This year’s legislative session saw the passage of a number of bills that further position West Virginia as America’s energy state. Of these bills, one of the most prominent was the Power Generation and Consumption Act (House Bill 2014) that will support the development of microgrids across the state. This forward-thinking policy is a major win for energy security, reliability and economic competitiveness in the Mountain State.

Enabling streamlined microgrid development will leverage West Virginia’s vast natural gas reserves to capitalize on industrial and technological advancements and position our state to continue leading America’s energy and economic future.

But what exactly is a microgrid, and why does it matter?

What Are Microgrids?
A microgrid is a local energy system capable of operating independently or in conjunction with larger power grids. Microgrids often rely on local energy sources like natural gas, solar power or battery storage, making them a resilient and efficient solution for critical infrastructure, industrial sites and rural communities.

As AI and cloud services continue to advance, tech companies, including Meta, Google and Microsoft, are co-locating their data centers with microgrids powered by nearby energy sources. At a recent GO-WV hosted roundtable, Pete Hollis, Chief Development Officer at Fidelis, underscored that AI adoption presents “a huge opportunity for utilization of West Virginia resources, but on top of that, it’s also a huge opportunity for investment and jobs in West Virginia.”

Why They Matter for West Virginia
With a strong natural gas foundation and growing interest in advanced energy infrastructure, West Virginia is uniquely positioned to lead in microgrid development. These systems provide:

  • Operational Flexibility – New large energy users want the optionality of being able to source their own electricity while also being able to pull from the grid as suits their purposes.
  • Economic Development: They attract private investment and support local energy generation by opening the door for more natural gas usage in West Virginia’s electricity sector. This boosts in-state job and investment opportunities across the value chain.
  • Environmental Benefits: With more efficient energy usage and emissions reductions, microgrids support broader environmental goals.

Tax Revenue: As Data Centers choose to located here, they bring very significant property tax revenue for state and county governments. That means better public services for residents, and a path toward a reduction in the income tax burden for West Virginians.

What is House Bill 2014?
House Bill 2014 includes incentives for microgrid development, streamlined permitting processes and clearer regulatory pathways for energy producers and end-users. It also opens the door for more flexible energy use, especially for commercial and industrial operations looking to modernize.

Microgrid development will support critical energy infrastructure investments across West Virginia, as well as encourage increased natural gas development to support rapidly rising power needs. As a result, this policy incentive combined with the state’s abundant natural gas uniquely positions our communities to leverage the tax revenue from AI and data center development for generational economic and job opportunities.

“We thank the Legislature for advancing policies that strengthen West Virginia’s economy and energy future. From microgrid development incentives to streamlined permitting, forward-thinking well-plugging reforms, and expanded carbon storage capabilities, these actions give us a strong competitive advantage and further position us as America’s energy state. At the center of it all is natural gas – a resource that delivers jobs, revenue, and private investment with no burden on taxpayers,” said GO-WV President Charlie Burd.