Data center rule amended, returns to House
By Stephen Baldwin, RealWV
CHARLESTON, WV – The West Virginia Senate joined the House of Delegates on Wednesday, approving a new rule related to how data centers operate within the state by a vote of 28-6. But because they made an amendment, the full rule will now return to the House for another vote in this final week of the legislative session.
In 2025, legislators approved HB 2014, the “Power Generation and Consumption Act of 2025.” As reported then by Autumn Shelton, the bill:
- Allows any plant or facility to participate in the business expansion development program.
- Removes the requirement that microgrid development districts be located on certain lands.
- Eliminates the requirement that electrical service to business development districts be generated from renewable sources.
- Regulates the production of electricity within microgrid districts to foster new energy production while protecting longstanding utilities.
- Provides for the certification and regulation of high impact data centers at the state level (with no local control).
- Reapportions tax revenue to reinvest in West Virginia.
- Establishes the Electronic Grid Stabilization and Security Fund.
- Establishes the Personal Income Tax Reduction Fund.
- Requires the Public Service Commission to take steps to future-proof West Virginia’s grid.
The Rule-Making Process
But the passing of HB 2014 was only the first step in the process. Once a bill is passed, the agencies responsible for enacting that law must file any necessary rules (specific regulations related to the original law change) with the Secretary of State, receive public comment on those rules, and then gain approval of the rules from the Legislative Rule-Making & Review Committee (LRMRC).
In total, 935 people submitted comments about the rules surrounding HB 2014, centered on the impact of data centers to communities.
To read those comments, click here.
The commenters expressed concerns in five major areas: economic, environmental, public transparency, local control, and infrastructure. Members of LRMRC received a report from the Department of Economic Development further explaining the nature of the objections:
“Transportation and Road Network: Multiple requests for developers to disclose anticipated traffic volumes and vehicle weights for both the construction and operational phases. Concerns that heavy industrial traffic will degrade local roads, with no clear mechanism to ensure developers cover the cost of repairs.
Water and Wastewater Management: Repeated concerns that water extraction and construction in karst (limestone) areas could destabilize the ground or contaminate local aquifers. Many comments note fears that massive cooling requirements and wastewater discharge will overwhelm public water management agencies and deplete local groundwater supplies.
Emergency Services Infrastructure: Commenters request for the disclosure of specific needs for fire, police, and medical services. Concerns that local volunteer departments lack the infrastructure, training, or equipment to handle industrial-scale incidents, specifically citing risks like massive on-site fuel storage (e.g., 30 million gallons of diesel).
Utility and Grid Infrastructure: Commenters expressed concerns that §145-20-2.4 allowing “microgrid districts” to include properties up to one mile apart (noncontiguous) will result in inefficient, sprawling installation of fiber and utility lines. Commenters requested that data centers pay for their own grid reinforcements to prevent strain on the existing electrical infrastructure used by residents.
Community Infrastructure (Schools & Housing): Commenters expressed concerns that the influx of workforce or related development will strain local housing availability and lead to overcrowding in public schools.”
The LRMRC passed the rules despite the objections, and placed control of the program with the state via the Secretary of Economic Development.
2026 Legislative Session
Because all rules require legislative approval in West Virginia, legislators voted on the data center rules this session via HB 4983. It passed the House by a vote of 78-16, with the no votes coming from both Republicans and Democrats. Two amendments meant to provide additional accountability to the rule were rejected.
One amendment, offered by Del. Evan Hansen, D-Monongahela, would have required data center developers to disclose where they would get water and how much they intended to use. It was defeated by a vote of 23-70.
Another amendment, offered by Del. Chris Anders, R-Berkeley, and Del. Henry Dillon, R-Wayne, would have required public information on data center projects be published in local newspapers, required buffer zones around data centers, and specified which water sources data centers could use in communities. It was defeated by a vote of 6-87.
The bill then went to the Senate, where it passed by a vote of 28-6 on Wednesday. The Senate Judiciary Committee did add a clause that changed the definition of “inordinate burden” in the rule, a controversial idea which has stirred much of the debate around data center regulation.
The rule approved by the House read, “‘Inordinate Burden’ means a parcel’s use is so severely restricted that it deprives the owner of nearly all of its economically beneficial use.”
The Senate added a clause about water to the end, so that the rule now reads, “‘Inordinate Burden’ means a parcel’s use is so severely restricted that it deprives the owner of nearly all of its economically beneficial use or access to water.” This change in language, according to Sen. Tom Willis, R-Berkeley, was meant to assuage concerns about water usage by data centers. However, the amendment only requires data center developers to study the issue; their results would remain private.
Sen. Rupie Phillips, R-Logan, who is widely seen as a pro-coal legislator, criticized that amendment on the floor Tuesday during remarks.
He asked Willis a question after Willis explained the amendment. “Are you saying this could restrict the amount of water that could be used or consumed, or whatever?”
“This amendment requires that access to water is included in a study,” said Willis
“Mr. Chairman, I’m going to have to speak ‘no’ against a bill with this language in there, I think, that could affect a lot of other industries. Thank you.”
Phillips and four other Republican senators who frequently vote together on coal issues proceeded to vote against the data center rule on Wednesday.
Because the rule has changed, it will now have to go back to the House for approval or further modification. Stay tuned to RealWV for updates on this pending legislation. The legislation session ends on Saturday night.
