West Virginia Senate advances House Bill 2014 to establish microgrid program for data centers

The West Virginia Senate advanced the Engrossed Committee Substitute for House Bill 2014, aimed at establishing a certified microgrid program, during its session on April 11, 2025. This bill is designed to attract high-impact data centers to the state, potentially generating billions in investment and boosting tax revenues.

The bill's primary focus is to facilitate the development of microgrid districts, which will allow data centers to operate more efficiently. A key provision ensures that over 70% of the electricity generated within these microgrids will be consumed by one or more data centers. Importantly, the legislation stipulates that utility customers will not bear any costs associated with the construction or operation of the microgrid facilities, meaning their utility bills will remain unaffected by the presence of new data centers.

The proposed amendments also include a detailed tax structure for properties owned by data centers and microgrids. Tax revenues will be allocated according to a specific formula, with 55% directed to the personal income tax fund to mitigate revenue losses from income tax reductions. Additionally, 30% of the revenue generated in each county will be returned to that county, while 5% will support the state road fund and another 5% will go towards the grid stabilization fund, which is crucial for maintaining and upgrading the electric grid.

The bill also refines the certification process for microgrid districts and clarifies related statutes, ensuring a streamlined approach to implementing this ambitious program. As the Senate continues to discuss this legislation, its potential impact on West Virginia's economy and energy landscape remains a focal point of interest.