prior Public Service Commission approval, and bars specified state funds and bonds from being used for such closure activities (may not retire, abandon, close).
Sources
current law · StatewideEstablishes the process for certifying West Virginia microgrid districts and High Impact Data Centers, under a rule filed and effective April 1, 2026, with termination scheduled for August 1, 2031.145 CSR 20, Rule to Petition the Department of Commerce for Certification of a Microgrid District or Certification as a High Impact Data Center
What this means
Certification can give qualifying large data centers meaningful protection from local restrictions, including local land-use rules and permitting. The benefit is limited to centers meeting the high-impact threshold and filing a petition and annual report; the rule also asks applicants to address potential impacts such as restricted access to water.
People behind it
- Delegate D. Smith
Named sponsor of House Bill 4983.
- Hanshaw (Mr. Speaker)
Listed sponsor of Committee Substitute for House Bill 2014.
- Riley
Listed sponsor of Committee Substitute for House Bill 2014.
Show 10 more peopleShow fewer people
- Fehrenbacher
Listed sponsor of Committee Substitute for House Bill 2014.
- Anderson
Listed sponsor of Committee Substitute for House Bill 2014.
- Zatezalo
Listed sponsor of Committee Substitute for House Bill 2014.
- Akers
Listed sponsor of Committee Substitute for House Bill 2014.
- Hornbuckle
Listed sponsor of Committee Substitute for House Bill 2014.
- The Executive
The 2025 bill was introduced by request of the Executive.
- West Virginia Department of Commerce
Administers the certified microgrid and high impact data center programs and promulgates the related legislative rule.
- Division of Economic Development
Administers the Certified Microgrid Development Program and High Impact Data Center Program within the Department of Commerce.
- Secretary of the Department of Commerce
Receives petitions and makes certification decisions for microgrid districts and high impact data centers.
- Garner Marks
Filed the legislative rule on behalf of the authorized agency.
Restrictions & requirementsHide restrictions & requirements17
A data center meeting the high-impact threshold—an aggregate critical IT load of at least 90 megawatts and placed into service on or after July 1, 2025—must be certified under the program. 90 megawatts total or higher
A high-impact data center must submit a certification petition within 30 days after learning that it meets, or will meet, the statutory definition, creating an additional state approval process. within thirty (30) days
The high-impact data center petition must contain specified economic, financial, engineering, location, power, milestone, proximity, and geological information and must comply with five-page, double-spacing, 12-point Times New Roman, justified-text, and one-inch-margin requirements. Sufficient economic, financial, and engineering information
The Secretary may require additional information or verification from the applicant or relevant utilities before deciding a high-impact data center petition, and the 14-day decision period is extended for the time needed to provide it. may request additional information
A certified high-impact data center must file an annual status report confirming that it continues to satisfy the high-impact definition. file an annual report
Certification does not exempt a high-impact data center from otherwise applicable state and federal environmental regulations. otherwise applicable state and federal environmental regulations
Certified high-impact data centers must be designed, acquired, constructed, and equipped under the State Building Code. pursuant to the State Building Code
Certified high-impact data centers must pay applicable business and occupation taxes, municipal sales and use taxes, ad valorem real and personal property taxes, municipal service fees, and utility charges. Pay business and occupation tax
A developer must pay utility capacity-improvement or impact fees to the extent the utility must make capital additions, betterments, or improvements to serve the project, and must pay utility rates and charges for water, sewer, stormwater, garbage, and related services. only be required to pay any capacity improvement fee or impact fee
A facility using a certified microgrid must qualify as new electric load; it cannot reduce the load of an existing facility outside the microgrid in connection with the new investment. must constitute new electric load
Electricity generated within a certified microgrid must be used inside the district, except that no more than 10 percent may be delivered outside the district and only to the wholesale market. Not deliver outside the microgrid district more than 10%
A microgrid operator may not solicit businesses already receiving electricity from a regulated West Virginia utility to relocate to the certified microgrid district. encouraging businesses already receiving electric service
Before seeking microgrid certification, the applicant generally must make good-faith efforts to negotiate for electricity from the local distribution utility at least 120 days in advance. The requirement does not apply to projects proposing at least 300 megawatts of generation or permanent disconnection from that utility. At least 120 days before submitting
A proposed microgrid district must be no larger than 2,250 acres of nearly contiguous property, and the petitioner must own and control the property subject to certification. shall not exceed 2,250 acres
A microgrid letter of intent must be filed before the petitioner applies for any state or federal permit associated with the microgrid project, creating a sequencing requirement before permitting can proceed. prior to Petitioner filing an application for any state or federal permit
The Secretary generally may certify no more than two microgrid districts, although that limit does not apply when more than 70 percent of the district's electricity is or will be consumed by high-impact data centers. may not certify more than two microgrid districts
A certified microgrid district must file annual reports stating the electricity supplied monthly to high-impact data centers, electricity sent outside the district to the wholesale market, and changes in tenants or customers. shall file an annual report
Benefits & exceptionsHide benefits & exceptions14
Certified high impact data centers may use an expedited certification process: the Secretary must decide a petition within 14 days, subject to extensions for requested information or the petitioner's request. within 14 days
Certified microgrid districts and certified high impact data centers are exempt from county and municipal zoning, land-use, noise, lighting, viewshed, development, building-permit, inspection, code-enforcement, and licensing requirements. may not be subject to
Counties and municipalities are barred from adopting or enforcing local laws that limit the creation, construction, acquisition, development, expansion, or operation of a certified microgrid district or certified high impact data center. prohibits
The Department of Commerce must assist certified projects and designate a Data Economy Liaison as a single point of contact to coordinate and expedite development and operation, including site selection and permitting. single point-of-contact
The Departments of Commerce, Environmental Protection, and Transportation may support certified projects by developing or improving highways, roads, thoroughfares, and sidewalks serving the project. development or improvement
A data center in a certified microgrid district may receive electricity from generation or distribution facilities inside the district without the provider being subject to Public Service Commission rate, certificate-of-convenience-and-necessity, service-condition, or complaint jurisdiction, and without ordinary net-metering and interconnection standards. not be subject to the jurisdiction
A microgrid customer is not required to connect to or use a public electric utility; use of a public utility during initial construction does not eliminate its status as new electric load. not required to connect
Certified microgrid customers may negotiate special electric-service contracts with the local utility, including backup and supplemental service; if negotiations fail, the Public Service Commission must establish a contract within 90 days. shall establish a special contract
Electricity used by a certified microgrid data center is treated as eligible new electric load if it comes from a customer that has not previously received service from a regulated utility in West Virginia or is associated with a new facility investment, subject to the condition that the investment does not reduce an existing out-of-district facility's load. eligible new electric load
Utility service charges for certified projects, including water, sewer, stormwater, and garbage services, must be based on the cost of providing the service; capacity or impact fees are limited to capital additions required to serve the project. based on the cost of providing such service
Customers outside a certified microgrid district may not be charged for construction or operating costs of generation, transmission, or distribution facilities that provide electric service to the district; those costs must be borne by the generator or customers within the district. shall not bear any costs
A microgrid district whose generation is more than 70% consumed by one or more high impact data centers is exempt from the statutory limit allowing the Secretary to certify no more than two microgrid districts. greater than 70%
Certified-project filings are confidential, and the Secretary must establish a process to protect letters of intent and petitions from disclosure. deemed confidential
A microgrid district may deliver up to 10% of its generated electricity outside the district directly to the wholesale market, while the remaining generation must be used within the district. maximum of 10%
Sources
current law · StatewideCreates the High Impact Data Center Program to encourage the development, construction, operation, maintenance, and expansion of high impact data centers in West Virginia, with implementation authority assigned to the Division of Economic Development.West Virginia Code §5B-2-21a
What this means
For certified high-impact data centers, the measure removes many local barriers, including zoning, land-use approvals, and local building permits, while requiring the state to help with development and permitting (local restrictions barred). These benefits are limited to qualifying projects, including those meeting the 90-megawatt threshold, and centers must notify the state when they meet or expect to meet the definition (90 megawatts total or higher).
People behind it
- Hanshaw (Mr. Speaker)
Bill sponsor and House of Delegates sponsor listed on Committee Substitute for House Bill 2014.
- Riley
Bill sponsor listed on Committee Substitute for House Bill 2014.
- Fehrenbacher
Bill sponsor listed on Committee Substitute for House Bill 2014.
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- Anderson
Bill sponsor listed on Committee Substitute for House Bill 2014.
- Zatezalo
Bill sponsor listed on Committee Substitute for House Bill 2014.
- Akers
Bill sponsor listed on Committee Substitute for House Bill 2014.
- Hornbuckle
Bill sponsor listed on Committee Substitute for House Bill 2014.
- Executive
Identified as the requesting party for the bill.
- Division of Economic Development
Administers the High Impact Data Center Program.
- Secretary of the Department of Commerce
Certifies high impact data centers and issues certification confirmations.
- Department of Commerce
Assists certified high impact data center projects and designates a Data Economy Liaison.
Restrictions & requirementsHide restrictions & requirements8
A data center that meets, or reasonably anticipates meeting, the high-impact definition must notify the Division of Economic Development within 30 days and provide information about the definition's elements, including known or expected power consumption (within 30 days).
Owners or operators of high-impact data center property must file a signed and sworn annual property return with the Board of Public Works by May 1 (On or before May 1 in each year).
Certified high-impact data centers must pay applicable business and occupation taxes, municipal sales and use taxes, ad valorem property taxes at the same millage rates as other businesses, municipal service fees, and utility rates and charges; capacity or impact fees may apply when utility capital improvements are needed to serve the project (Pay business and occupation tax).
Certified high-impact data centers must be designed, acquired, constructed, and equipped in compliance with the State Building Code (pursuant to the State Building Code).
No payment-in-lieu-of-taxes arrangement or tax-increment-financing project may be entered into for property subject to the high-impact data center tax provisions (no payment in lieu of taxes shall be entered into).
A data center seeking service as a microgrid customer must constitute new electric load: it generally cannot reduce the load of an existing in-state facility in connection with the new investment, and an existing business cannot relocate merely to obtain microgrid service (does not decrease the load of an existing facility).
A microgrid customer seeking a special electric-service contract must first negotiate with the utility for up to 120 days; if no agreement is reached, it must petition the Public Service Commission, and load not covered by backup or supplemental service is treated as non-firm and interruptible (within 120 days).
Electricity generation, transmission, and distribution costs associated with serving a microgrid district cannot be charged to regulated utility customers outside the district; those costs must be paid by the generator or electricity consumers within the district (shall not bear any costs).
Benefits & exceptionsHide benefits & exceptions12
Creates the High Impact Data Center Program within the Division of Economic Development to encourage the development, construction, operation, maintenance, and expansion of qualifying data centers. High Impact Data Center Program
Requires the Secretary of Commerce to certify a qualifying high impact data center and issue confirmation within 14 days after receiving the required notification. Certification is available only to facilities meeting the statutory definition, including an aggregate critical IT load of at least 90 megawatts and placement into service on or after July 1, 2025. issue confirmation of certification
Protects business information submitted by a data center if identified as confidential business information by exempting it from the Freedom of Information Act and requiring the Secretary to take reasonable steps to protect it. confidential business information
Requires the Department of Commerce to assist certified high impact data center projects and designate a Data Economy Liaison as a single point of contact to help coordinate and expedite development and operation, including site selection and permitting. single point-of-contact
Prevents counties and municipalities from adopting or enforcing rules that limit the creation, acquisition, construction, equipping, development, expansion, or operation of a certified high impact data center. Certified projects are also exempt from local zoning, land-use, noise, lighting, development, building-permitting, inspection, code-enforcement, and licensing requirements. The State Building Code still applies. may not be subject to
Authorizes the Departments of Commerce, Environmental Protection, and Transportation to take actions supporting certified projects, including developing or improving highways, roads, thoroughfares, and sidewalks serving the project area. may take actions necessary in support
Allows a certified microgrid district to provide electricity to eligible businesses without being subject to Public Service Commission jurisdiction over rates, certificates of convenience and necessity, conditions of service, or complaints; it also removes state net-metering and interconnection standards and allows qualifying wholesale generation without certain state siting certificates. Not be subject to the jurisdiction
Allows a microgrid customer in a certified microgrid district to negotiate a special contract with the local utility, including different rates and terms and backup or supplemental service. If negotiations fail after 120 days, the customer may petition the Public Service Commission, which must establish the special contract within 90 days. special contracts and rates
Treats a facility that has not previously received service from a regulated West Virginia utility or is making a capital investment in a new facility within the district as eligible new electric load, and allows an eligible facility to operate without connecting to or using a public utility. Temporary utility service for initial construction does not defeat eligibility. not required to connect with and use any public electric utility
Creates an exception to the general limit of two certified microgrid districts when more than 70 percent of the district’s generated electricity is consumed by one or more high impact data centers, or will be consumed by them once completed and operational. greater than 70% of the electricity generated
Requires that regulated utility customers outside a microgrid district not bear costs associated with generation, transmission, or distribution facilities serving the district; those costs must be borne by the generator or electricity consumers within the district. shall not bear any costs
Requires utility rates, fees, and charges for water, sewer, stormwater, garbage, recycling, and similar services used by a certified project to be based on the cost of providing the service, while limiting capacity or impact fees to costs for capital additions required to serve the project. based on the cost of providing such service
Sources
current law · StatewideEstablishes a statewide framework for certified microgrid districts and certified high-impact data centers, preempting county and municipal regulation and generally exempting covered projects from local zoning, permitting, inspection, licensing, and similar requirements while keeping them subject to the State Building Code; the measure was passed on March 14, 2026, and takes effect June 12, 2026.West Virginia H 5168 (2026)
What this means
For certified high-impact data centers, the measure blocks counties and cities from applying many local zoning, land-use, noise, lighting, and permitting rules, making it much easier to build, expand, and operate (local restrictions barred). They still must pay applicable taxes and service and utility charges, and follow the state building code, but the broad protection from local restrictions is a substantial benefit (taxes and service fees still apply).
People behind it
- Delegate Statler
Named bill sponsor.
- Delegate G. Howell
Named bill sponsor.
- Delegate Toney
Named bill sponsor.
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- Delegate Linville
Named bill sponsor.
- Delegate Hott
Named bill sponsor.
- Delegate Hillenbrand
Named bill sponsor.
- Department of Commerce
Required to assist certified microgrid districts and high-impact data centers and authorized to promulgate rules implementing the measure.
- Secretary of Commerce
Must designate a Data Economy Liaison and certifies microgrid districts and high-impact data centers under the measure.
- Director of the West Virginia Office of Emergency Medical Services
Administers the County Emergency Medical Services Fund and the All-County Emergency Medical Services Fund, distributes their money, and may propose implementing rules.
- Office of Emergency Medical Services
Administers the Emergency Medical Services Crisis Response and Mental Health Treatment Fund, uses specified lottery transfers for mental-health treatment and training, and prepares the required annual report.
- County commissions
Receive distributions from the emergency medical services funds and distribute them to eligible emergency medical services departments.
- Lottery Commission
Must annually transfer specified remaining and available State Lottery Fund net profits to the three emergency medical services funds.
- Department of Environmental Protection
Authorized to take actions supporting development of certified microgrid districts and certified data centers.
- Department of Transportation
Authorized to take actions supporting development of certified microgrid districts and certified data centers, including highway, road, thoroughfare, and sidewalk improvements.
Restrictions & requirementsHide restrictions & requirements6
Only data centers certified by the Secretary of Commerce as certified high impact data centers receive the measure’s exemptions from local regulation and permitting.
Certified high impact data centers must pay applicable municipal business and occupation taxes, municipal sales and use taxes, and county and municipal ad valorem property taxes at the same rates as other businesses.
Certified high impact data centers must pay applicable county and municipal service fees, including fire, ambulance, police, sanitation, and city-service fees; they cannot be charged both county and municipal fire-protection fees.
Certified high impact data centers must pay utility rates, fees, and charges for services used during construction and operation, including water, sewer, stormwater, garbage, and recycling.
Utility service for a certified high impact data center must be provided under a Public Service Commission-regulated contract, and the developer may be required to pay capacity or impact fees when the utility must make capital additions, betterments, or improvements to serve the project.
Certified high impact data centers must be designed, acquired, constructed, and equipped in accordance with the State Building Code and State Rule 87 CSR 4.
Benefits & exceptionsHide benefits & exceptions14
The Department of Commerce must assist certified high impact data centers and designate a Data Economy Liaison as a single point of contact to coordinate and expedite development and operation, including site selection and permitting.
Counties and municipalities may not enact, implement, or enforce ordinances, regulations, or rules that limit the creation, acquisition, construction, equipping, development, expansion, or operation of a certified high impact data center.
Certified high impact data centers are exempt from county and municipal zoning, horticultural, noise, viewshed, lighting, development, and land-use ordinances, restrictions, limitations, and approvals.
Certified high impact data centers are exempt from county and municipal building permitting, inspection, and code enforcement requirements.
Certified high impact data centers are exempt from county and municipal license requirements and generally from the legal jurisdiction of the county or municipality, except as specifically provided in the article.
A municipality may not be required to consent to or approve state or county actions involving a certified high impact data center, including the establishment of tax increment financing districts or approval of related plans.
Utility rates, fees, and charges for services used by a certified high impact data center must be based on the cost of providing the service, and the utility must enter into and file a special contract with the Public Service Commission.
A certified high impact data center must pay a capacity-improvement or impact fee only to the extent that the utility must design, acquire, construct, and equip capital improvements to provide service to the project.
Utility customers outside a microgrid district may not bear construction or operating costs for new utility property built solely to provide service within the district.
A certified high impact data center may not be required to pay both county and municipal fire-protection fees.
Certified high impact data centers are entitled to police and fire protection, if available, in the same manner as other businesses or commercial ventures in the county or municipality.
The Department of Commerce, Department of Environmental Protection, and Department of Transportation may develop or improve highways, roads, thoroughfares, and sidewalks supporting a certified high impact data center.
A certified high impact data center may be designed, acquired, constructed, and equipped under the State Building Code and corresponding State Rule 87 CSR 4.
The Department of Commerce or its agencies, divisions, or subdivisions may adopt legislative or emergency rules to implement assistance for certified high impact data centers.
Sources
current law · StatewideEstablishes programs to develop certified microgrid districts and high-impact data centers and support electric-grid stabilization in West Virginia; the Act was passed April 12, 2025, and took effect July 11, 2025.West Virginia HB 2014 (2025)
What this means
For qualifying large data centers—those with at least 90 MW of critical IT load placed in service on or after July 1, 2025—the measure bars counties and municipalities from applying many local zoning, land-use, licensing, and permitting rules, and creates a state liaison to help expedite development. (90 megawatts total or higher; may not be subject to county or municipal zoning). The state building code still applies, and the strongest protections are limited to certified projects, but the broad limits on local restrictions make the overall effect substantially beneficial.
People behind it
- Delegate Hanshaw (Mr. Speaker)
Lead sponsor of House Bill 2014
- Delegate Riley
Co-sponsor of House Bill 2014
- Delegate Fehrenbacher
Co-sponsor of House Bill 2014
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- Delegate Anderson
Co-sponsor of House Bill 2014
- Delegate Zatezalo
Co-sponsor of House Bill 2014
- Delegate Akers
Co-sponsor of House Bill 2014
- Delegate Hornbuckle
Co-sponsor of House Bill 2014
- The Executive
Requested the measure
- Division of Economic Development
Administers the Certified Microgrid Development Program and High Impact Data Center Program
- Secretary of the Department of Commerce
Certifies microgrid districts and high impact data centers
- Department of Commerce
Assists certified microgrid districts and high impact data centers and administers the Electric Grid Stabilization and Security Fund
- Public Service Commission
Approves or establishes special contracts and rates and performs assigned electric-grid regulatory duties
- Department of Environmental Protection
May take actions supporting development of certified microgrid districts and data centers
- Department of Transportation
May take actions supporting development of certified microgrid districts and data centers
- State Auditor
Maintains project tax-distribution accounts and distributes high-impact data-center tax revenues
- Board of Public Works
Receives property returns from high-impact data centers and microgrid power generators
- Secretary of Revenue
Certifies and transfers proceeds from the Personal Income Tax Reduction Fund
- West Virginia Board of Treasury Investments
May manage and invest Personal Income Tax Reduction Fund monies
- West Virginia Investment Management Board
May manage and invest Personal Income Tax Reduction Fund monies
Restrictions & requirementsHide restrictions & requirements12
A data center that meets the high-impact definition must notify the Division of Economic Development within 30 days after determining that it qualifies, or when it reasonably anticipates qualifying in the future; the notification must address the definition's elements, including known or expected power consumption.
High-impact data-center status is limited to facilities with an aggregate critical IT load of at least 90 megawatts that are placed into service on or after July 1, 2025.
Owners or operators of high-impact data centers, and microgrid power generators supplying them, must file a sworn property return with the Board of Public Works by May 1 each year for the preceding calendar year.
Certified high-impact data centers and their owners, operators, tenants, lessees, or licensees must pay applicable business and occupation taxes, municipal sales and use taxes, ad valorem real and personal property taxes, municipal service fees, and utility charges.
Certified high-impact data centers and related property subject to the special tax-distribution rules may not use payment-in-lieu-of-tax arrangements or tax-increment-financing projects involving that property.
A certified data center must be designed, acquired, constructed, and equipped under the State Building Code and corresponding state rule 87 CSR 4.
Utility rates, fees, and charges for water, sewer, stormwater, garbage, recycling, and similar services must be based on the cost of providing service, and capacity or impact fees may be imposed when utility capital additions or improvements are required for the project.
Customers outside a microgrid district may not be charged construction or operating costs for utility property built solely to serve a microgrid district or its data centers.
To receive microgrid-related benefits, a data center must constitute new electric load and may not reduce the load of an existing facility outside the microgrid district in connection with the new investment.
A microgrid district applicant generally must make good-faith efforts to negotiate with the local distribution utility for at least 120 days before submitting its certification letter of intent and must document those efforts; the requirement does not apply to proposed microgrids producing at least 300 megawatts or remaining entirely unconnected to the local distribution utility after construction.
Electricity generated within a certified microgrid district may be used only within the district or sold to the wholesale market, and no more than 10 percent of generated electricity may be delivered outside the district.
A certified microgrid district seeking a special contract with the local distribution utility must negotiate for up to 120 days before petitioning the Public Service Commission; the district must also provide reasonable access and terms for the utility to connect its transmission or distribution facilities.
Benefits & exceptionsHide benefits & exceptions18
Creates the High Impact Data Center Program within the Division of Economic Development to administer state support for the development, construction, operation, maintenance, and expansion of qualifying data centers.
Allows a data center that meets the high-impact definition to notify the Division of Economic Development when it qualifies or is expected to qualify, including its expected power consumption, and requires the Secretary of Commerce to issue certification confirmation within 14 days.
Protects confidential business information submitted for data-center certification from disclosure under the Freedom of Information Act, while requiring public reporting to omit identifying information.
Requires the Department of Commerce to assist certified high impact data centers and designate a Data Economy Liaison as a single point of contact to coordinate and expedite development, including site selection and permitting.
Allows the Department of Commerce, Department of Environmental Protection, and Department of Transportation to support certified data-center projects through necessary highways, roads, thoroughfares, and sidewalk development or improvements.
Prevents counties and municipalities from adopting or enforcing rules that limit the creation, construction, equipping, development, expansion, or operation of a certified high impact data center.
Exempts certified high impact data centers from county and municipal zoning, land-use, noise, lighting, viewshed, development, building-permit, inspection, code-enforcement, and local-license requirements, subject to the exceptions specified in the act.
Requires municipalities, if available, to provide certified high impact data centers municipal police and fire protection on the same basis as other businesses.
Requires utility rates, fees, and charges for water, sewer, stormwater, garbage, recycling, and similar services provided to a certified data center to be cost-based and established through special contracts filed with the Public Service Commission.
Limits capacity or impact fees charged to a certified data center to the costs of capital additions, betterments, or improvements that the utility must make to serve the project, and prohibits outside utility customers from bearing construction or operating costs for utility property built solely for the project.
Allows an eligible retail electric customer located in a certified microgrid district to obtain a special utility contract with rates or terms different from the utility's tariff, including backup and supplemental service; if negotiations fail after 120 days, the customer may petition the Public Service Commission, which must act within 90 days.
Treats a qualifying facility in a certified microgrid district as new electric load when it has not previously received service from an in-state regulated utility or is making a capital investment in a new facility, provided the investment does not reduce the load of an existing out-of-district facility.
Allows an eligible facility in a certified microgrid district to operate without connecting to or using a public electric utility, while allowing temporary utility service for initial construction without losing new-load status.
Allows electricity generation and distribution within a certified microgrid district to operate outside Public Service Commission jurisdiction for rates, certificates of convenience and necessity, conditions of service, complaints, and state net-metering and interconnection standards, subject to the act's limits.
Permits a microgrid generator serving a certified data center to elect exempt-wholesale-generator treatment under federal law and avoid specified Public Service Commission siting-certificate requirements when supplying a utility or regional transmission organization.
Permits additional microgrid districts beyond the general two-district limit when more than 70 percent of the district's generated electricity is consumed by one or more high impact data centers, or is expected to be consumed after those data centers become fully operational.
Creates the Electric Grid Stabilization and Security Fund, which may support regulated-utility grid stabilization and security, generation maintenance and upgrades, and transmission resources serving West Virginia ratepayers, potentially supporting reliable service for data-center projects.
Requires regulated electric utilities to maintain an average annual minimum 30-day aggregate coal supply at each coal-fired plant and requires planning for future generation capacity, measures intended to support electric-system reliability for large loads.
Sources
current law · StatewideEstablishes the High Impact Data Center Program and authorizes the Department of Commerce to certify qualifying data centers.West Virginia Code §5B-2-21a and §5B-2-21b
What this means
For certified high-impact data centers, the measure bars local rules that could limit development and exempts them from local zoning and land-use controls, while also providing a state liaison to help with permitting (local zoning and land-use exemptions). These strong protections are limited to qualifying, certified centers, and state building-code requirements remain, but the overall effect is a substantial boost to development and operation.
People behind it
- Hanshaw (Mr. Speaker)
Lead sponsor of House Bill 2014, which created the measure, by request of the Executive.
- Riley
Sponsor of House Bill 2014.
- Fehrenbacher
Sponsor of House Bill 2014.
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- Anderson
Sponsor of House Bill 2014.
- Zatezalo
Sponsor of House Bill 2014.
- Akers
Sponsor of House Bill 2014.
- Hornbuckle
Sponsor of House Bill 2014.
- Executive
Requested House Bill 2014.
- Department of Commerce
Must assist certified microgrid districts and certified high impact data centers and may promulgate implementing legislative rules.
- Secretary of the Department of Commerce
Must designate a Data Economy Liaison to coordinate and expedite development and operation of certified projects.
- Division of Economic Development
Administers the High Impact Data Center Program.
- Department of Environmental Protection
May take actions necessary to support development of certified microgrid districts and certified data centers.
- Department of Transportation
May take actions necessary to support development of certified microgrid districts and certified data centers.
Restrictions & requirementsHide restrictions & requirements13
A data center that meets, or reasonably anticipates meeting, the statutory definition of a high impact data center must notify the Division of Economic Development within 30 days after making that determination, or may provide the anticipated future date when compliance is expected. The notification must address the definition’s elements and known or expected power consumption.
High impact data centers must be identified and certified by the Secretary of the Department of Commerce after a finding that they satisfy the statutory definition, with confirmation issued within 14 days after the required notification.
Owners or operators of high impact data centers, and microgrid power generators supplying them, must file a signed and sworn property return with the Board of Public Works by May 1 each year covering the preceding calendar year.
Certified high impact data centers and their owners, operators, tenants, lessees, and licensees must pay applicable business and occupation taxes, municipal sales and use taxes, ad valorem real and personal property taxes at the same millage rates as other businesses, and applicable municipal and county service fees. They may not be required to pay both county and municipal fire-protection fees.
Certified high impact data centers must pay utility rates, fees, and charges for services used during construction and operation, including water, sewer, stormwater, and garbage or recycling collection. Utility contracts must be filed with the Public Service Commission, and capacity or impact fees may be imposed when utility capital improvements are required to serve the project.
Certified high impact data centers must be designed, acquired, constructed, and equipped in accordance with West Virginia’s State Building Code and the corresponding state rule.
Payment-in-lieu-of-tax agreements and tax-increment-financing projects, plans, or arrangements may not be entered into or undertaken for property subject to the high impact data center valuation provisions.
A high impact data center must have an aggregate critical IT load of at least 90 megawatts and must be placed into service on or after July 1, 2025 to qualify under the statutory definition.
A data center using a certified microgrid district must constitute new electric load. The customer generally must not have previously received service from an in-state regulated utility or must be making a capital investment in a new facility, and the investment may not reduce the load of an existing facility elsewhere in West Virginia.
A certified microgrid district seeking to obtain electricity from the local distribution utility generally must negotiate in good faith for at least 120 days before submitting its letter of intent. This requirement does not apply to a district proposing to produce at least 300 megawatts or to operate without any connection to the local distribution utility after construction.
A certified microgrid district seeking a special contract with a local distribution utility must negotiate for up to 120 days before petitioning the Public Service Commission. If negotiations fail, the commission establishes the contract, including backup and supplemental service, within 90 days; uncovered load is treated as non-firm and interruptible.
Electricity generated within a certified microgrid district generally may be used only within the district or sold to the wholesale market, and no more than 10 percent of the electricity generated may be delivered outside the district to the wholesale market.
Regulated electric utility customers may not be charged for construction, operational, ancillary-service, grid-related, energy-related, or capacity-related costs associated with generation, transmission, or distribution facilities serving a microgrid district; those costs must be borne by the generator or electricity consumers within the district.
Benefits & exceptionsHide benefits & exceptions14
Creates the High Impact Data Center Program within the Division of Economic Development to support the development, construction, operation, maintenance, and expansion of qualifying data centers, with authority to adopt legislative and emergency rules. creates the High Impact Data Center Program
Provides a state certification process for high impact data centers. A qualifying facility generally must have an aggregate critical IT load of at least 90 megawatts and be placed in service on or after July 1, 2025; the Secretary of Commerce must issue confirmation within 14 days after receiving the required notification. critical IT load in the aggregate of 90 megawatts total or higher
Requires the Department of Commerce to assist certified high impact data centers and designates a Data Economy Liaison as a single point of contact to coordinate and expedite development and operation, including site selection and permitting. single point-of-contact
Prevents counties and municipalities from adopting or enforcing ordinances, regulations, or rules that limit the creation, acquisition, construction, equipping, development, expansion, or operation of a certified high impact data center project. limit, in any way
Exempts certified high impact data centers from county and municipal zoning, noise, lighting, viewshed, land-use, development, building-permit, inspection, code-enforcement, and local-license requirements, as well as local jurisdiction except where the article specifically provides otherwise. may not be subject to
Removes requirements for municipal consent or approval for specified state or county actions involving a certified high impact data center, including tax-increment-financing actions. consent or approval of the municipality
Directs the Department of Commerce, Department of Environmental Protection, and Department of Transportation to take actions supporting certified projects, including developing or improving highways, roads, thoroughfares, and sidewalks serving the project. development or improvement of such highways, roads, thoroughfares, and sidewalks
Allows certified high impact data centers to receive municipal and county utility services under cost-based contracts filed with the Public Service Commission; capacity or impact fees are limited to capital additions required to serve the project, and outside utility customers may not bear costs for property built solely to serve a microgrid district. based on the cost of providing such service
Guarantees certified projects access to county or municipal police and fire protection when available, in the same manner as other businesses; the owner cannot be charged both county and municipal fire-protection fees. in no event shall
Permits a qualifying high impact data center to locate in a certified microgrid district as eligible new electric load, without being required to connect to or use a public electric utility; an initial construction connection does not eliminate new-load status. not required to connect with and use any public electric utility
Allows electricity providers within a certified microgrid district to avoid Public Service Commission jurisdiction over rates, certificates of convenience and necessity, conditions of service, and complaints; the provider may also use federal exempt-wholesale-generator status without specified state siting certificates. This applies only to service within the statutory limits, including the restriction that no more than 10 percent of generated electricity may be delivered outside the district to the wholesale market. Not be subject to the jurisdiction of the Public Service Commission
Allows a microgrid customer to negotiate a special electric-service contract with the local utility, including rates and backup or supplemental service that differ from the utility tariff. If negotiations fail after 120 days, the customer may petition the Public Service Commission, which must establish the contract and issue a final order within 90 days. including backup and supplemental service
Prohibits regulated electric-utility customers outside a certified microgrid district from bearing generation, transmission, distribution, grid, energy, ancillary-service, or capacity costs associated with facilities serving the district. shall not bear any costs
Provides confidentiality protection for business information submitted by a data center to the Division of Economic Development when the data center identifies it as confidential business information; that information is exempt from the Freedom of Information Act. shall be exempt from the Freedom of Information Act
Sources
current law · StatewideEstablishes exclusive statewide control over certified microgrid districts and certified high impact data centers to promote uniform regulation, job creation, and public revenue, while prohibiting counties and municipalities from imposing most local zoning, permitting, licensing, and code-enforcement requirements on certified projects under §5B-2-21B.West Virginia Code §5B-2-21B, Certified Microgrid Districts and High Impact Data Centers
What this means
For certified high-impact data centers, the measure bars local zoning, land-use rules, and building-permit enforcement, removing major potential obstacles to development and expansion (local rules that do not apply). Certification is limited to qualifying projects, and they still owe applicable taxes and fees and must follow the State Building Code, but the strong protection from future local restrictions makes the overall effect highly favorable.
People behind it
- Hanshaw
Delegate identified as a sponsor of Committee Substitute for House Bill 2014.
- Riley
Delegate identified as a sponsor of Committee Substitute for House Bill 2014.
- Fehrenbacher
Delegate identified as a sponsor of Committee Substitute for House Bill 2014.
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- Anderson
Delegate identified as a sponsor of Committee Substitute for House Bill 2014.
- Zatezalo
Delegate identified as a sponsor of Committee Substitute for House Bill 2014.
- Akers
Delegate identified as a sponsor of Committee Substitute for House Bill 2014.
- Hornbuckle
Delegate identified as a sponsor of Committee Substitute for House Bill 2014.
- The Executive
Identified as the requesting party for Committee Substitute for House Bill 2014.
- Department of Commerce
Responsible for assisting certified microgrid district and high impact data center projects and administering related provisions.
- Secretary of Commerce
Responsible for designating a Data Economy Liaison and certifying microgrid districts and high impact data centers.
Restrictions & requirementsHide restrictions & requirements9
A data center that meets, or reasonably anticipates meeting, the statutory definition of a high-impact data center must notify the Division of Economic Development within 30 days after making that determination, or may provide an anticipated future date when the threshold will be met.
High-impact data center status is limited to facilities with an aggregate critical IT load of at least 90 megawatts that are placed into service on or after July 1, 2025.
Owners or operators of high-impact data centers must file a sworn annual property return with the Board of Public Works by May 1 covering the preceding calendar year.
Data centers must pay applicable business and occupation taxes, municipal sales and service taxes, municipal use taxes, and ad valorem real and personal property taxes at the same millage rates applicable to other businesses.
Data centers must pay applicable county and municipal service fees, including fire, ambulance, police, sanitation, and city service fees; however, they cannot be charged both county and municipal fire-protection fees.
Data centers must pay utility rates, fees, and charges for water, sewer, stormwater, garbage, recycling, and other utilities used during construction and operation. Capacity or impact fees may be charged when utility capital improvements are needed to serve the project.
Certified data centers must be designed, acquired, constructed, and equipped in accordance with the State Building Code and State Rule 87 CSR 4.
No payment-in-lieu-of-taxes arrangement or tax-increment-financing project, plan, or arrangement may be entered into for property subject to the high-impact data center valuation provisions.
A certified high-impact data center seeking a special electric-service contract must first negotiate with the local distribution utility for up to 120 days; if negotiations fail, it may petition the Public Service Commission, which must issue a final order within 90 days.
Benefits & exceptionsHide benefits & exceptions13
The Department of Commerce must designate a "Data Economy Liaison" as a single point of contact to help coordinate and expedite certified high impact data center development and operation, including site selection and permitting. single point-of-contact
A data center that meets the statutory definition of a high impact data center can be certified by the Secretary of Commerce. The Secretary must issue confirmation within 14 days after receiving the required notification. within 14 days
Confidential business information submitted by a high impact data center is exempt from the Freedom of Information Act, subject to the Secretary maintaining a complete list of certified centers and nonidentifying information for the Governor and Legislature. exempt from the Freedom of Information Act
Counties and municipalities may not enact, implement, or enforce rules that limit the creation, construction, development, expansion, or operation of a certified high impact data center or certified microgrid district. may not ... limit, in any way
Certified high impact data centers and certified microgrid districts are excluded from county and municipal zoning, land-use, noise, lighting, viewshed, development, building-permit, inspection, code-enforcement, and licensing requirements. They also are outside local legal jurisdiction, except as otherwise provided in the article, and do not require municipal consent for specified state or county actions, including tax-increment-financing actions. may not be subject to
The Department of Commerce, Department of Environmental Protection, and Department of Transportation may support certified projects by developing or improving highways, roads, thoroughfares, and sidewalks serving the project. may take actions necessary in support
A certified high impact data center may receive municipal police and fire protection, if available, on the same basis as other businesses or commercial ventures in the municipality. entitled to municipal police protection and municipal fire protection
A certified high impact data center must use the State Building Code and corresponding State Rule 87 CSR 4, rather than local building-code permitting and enforcement requirements. pursuant to the State Building Code
A certified microgrid district may provide electricity to businesses making a capital investment in a new or expanded facility within the district without being subject to specified Public Service Commission jurisdiction over rates, certificates of convenience and necessity, conditions of service, or complaints, and without the statutory net-metering and interconnection standards. The district may also qualify as an exempt wholesale generator, subject to federal law and the statutory limits on deliveries outside the district. provide any such electric service
A facility locating or expanding in a certified microgrid district can qualify as eligible new electric load and is not required to connect to or use a public electric utility, although electricity used for initial construction and development does not defeat new-load status. not required to connect with and use any public electric utility
After a microgrid district is certified, an eligible microgrid customer may negotiate a special contract with the local electric utility for rates and service terms different from the utility's tariff. If negotiations fail within 120 days, the customer may petition the Public Service Commission, which must establish the requested service, including backup and supplemental service, within 90 days; uncovered load is nonfirm and interruptible. within 120 days
Regulated electric-utility customers outside a certified microgrid district may not be charged for generation, transmission, distribution, operational, ancillary, grid-related, energy-related, or capacity-related costs associated with facilities serving the district; those costs must be paid by the generator or consumers within the district. shall not bear any costs
Utility rates, fees, and charges for water, sewer, stormwater, garbage, recycling, and other utilities used by a certified project must be based on the cost of providing service. Capacity or impact fees may be imposed only to the extent the utility must make capital additions or improvements to serve the project, and customers outside the microgrid district may not bear costs for utility property built solely to serve it. based on the cost of providing such service
Sources
failed · State measure: Certified microgrid districts and certified high-impact data centers statewide; the surface-water requirement applies only in growth counties with majority karst hydrogeology, which are not identified by nameWould establish the proposed “Certified Microgrid Program” by clarifying statewide management of certified microgrid districts and high-impact data centers, including Commerce Department assistance and a designated liaison to coordinate development and permitting.West Virginia HB 5611 (2026)
What this means
The measure would require data centers in certain counties to use surface water, which could make water sourcing more costly or cause delays. This applies only in counties with specific geological conditions; the other bill listings do not give enough detail to assess additional effects.
People behind it
- Delegate Funkhouser
Introduced House Bill 5611.
- Delegate Ridenour
Introduced House Bill 5611.
- Department of Commerce
Responsible for assisting certified microgrid districts and certified high impact data centers and administering related development coordination.
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- Secretary of the Department of Commerce
Responsible for certifying qualifying projects and designating a Data Economy Liaison.
- Department of Environmental Protection
Authorized to take actions supporting development of certified microgrid districts and certified data centers.
- Department of Transportation
Authorized to take actions supporting development of certified microgrid districts and certified data centers, including highway, road, thoroughfare, and sidewalk improvements.
Restrictions & requirementsHide restrictions & requirements5
Non-domestic water must come from surface water: In growth counties with majority karst hydrogeology, water used by a data center or related microgrid or high-impact data center development for any non-domestic purpose must originate from a surface-water course, whether obtained through a utility or directly.
Certified projects must pay specified taxes and municipal service fees: Certified microgrid districts and certified high-impact data centers, including their owners, operators, managers, tenants, lessees, and licensees, must pay applicable business and occupation taxes, municipal sales and use taxes, ad valorem real and personal property taxes, and municipal service fees.
Certified projects must pay utility rates, fees, and charges: Certified projects must pay utility charges for construction and operation, including water, sewer, stormwater, and garbage and recycling services. They may also have to pay capacity or impact fees when utility capital improvements are needed to serve the project, limited to the cost of those improvements.
Construction must comply with the State Building Code: Certified microgrid districts and certified data centers must be designed, constructed, and equipped in accordance with West Virginia’s State Building Code and corresponding state rules.
Prohibits data centers from collecting citizens’ data.
Benefits & exceptionsHide benefits & exceptions6
The Department of Commerce must help certified high-impact data centers with site selection, permitting, development, and operation, using a Data Economy Liaison as a single point of contact to coordinate and expedite those activities. assist coordinate and expedite their development and operation
Counties and municipalities may not enact, implement, or enforce ordinances, regulations, or rules that limit the creation, construction, development, expansion, or operation of a certified high-impact data center. limit, in any way, the creation of
Certified high-impact data centers are exempt from specified county and municipal zoning, land-use, development, noise, lighting, viewshed, building-permitting, inspection, code-enforcement, licensing, and local-jurisdiction requirements, subject to the bill's stated exceptions. may not be subject to the following
Specified state or county actions, including establishing or approving tax-increment-financing districts and plans, do not require municipal consent or approval for the project. requirement under state law for the consent or approval
Utilities must provide construction and operating service under cost-based rates and a special contract filed with the Public Service Commission. Capacity or impact fees are limited to utility capital improvements needed to serve the data center, and customers outside the project cannot be charged for utility property built solely for it. rates, fees, and charges for such services shall be based on the cost of providing such service
The Departments of Commerce, Environmental Protection, and Transportation may develop or improve highways, roads, thoroughfares, and sidewalks supporting a certified high-impact data center. development or improvement of such highways, roads, thoroughfares, and sidewalks
Sources
failed · StatewideThis proposed bill would have restored or expanded county and municipal regulatory authority over certified high-impact data centers and microgrid projects, including projects in Berkeley County.West Virginia HB 5620 (2026)
What this means
The bill would restore local authority over certified data centers, so counties and cities could impose zoning, land-use, building-permit, and licensing rules that the current provisions shield them from. That could add costs or delays, although the bill also keeps Commerce assistance and does not itself impose any new local rules; its stated purpose is to restore local control.
People behind it
- Delegate Kimble
Sole explicitly identified bill sponsor; introduced House Bill 5620.
- Department of Commerce
Administers the measure by assisting certified microgrid districts and certified high impact data centers.
- Secretary of Commerce
Administers the measure by designating a Data Economy Liaison to coordinate and expedite project development and operation.
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- Department of Environmental Protection
Authorized to take actions necessary to support development of certified microgrid districts and certified data centers.
- Department of Transportation
Authorized to take actions necessary to support development of certified microgrid districts and certified data centers.
Restrictions & requirementsHide restrictions & requirements7
Owners, operators, managers, tenants, lessees, and licensees must pay applicable municipal business and occupation taxes.
Owners, operators, managers, tenants, lessees, and licensees must collect and remit applicable municipal sales, service, and use taxes.
Projects must pay ad valorem real and personal property taxes at the same millage rates applicable to other businesses in the county and municipality.
Projects must pay all applicable municipal service fees, including fire, police, sanitation, and city-service fees.
Projects must pay utility rates, fees, and charges for construction and operation, including water, sewer, stormwater, and garbage or recycling services.
Developers must pay capacity or impact fees to the extent that a utility must design, acquire, construct, or equip capital improvements to provide service to the project; the utility must also contract for the service and file the special contract with the Public Service Commission.
Projects must be designed, acquired, constructed, and equipped in accordance with the State Building Code and State Rule 87 CSR 4.
Benefits & exceptionsHide benefits & exceptions10
The Department of Commerce must assist certified high impact data centers, and the Secretary must designate a Data Economy Liaison as a single point of contact to coordinate and expedite development and operation, including site selection and permitting. assist projects ... including, but not limited to site selection and permitting
Counties and municipalities may not enact, implement, or enforce ordinances, regulations, or rules that limit the creation, acquisition, construction, equipping, development, expansion, or operation of a certified high impact data center. limit, in any way, the creation of, and acquisition, construction, equipping, development, expansion, and operation
Certified high impact data centers are exempt from county and municipal zoning, horticultural, noise, viewshed, lighting, development, land-use, building-permitting, inspection, and code-enforcement requirements. may not be subject to the following
Certified high impact data centers are exempt from county and municipal license requirements. County or municipal license requirements
Certified high impact data centers are outside the legal jurisdiction of the county or municipality where they are wholly or partly located, except as otherwise provided in the article. legal jurisdiction of the county or municipality
A municipality's consent or approval is not required for specified state or county actions involving a certified high impact data center, including tax-increment-financing districts or plans. requirement under state law for the consent or approval of the municipality
Utilities must base rates, fees, and charges for services to a certified high impact data center on the cost of providing the service and must enter into a Public Service Commission-regulated special contract; capacity or impact fees are limited to utility capital additions needed to serve the project. rates, fees, and charges for such services shall be based on the cost of providing such service
Utility customers outside a certified high impact data center may not be charged construction or operating costs for new utility property built solely to serve the data center. Utility customers outside of the microgrid district shall not bear any construction or operational costs
The Departments of Commerce, Environmental Protection, and Transportation may support development of certified high impact data centers by developing or improving highways, roads, thoroughfares, and sidewalks in the affected county or municipality. may take actions necessary in support of the development
The Department of Commerce may adopt legislative rules, including emergency rules, to implement the section and facilitate certified high impact data center development. may promulgate legislative rules, including emergency rules
Sources
failed · StatewideThis proposed bill would have established separation or buffer requirements between data centers and homes, schools, and churches, potentially affecting the planned Berkeley County campus.West Virginia HB 4948 (2026)
What this means
If enacted, the bill would require data centers to be at least 500 feet from residences, schools, and houses of worship, limiting where they can be built or expanded and potentially adding site-planning costs. The bill states that West Virginia wants to encourage data center development, but it provides no new incentive to offset this siting restriction.
People behind it
- Delegate Anders
Bill sponsor who introduced HB 4948.
- Delegate Kump
Bill sponsor who introduced HB 4948.
- Delegate Masters
Bill sponsor who introduced HB 4948.
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- Delegate Kimble
Bill sponsor who introduced HB 4948.
- Delegate Dillon
Bill sponsor who introduced HB 4948.
- Division of Economic Development
Administers the High Impact Data Center Program created by the measure.
- Secretary of the Department of Commerce
Identifies and certifies high impact data centers under the measure.
Restrictions & requirementsHide restrictions & requirements3
Establishes a minimum 500-foot buffer zone between the construction or establishment of a data center and any residence, school, or house of worship.
Requires a data center that meets, or reasonably anticipates meeting, the definition of a high-impact data center to notify the Division of Economic Development within 30 days of making that determination, or provide notice of the anticipated future date; the notice must address the definition’s elements, including known or expected power consumption.
Requires the Secretary of the Department of Commerce to identify and certify high-impact data centers after determining that they satisfy the statutory definition, with confirmation issued within 14 days after receiving the required notification.
Benefits & exceptionsHide benefits & exceptions3
Creates the High Impact Data Center Program within the Division of Economic Development to encourage the development, construction, operation, maintenance, and expansion of high impact data centers in West Virginia. The Division or its subdivisions may adopt legislative rules, including emergency rules, to implement the program.
Exempts information that a data center identifies as confidential business information from the Freedom of Information Act, subject to the Secretary taking reasonable steps to protect it.
Requires the Secretary to maintain a list of certified high impact data centers and related information for the Governor and Legislature while removing identifying information to preserve the confidentiality designated by a data center.
Sources
failed · StatewideThis proposed bill would have restored local jurisdiction or control over certified data-center and microgrid projects, potentially affecting development in Berkeley County.West Virginia SB 658 (2026)
What this means
The bill would restore counties’ and cities’ authority to regulate certified data centers, removing protections against local rules that could limit construction, expansion, or operation. That could create significant barriers or delays, though it would not ban data centers outright (“restore local control and regulatory authority”).
People behind it
- Senator Garcia
Lead sponsor who introduced Senate Bill 658
- Department of Commerce
Administers assistance for certified microgrid districts and certified high-impact data centers
- Secretary of Commerce
Designates the Data Economy Liaison and certifies qualifying projects
Restrictions & requirementsHide restrictions & requirements6
Certified microgrid districts and certified high-impact data centers must be designed, acquired, constructed, and equipped in accordance with West Virginia’s State Building Code and State Rule 87 CSR 4.
Owners, operators, managers, tenants, lessees, and licensees must pay applicable municipal business and occupation taxes, collect and remit applicable municipal sales and use taxes, and pay ad valorem real and personal property taxes at the same millage rates as other businesses.
Projects must pay applicable municipal service fees, including fire, police, sanitation, and other city-service fees.
Projects must pay utility rates, fees, and charges for water, sewer, stormwater, garbage, recycling, and other utilities used during construction and operation.
A project must pay a utility capacity-improvement or impact fee to the extent that the utility must make capital additions, betterments, or improvements to provide service to the project; the utility must base charges on the cost of service and file a special contract with the Public Service Commission.
The measure authorizes counties and municipalities to enact, implement, and enforce local laws, ordinances, resolutions, regulations, rules, or administrative acts concerning the creation, acquisition, construction, equipping, development, expansion, operation, or general regulation of certified microgrid districts and certified high-impact data centers located or proposed within them.
Benefits & exceptionsHide benefits & exceptions11
The Secretary of Commerce must designate a Data Economy Liaison as a single point of contact to coordinate and expedite certified high-impact data centers’ development and operation, including site selection and permitting.
Counties and municipalities are prohibited from enacting or enforcing ordinances, regulations, or rules that limit the creation, acquisition, construction, equipping, development, expansion, or operation of a certified high-impact data center.
Certified high-impact data centers are exempt from county and municipal zoning, land-use, development, noise, lighting, viewshed, horticultural, and related approval requirements.
Certified high-impact data centers are exempt from county and municipal building permits, inspections, code enforcement, and local license requirements.
A certified high-impact data center is not subject to the legal jurisdiction of the county or municipality where it is located, except as specifically provided in the article.
A municipality’s consent or approval is not required for specified state or county actions involving a certified high-impact data center, including tax-increment-financing districts and plans.
The Department of Commerce, Department of Environmental Protection, and Department of Transportation may develop or improve highways, roads, thoroughfares, and sidewalks supporting a certified high-impact data center.
Utility rates, fees, and charges for services used by a certified high-impact data center must be based on the cost of providing the service, and capacity or impact fees may be imposed only to the extent that utility capital additions, betterments, or improvements are required to serve the project.
Utility customers outside the microgrid district may not bear construction or operational costs for new utility property built solely to serve the project.
A certified high-impact data center is entitled to available municipal police and fire protection in the same manner as other businesses or commercial ventures in the municipality.
A certified high-impact data center must be designed, acquired, constructed, and equipped under the State Building Code and corresponding State Rule 87 CSR 4, providing a uniform statewide construction standard.
Sources
failed · StatewideThis proposed bill would have prohibited state or local subsidies for data centers, including projects proposed in McDowell County.West Virginia HB 4854 (2026)
What this means
The bill would bar the state and local governments from subsidizing any data center, removing a potential source of financial support for building or expanding one (“prohibited from subsidizing any data center”). It does not otherwise restrict construction or operation, so the effect is meaningful but limited to public subsidies.
People behind it
- Delegate Dillon
Identified sponsor and introducer of House Bill 4854
- West Virginia Legislature
Legislative body proposing and enacting the measure
- Division of Economic Development
Administers the High Impact Data Center Program
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- Secretary of the Department of Commerce
Certifies high impact data centers under the measure
Restrictions & requirementsHide restrictions & requirements2
Any data center must notify the Division of Economic Development within 30 days after determining that it meets the statutory definition of a high-impact data center, or when it reasonably anticipates meeting that definition in the future. The notification must address the definition’s requirements, including known or expected power consumption.
The State of West Virginia and every West Virginia political subdivision are prohibited from subsidizing any data center located in the state.
Benefits & exceptionsHide benefits & exceptions4
Creates the High Impact Data Center Program within the Division of Economic Development to support the development, construction, operation, maintenance, and expansion of qualifying data centers in West Virginia.
Authorizes the Division of Economic Development and its agencies or subdivisions to adopt legislative rules, including emergency rules, to administer the High Impact Data Center Program.
Requires the Secretary of the Department of Commerce to certify a data center as a high impact data center within 14 days after receiving its required notification, if it meets the statutory definition.
Protects information identified by a data center as confidential business information from disclosure under the Freedom of Information Act, while requiring the Secretary to maintain a complete list of certified high impact data centers with identifying information removed when necessary to preserve confidentiality.
Sources
failed · StatewideThis statewide executive policy document describes how West Virginia intends to administer data center certification and evaluate impacts involving power, water, setbacks, noise, environmental protection, and ratepayer protection.West Virginia Responsible Data Center Development Plan (2026)
What this means
For certified high-impact data centers, the law bars local zoning and permitting restrictions and provides state help with development, strongly protecting projects from local barriers (local zoning and permitting restrictions). Certification is limited to qualifying large facilities, and projects still must follow environmental laws and the State Building Code, but the overall effect strongly favors building and operating data centers.
People behind it
- Delegate Hanshaw
Named primary sponsor of House Bill 2014.
- Delegate Riley
Named co-sponsor of House Bill 2014.
- Delegate Fehrenbacher
Named co-sponsor of House Bill 2014.
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- Delegate Anderson
Named co-sponsor of House Bill 2014.
- Delegate Zatezalo
Named co-sponsor of House Bill 2014.
- Delegate Akers
Named co-sponsor of House Bill 2014.
- Delegate Hornbuckle
Named co-sponsor of House Bill 2014.
- Executive
Identified as the requester of the bill.
- Division of Economic Development
Administers the Certified Microgrid Development Program and the High Impact Data Center Program.
- Department of Commerce
Assists certified microgrid districts and high impact data centers and administers the Electric Grid Stabilization and Security Fund.
- Secretary of the Department of Commerce
Certifies microgrid districts and high impact data centers and designates the Data Economy Liaison.
- Public Service Commission
Approves or establishes special contracts and rates and performs the bill’s specified electric-grid oversight duties.
- State Auditor
Maintains tax-distribution accounts and distributes high impact data center property-tax revenue.
- Board of Public Works
Receives annual property returns from high impact data centers and microgrid power generators.
- Secretary of Revenue
Certifies and transfers amounts from the Personal Income Tax Reduction Fund.
Restrictions & requirementsHide restrictions & requirements17
To qualify as a high impact data center, a facility or affiliated group must have an aggregate critical IT load of at least 90 megawatts and be placed into service on or after July 1, 2025.
A data center that meets or expects to meet the high impact definition must notify the Division of Economic Development within 30 days after determining that it qualifies, or when it reasonably anticipates qualifying in the future, and must provide information about the definition's requirements and its expected power consumption.
Certified high impact data centers and microgrid power generators must file an annual sworn property return with the Board of Public Works by May 1 covering the preceding calendar year.
A certified data center must be designed, acquired, constructed, and equipped in accordance with West Virginia's State Building Code and the applicable state rule.
Certification does not eliminate federal or state environmental, public-health, safety, historic-resource, or other permitting requirements; data centers remain responsible for obtaining and maintaining all required permits and approvals before and during construction and operation.
Owners, operators, tenants, lessees, and licensees of certified high impact data centers must pay applicable municipal business and occupation taxes, municipal sales and service taxes, municipal use taxes, ad valorem real and personal property taxes, municipal service fees, and utility rates and charges.
A certified high impact data center must pay utility capacity or impact fees to the extent that the utility must make capital additions, betterments, or improvements to provide service to the project.
Certified high impact data center property may not receive a payment in lieu of taxes or be included in a tax increment financing project, plan, or arrangement.
For a certified microgrid district, the generator or electricity consumers located within the district must bear construction, operational, ancillary-service, grid-related, energy-related, and capacity-related costs associated with facilities serving the district; regulated utility customers outside the district may not bear those costs.
A microgrid district seeking certification must demonstrate significant positive economic impact, necessity to attract at least two businesses, an area of no more than 2,250 acres that is nearly contiguous, and limits on electricity use: generation must be consumed within the district or sold to the wholesale market, and no more than 10 percent may be delivered outside the district.
Before submitting a microgrid certification application, an applicant generally must make good-faith efforts for at least 120 days to negotiate with the local distribution utility for some or all of the project's electricity needs and document those efforts. This requirement does not apply to projects proposing at least 300 megawatts of generation or projects that will have no connection to the local distribution utility after construction.
A microgrid district seeking a special contract with the local distribution utility must negotiate for up to 120 days, provide the utility reasonable access and terms to connect its transmission or distribution facilities, and, if negotiations fail, proceed through a Public Service Commission petition process with a final order due within 90 days.
A microgrid customer seeking a special contract must first negotiate with the utility for up to 120 days; if no agreement is reached, the customer may petition the Public Service Commission, which must establish the special contract within 90 days. Load not covered by backup or supplemental-service terms is treated as non-firm and interruptible.
The Secretary of Commerce generally may certify no more than two microgrid districts. The limit does not apply when more than 70 percent of the district's electricity is, or will be when fully operational, consumed by high impact data centers.
A microgrid district's electricity generation and distribution property may not receive a payment in lieu of taxes or be used in a tax increment financing project, plan, or arrangement when the property is located in the county and is directly or indirectly dedicated to serving covered facilities; property is treated as dedicated when at least 75 percent of its output is used for those facilities.
The Department of Commerce's responsible-development plan states that certification applicants must disclose potential unreasonable burdens on nearby residences, schools, and historic sites and submit mitigation strategies for nearby impacts.
The Department of Commerce's responsible-development plan states that certification conditions will require data center developers to secure sufficient new power, pay for required power-delivery and grid infrastructure, and prevent those costs from being shifted to residential or existing commercial ratepayers.
Benefits & exceptionsHide benefits & exceptions18
Creates the Certified Microgrid Development Program within the Division of Economic Development to encourage the construction, operation, maintenance, and expansion of qualifying high-impact plants and facilities where dedicated electricity is necessary. creates the Certified Microgrid Development Program
Allows the Commerce Secretary to certify microgrid districts of up to 2,250 nearly contiguous acres that are expected to produce significant economic benefits and attract at least two businesses. Certification is generally limited to two districts, but the limit does not apply when more than 70% of the district's electricity is consumed by high-impact data centers. may not be more than two microgrid districts
Permits electricity providers in a certified microgrid district to avoid Public Service Commission jurisdiction over rates, certificates of convenience and necessity, service conditions, and complaints; avoid state net-metering and interconnection standards; and elect exempt-wholesale-generator treatment without specified state siting certificates. Electricity must generally be used inside the district or sold to the wholesale market, with no more than 10% delivered outside the district. not be subject to the jurisdiction of the Public Service Commission
Defines eligible microgrid customers as new electric load, including facilities making a capital investment in a new facility, and allows them to operate without connecting to or using a public electric utility. Temporary utility service used for initial construction does not destroy new-load eligibility. is not required to connect with and use any public electric utility
Allows certified microgrid customers and districts to obtain special utility contracts with rates and terms different from filed tariffs. After up to 120 days of negotiations, the customer or district may petition the Public Service Commission, which must establish a contract, including backup and supplemental service, within 90 days; uncovered load is treated as non-firm and interruptible. shall establish a special contract
Protects ordinary regulated utility customers from paying costs associated with generation, transmission, distribution, ancillary services, energy, or capacity facilities serving a microgrid district. Those costs must be paid by the generator or electricity consumers inside the district. Regulated electric utility customers shall not bear any costs
Exempts qualifying microgrid projects producing at least 300 megawatts, or projects that will have no connection to the local distribution utility after construction, from the 120-day pre-application negotiation and notice requirement. does not apply to microgrid districts proposing to produce 300 megawatts or more
Requires confidential treatment of a proposed microgrid project's letter of intent and its economic, financial, and engineering information, including its acreage, capital investment, generation capacity, power needs, and project schedule. The letter of intent and all supplied information shall be held in confidence
Prevents counties and municipalities from adopting or enforcing rules that limit the creation, construction, expansion, or operation of certified microgrid districts or certified high-impact data centers. It specifically removes local zoning, noise, viewshed, lighting, land-use, building-permit, inspection, code-enforcement, licensing, and similar local requirements, subject to the statute's exceptions. prohibits counties and municipalities
Requires the Commerce Secretary to designate a Data Economy Liaison as a single point of contact to coordinate and expedite certified project development and operation, including site selection and permitting. serve as a single point-of-contact
Authorizes the Commerce, Environmental Protection, and Transportation departments to support certified projects, including by developing or improving highways, roads, thoroughfares, and sidewalks serving project locations. may take actions necessary in support of the development
Creates a High Impact Data Center Program and requires the Commerce Secretary to certify a data center that satisfies the statutory definition. A data center must notify the Division of Economic Development within 30 days after determining that it qualifies, and the Secretary must issue certification confirmation within 14 days after receiving the notification. shall issue confirmation of certification
Protects confidential business information submitted by data centers from disclosure under the Freedom of Information Act, while requiring the state to maintain a non-identifying list of certified high-impact data centers. shall be exempt from the Freedom of Information Act
Limits project utility impact fees to the extent that the utility must actually make capital additions, betterments, or improvements to serve the project, and bars customers outside a microgrid district from paying construction or operating costs for utility property built solely to serve the district. only be required to pay any capacity improvement fee or impact fee
Grandfathers microgrid districts certified on or before January 1, 2024, and special contracts approved by the Public Service Commission on or before January 1, 2025, from specified 2025 requirements; the amendments may not be interpreted to remove an existing certification. shall not apply to any microgrid district certified on or before January 1, 2024
Creates a special tax-increment distribution system for certified high-impact data centers. When current assessed value exceeds the base assessed value, 50% of the resulting increment goes to the Personal Income Tax Reduction Fund, 30% to the project's situs county, 10% to all counties by population, 5% to an economic-enhancement grant fund, and 5% to the Electric Grid Stabilization and Security Fund. 50 percent of the increment
Creates the Electric Grid Stabilization and Security Fund, which may support grid stabilization, grid security, generation maintenance, efficiency and environmental upgrades, and transmission resources serving West Virginia ratepayers. provide support for electric grid stabilization
Requires the Public Service Commission to review generating-unit economics, directs utilities to maintain thermal baseload units so they can achieve at least a 69% capacity factor when doing so does not increase charges, and requires Commission approval before a utility can retire or permanently close a generating plant or unit. may not retire, abandon, close, or otherwise permanently render incapable of operating
Sources
failed · StatewideThe supplied introduced bill text would address local regulation of certified microgrid districts and certified high-impact data centers, including restrictions on county and municipal measures affecting their creation, construction, expansion, and operation.West Virginia HB 4832 (2026)
What this means
For high-impact data centers, the bill adds water-use reporting and review, and lets the state limit or block withdrawals that could harm water resources (water-use review and limits). It also requires a public hearing and at least 30 days for comments before final approvals, adding some delay and burden (public hearing and comment period).
People behind it
- Delegate Hansen
Lead sponsor and one of the delegates introducing the bill.
- Delegate Young
Co-sponsor and one of the delegates introducing the bill.
- Delegate Hamilton
Co-sponsor and one of the delegates introducing the bill.
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- Delegate Williams
Co-sponsor and one of the delegates introducing the bill.
- Delegate Garcia
Co-sponsor and one of the delegates introducing the bill.
- Delegate Hornbuckle
Co-sponsor and one of the delegates introducing the bill.
- Delegate Pushkin
Co-sponsor and one of the delegates introducing the bill.
- Delegate Lewis
Co-sponsor and one of the delegates introducing the bill.
- Delegate Fluharty
Co-sponsor and one of the delegates introducing the bill.
- West Virginia Legislature
Legislative body proposing and considering the measure.
- Division of Economic Development
Administers the High Impact Data Center Program.
- Secretary of the Department of Commerce
Certifies high impact data centers and designates a Data Economy Liaison.
- Department of Commerce
Assists certified projects, conducts public hearings and comment procedures, and maintains public project information.
- Department of Environmental Protection
Receives and evaluates high impact data center water-use analyses, conducts water-resource reviews, and may limit, condition, or prohibit withdrawals.
- Secretary of the Department of Environmental Protection
Determines whether proposed water use may adversely affect state water resources or occur within a critical water planning area.
- Department of Transportation
Participates with the Departments of Commerce and Environmental Protection in required public hearings and may support related infrastructure development.
Restrictions & requirementsHide restrictions & requirements12
Before certification, the owner of a proposed high-impact data center must submit the Department of Environmental Protection an analysis of its potential water-quantity and water-quality impacts, including projected monthly withdrawals and returns, water-source locations, withdrawal and return coordinates, applicable water-resource designations, and any required discharge permit and pollutants.
The Department of Environmental Protection may limit, condition, or prohibit a high-impact data center’s use of a state water resource if the use is in or would create a critical water-planning area or would adversely affect existing or future uses of the resource.
A data center that meets the statutory high-impact definition and receives the required water-resource certification must notify the Division of Economic Development within 30 days after determining that it qualifies. A center that reasonably anticipates qualifying later may also be required to provide notice identifying the anticipated date.
High-impact data centers must obtain certification from the Secretary of Commerce after the department verifies that the statutory requirements have been completed.
Before any final agency approval, permit, or certification for a proposed high-impact data center, the Departments of Commerce, Transportation, and Environmental Protection must jointly hold at least one public hearing in the county where the project will be located.
The proposed project is subject to public notice requirements, including a Class II legal advertisement and website notice, publication of project information and nonexempt documents on a public website, and a public-comment period of at least 30 days after the hearing. The agencies must consider submitted comments before issuing final approval, a permit, or certification.
Every certified high-impact data center is treated as a large-quantity water user regardless of the amount of water it withdraws, subjecting it to the state’s water-withdrawal registration and survey requirements unless it purchases water from a utility or other service that reports the total withdrawal.
High-impact data centers subject to the water survey must provide available information on stream-flow conditions, seasonal withdrawals, future maximum potential withdrawals, and changes to intake or discharge locations, and must annually maintain registration in the form required by the Department of Environmental Protection.
Certified high-impact data centers must report actual monthly water withdrawals, or withdrawals calculated by a method approved by the Secretary of the Department of Environmental Protection, by March 31 of each year for the preceding calendar year.
The water-resources management plan must analyze the individual and cumulative water withdrawals and returns of certified high-impact data centers that reported prior-year water consumption, including effects on water quality and existing uses such as public water supplies, agriculture, industrial uses, aquatic life, and downstream users.
Certified high-impact data centers must pay applicable municipal business and occupation taxes, municipal sales and use taxes, property taxes, municipal service fees, and utility charges, including water, sewer, stormwater, and garbage or recycling charges. Capacity or impact fees may apply to the extent the utility must make capital improvements to serve the project.
Certified high-impact data centers must be designed, acquired, constructed, and equipped under the State Building Code and applicable state building-code rules.
Benefits & exceptionsHide benefits & exceptions11
Creates the High Impact Data Center Program within the Division of Economic Development to encourage the development, construction, operation, maintenance, and expansion of high impact data centers, and authorizes legislative or emergency rules for the program.
Requires the Department of Commerce to assist certified high impact data centers and designate a Data Economy Liaison as a single point of contact to coordinate and expedite development and operation, including site selection and permitting.
Prevents counties and municipalities from enacting or enforcing ordinances, regulations, or rules that limit the creation, acquisition, construction, equipping, development, expansion, or operation of a certified high impact data center.
Exempts certified high impact data centers from county and municipal zoning, land-use, development, noise, lighting, viewshed, and similar local restrictions or approvals.
Exempts certified high impact data centers from county and municipal building permits, inspections, code enforcement, and local license requirements.
Limits county and municipal legal jurisdiction over certified high impact data centers and removes requirements for municipal consent or approval of specified state or county actions, including tax-increment-financing districts and plans.
Requires utility rates, fees, and charges for services to certified high impact data centers to be based on the cost of providing the service and to be established through a contract filed with the Public Service Commission.
Limits a certified high impact data center’s obligation to pay capacity or impact fees to situations where the utility must make capital additions, betterments, or improvements to serve the project, and prevents other utility customers from bearing costs for utility property built solely to serve the project.
Allows the Department of Commerce, Department of Environmental Protection, and Department of Transportation to take actions supporting certified high impact data centers, including developing or improving highways, roads, thoroughfares, and sidewalks serving the project.
Allows certified high impact data centers to use the State Building Code instead of county or municipal building requirements.
Protects information identified by a data center as confidential business information from disclosure under the Freedom of Information Act, while requiring identifying information to be removed from lists made available to the Governor and Legislature.
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