In a major win for Governor Patrick Morrisey’s economic agenda, West Virginia lawmakers gave final approval to a bill designed to attract high-impact data centers by allowing them to build and operate their own energy systems, known as microgrids.
The bill, House Bill 2014, was passed during the final hours of the regular legislative session and aims to speed up the timeline for new data centers to become operational by offering energy independence. Supporters say it could transform West Virginia into a hub for data-driven industries.
“This opens up big opportunities,” said Senate Economic Development Chairman Glenn Jeffries, R-Putnam. “These companies want power fast—within 16 to 18 months—and this bill gives them that option. And importantly, the cost won’t fall on the average ratepayer.”
The Senate passed the final version of the bill in a 32-1 vote. The lone vote against it came from Senator Rupie Phillips, R-Logan, who voiced concern that if large-scale users like data centers bypass public utilities, it could leave regular customers with higher bills.
“I’m not voting for something that leaves my people paying more,” Phillips said. “This is for Mamaw,” referring to a term he often uses to represent the everyday West Virginian.
Earlier in the day, House lawmakers made changes to the bill, especially regarding how revenue from the new developments would be distributed. The proposed breakdown includes:
- 50% to a personal income tax reduction fund
- 30% to the county (or counties) where the data center is located
- 10% distributed to all counties based on population
- 5% for an economic enhancement grant fund
- 5% for an electric credit stabilization and security fund
Some legislators, like Delegate Evan Hansen, D-Monongalia, praised the changes but expressed concern that cities and school districts still might not benefit enough.
“I’m glad counties are included now, but our municipalities and schools were left out,” Hansen said.
The bill establishes a Certified Microgrid Program and a High Impact Data Center Program, allowing the Department of Commerce to designate specific areas for development. These certified districts will be open to industrial projects that bring new electric demand—and developers will be allowed to build localized power systems to serve them.
Governor Morrisey hailed the legislation, saying, “This bill will dramatically boost West Virginia’s role in data-focused development, raise our standard of living, and help reduce income taxes. It’s the economic development bill of the session.”
But not everyone is convinced.
Delegate Shawn Fluharty, D-Ohio, pointed to rising utility bills across the state. “We’re handing out benefits to big tech, but we’re not helping the people at home who are struggling to pay their electric bills,” he said. “Other states attracted data centers without handing out microgrid privileges. Why can’t we?”
Delegate Marty Gearheart, R-Mercer, also opposed the bill, arguing that data centers don’t need microgrids and questioning the impact on everyday consumers. “I’m voting no for the guy who opens his power bill and sees it creeping higher every month,” he said.
Supporters say the bill could give West Virginia an edge in the growing data economy—especially as demand for AI, cloud services, and advanced computing continues to rise.
Delegate Daniel Linville, R-Cabell, summed up the vision: “We want West Virginia to be the most impactful place in the country for data centers—and this bill helps us get there.”
With the bill now heading to the governor’s desk, West Virginia is betting big on becoming a national player in the digital economy—powered by its own innovation.
