# Data center development and taxation in West Virginia

> Live situation record from CLSTR: https://clstr.news/situations/data-center-development-and-taxation-in-west-virginia
> Updated: 2026-09-04T20:30:00.000Z. Sources: 21. Developments: 2.

In Westover, local officials and business leaders are exploring economic development strategies, including potential tax reductions for legacy businesses in specific redevelopment zones. Concurrently, the community is debating a proposed six-month moratorium on data center construction to address concerns regarding land use, water consumption, and energy grid impacts.

At the state level, West Virginia Governor Patrick Morrisey has introduced legislation to use revenue from hyperscale data center projects to reduce or eliminate the state’s personal income tax. The proposal suggests allocating 50 percent of revenue from approved High Impact Data Center Designation (HIDC) projects toward income tax relief, with the remaining funds distributed among host counties, all 55 counties, and infrastructure. 

This legislative push has evolved into a proposed 20-year development strategy. However, the industry faces intensifying backlash as critics argue that massive AI data centers consume vast resources while providing minimal long-term employment compared to traditional facilities. Beyond environmental and resource concerns, new debates have emerged regarding public health. Critics and researchers have highlighted potential risks such as increased utility costs, noise, light pollution, and air quality issues stemming from construction and backup generators. Officials have noted a lack of established guidance and long-term epidemiological research to fully understand the health impacts on residents living near these large-scale facilities.

This tension reflects a broader national trend of growing public and political opposition to AI data centers. An NBC News poll indicates that 69% of respondents oppose the construction of such facilities in their local areas, while 70% of Americans express reluctance to have them near their homes. Similar health and environmental concerns have surfaced in Pima County, Arizona, and through legal actions against xAI in Tennessee regarding air pollution.

## Claims

- Elon Musk’s xAI is facing a lawsuit in Tennessee regarding air pollution caused by its data centers. (corroborated by 6 sources)
- An NBC News poll found 69% of respondents oppose the construction of AI data centers in their local area. (single source)
- A Fox News poll reported that seven out of ten Americans do not want data centers built near their homes. (single source)
- West Virginia Governor Patrick Morrisey proposed using 50% of revenue from approved hyperscale data center projects to reduce or eliminate state personal income tax. (single source)
- A Pima County review suggests large data centers may cause increased heat, air pollution, and noise for neighboring areas. (single source)
- A poll found 60% of Minnesotans oppose data centers. (single source)
- Donald Trump stated that communities opposing data centers risk becoming 'backwards and poor.' (single source)
- Loudoun County, Virginia, saw a 17.4% increase in total employment following its openness to data center growth. (single source)

## Timeline

### 2026-09-04: AI Data Centers face growing public opposition and political debate in the U.S

Public opposition to AI data centers is rising across the U.S. due to environmental and health concerns, despite political efforts in states like West Virginia to use data center revenue for tax relief.

21 sources. https://clstr.news/cluster/west-virginia-proposes-using-data-center-revenue-to-eliminate-income-tax

### 2026-08-17: Westover officials weigh business tax relief and data center moratorium

Westover officials are considering economic incentives for legacy businesses and hosting a town hall to discuss a potential moratorium on data center construction.

3 sources. https://clstr.news/cluster/westover-officials-weigh-business-tax-relief-and-data-center-moratorium

---
Cite as: Data center development and taxation in West Virginia. CLSTR, https://clstr.news/situations/data-center-development-and-taxation-in-west-virginia