Program Overview

West Virginia’s Power Generation and Consumption Act, effective July 1, 2025, enhances the state’s attractiveness for large-scale data center investment . Established under West Virginia Code § 11-6N-2, the act is part of the new High-Impact Data Center Program, which provides a defined pathway for qualifying facilities to receive development and tax advantages. The legislation removes local land use obstacles, offers favorable property tax valuation, and ties tax revenue from these projects to a public fund aimed at reducing personal income taxes—delivering both economic and community value.

Benefits

  • Streamlined Land Use Approvals – Designated data centers are exempt from certain local land use restrictions, reducing permitting delays and accelerating project timelines.
  • Favorable Property Tax Valuation – Facilities meeting program requirements may receive preferential property tax treatment, lowering long-term operational costs.
  • Personal Income Tax Reduction Fund – Property tax revenues from high-impact data centers are directed to a dedicated state fund to reduce personal income tax, providing a broader public benefit.

Eligibility

To be certified as a High-Impact Data Center, a facility (or group of interconnected facilities) must meet all the following criteria:

  • Be primarily dedicated to data processing, storage, or communications functions
  • Have a critical IT load of at least 50 megawatts (MW)—defined as the electricity used by servers, networking equipment, and related infrastructure (excluding total facility usage)
  • Be placed into service on or after July 1, 2025
  • Be designated by the West Virginia Secretary of Commerce under the terms of the act

Application Deadline and Timeline

  • No fixed application window is specified, but designation must be secured after July 1, 2025, and prior to facility development or operational launch to fully benefit from the provisions
  • Developers should work proactively with the West Virginia Department of Commerce to initiate the designation process and secure local and state alignment early in their project timeline

Conclusion

The Power Generation and Consumption Act affirms West Virginia’s strategic commitment to advancing digital infrastructure while balancing fiscal responsibility and public benefit. By defining clear qualification standards and easing development burdens, the state positions itself as a strong contender in the national competition for high-impact data center projects.

COMPLIMENTARY PROJECT ELIGIBILITY REVIEW

Get expert insights into how your upcoming capital investments could qualify for significant tax savings under this and other similar programs. Our complimentary project review will help you identify opportunities to reduce costs and optimize your investments.  

Contact DMA today for expert guidance on tax credits, grants, loans, and other economic development tools. Our DMA Credits & Incentives team can help you navigate eligibility, applications, and compliance to secure funding for your business investments. 

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