CHARLESTON, W.Va. (WCHS) — West Virginia leaders are pushing to attract large data centers across the state, including sites in Mason County and Putnam County, citing growing demand for artificial intelligence and data storage and the potential for major economic gains.
State officials maintain the projects could bring billions of dollars in investment while forecasting increased tax revenue that could support local services.
“We’re talking multi-billion dollar investment,” said Del. Kathie Hess Crouse, R-Putnam. “When that comes about and you start receiving the personal property taxes from that, we are looking at millions of dollars going toward our emergency services, millions of dollars going toward our school levies.”
However, some experts caution the long-term economic benefits may be limited.
“Most or many of the jobs that are created are temporary,” said Kelly Allen with the West Virginia Center on Budget and Policy. “The biggest job is related to the construction, and then there are typically few permanent jobs. Those don’t necessarily go to local West Virginia workers.”
Questions also remain about who will benefit most from the investment. While data centers can generate significant property tax revenue, a recently passed law could shift much of that money away from local communities.
In 2025, West Virginia lawmakers approved House Bill 2014, which allows the state to collect most of the property tax revenue from data centers. Experts say that could leave counties, municipalities and school districts with less direct economic impact than expected.
Beyond economics, environmental concerns are also being raised — particularly around water usage.
The West Virginia Department of Environmental Protection requires large water users to report their usage annually. State leaders said companies must submit environmental and engineering plans.
“They’ve submitted detailed engineering and environmental plans, and they’re working on water and mitigation strategies,” Gov. Patrick Morrisey said. “There’s a long-term commitment to responsible development. We’re going to have plans to limit the noise. We’re going to do it the right way from a water perspective.”
Still, some critics say oversight may not go far enough. Reporting requirements occur after water is used, and there are currently no caps on consumption.
“Large-scale data centers could consume up to 5 million gallons of water a day in some scenarios,” Dr. Nathaniel Hitt with the WV Rivers Coalition. “Local communities simply do not know whether that’s going to be the situation for their local data center, because there’s no transparency for what amount of water will be used or from where that water will come.”
As more projects are proposed across West Virginia, experts say key questions remain about their long-term impact on local economies, natural resources and whether the promised benefits will fully materialize.
