The data center debate isn’t going so well for the builders, as Americans far and wide seriously oppose the construction of new data centers near where they live. One state, however, thinks it can incentivize residents.
Virginia Gov. Patrick Morrisey (R) has unveiled seven principles aligned with 2025 legislation to reduce and eventually eliminate state income tax. Under the plan, West Virginia would set aside 50% of its revenue from approved hyperscale data center projects towards the elimination of the state personal income tax – though let’s be clear: the poor, rural residents they’ll be building the DCs next to don’t pay income tax – so no benefit to them. Middle class voters (and up), however, will have all sorts of reasons to support the move.
“Today, as the world stands on the cusp of a new digital and economic frontier, West Virginia is stepping forward once again to lead, not by repeating the mistakes of other states, but by implementing a proactive, 20-year development strategy on our terms,” Morrisey said in a statement obtained by Fox News.
The second listed “principle” in Morrisey’s plan says all West Virginians should benefit from data center projects approved through Charleston’s “High Impact Data Center Designation (HIDC)” process and the revenue they generate. The process was established under a separate 2025 state law.
Morrisey’s plan includes “direct tax relief for citizens,” with none of the HIDC revenue entering the state general fund.
“By law, 50 percent of project revenue is dedicated directly to reducing and ultimately eliminating the State Personal Income Tax,” reads the plan.