Data Centers in West Virginia
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West Virginia – Cost-Effective Power & Tax Incentives
Executive Summary
West Virginia is an emerging market for organizations prioritizing low operational costs and significant tax advantages. Its combination of affordable power and robust, data-center-specific incentives makes it a compelling choice for compute-intensive workloads or secondary disaster recovery sites, securing long-term financial predictability.
West Virginia: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Reliable regional connectivity, not a primary national hub. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | Nearest hubs are in Northern Virginia. Private connectivity is available. |
| Power Cost | $0.06 - $0.08 / kWh, as of September 2025 | Highly competitive rates driven by a coal-dominant energy mix. |
| Disaster Risk | Moderate (30.93 NRI Score), as of September 2025 | Low national ranking; main risks are weather-related, not seismic. |
| Tax Incentives | Yes | Data center-specific exemptions on sales, use, and property taxes are available. |
| Sales Tax | 6.00%, as of September 2025 | State base rate; exemptions may apply for qualifying data center equipment. |
Network & Connectivity Ecosystem
Carrier Density & Carrier Neutrality: The state has 3 data centers with service from at least 2 unique network providers, as of September 2025. The market is focused, providing access to key regional and national carriers for diverse connectivity.
Direct Cloud On-Ramps: There are no public cloud on-ramps located directly within West Virginia, as of September 2025. Direct cloud access is primarily achieved via dedicated network connections to the major hyperscale hubs in Northern Virginia.
Internet Exchange Points (IXPs): Public peering is limited within the state. Most network interconnection is handled privately or through major exchanges in nearby markets like Ashburn, VA, to ensure efficient traffic exchange.
Bare Metal: Bare metal services are available, offering dedicated compute for performance-sensitive applications. Providers like Hivelocity can serve the region, providing an alternative to traditional virtualized infrastructure.
Power Analysis
Average Cost Of Power: Industrial electricity rates in West Virginia are estimated to be between $0.06 and $0.08 per kWh, as of September 2025. This competitive pricing, driven by a grid dominated by coal-fired generation (86%), significantly lowers operational costs for high-density deployments.
Power Grid Reliability: The state's power infrastructure is well-established. Data center locations are typically supported by redundant feeds and connections to multiple substations to ensure high levels of uptime.
Market Access, Business & Tax Climate
Proximity To Key Business Districts: Data centers in West Virginia serve as strategic secondary sites for organizations in the Mid-Atlantic and Ohio Valley. They offer geographic diversity from primary hubs like Northern Virginia while maintaining proximity.
Regional Market Reach: West Virginia provides low-latency connectivity to major population centers across the Eastern United States. This includes Washington D.C., Pittsburgh, and Columbus, making it a viable point of presence for serving the region.
Tax Advantage For Data Centers: The state offers significant financial relief through its Powered Data Center Incentive Act, which provides sales and property tax exemptions on equipment. These incentives create a highly favorable environment for capital-intensive data center projects.
Natural Disaster Risk
West Virginia has a Moderate natural disaster risk profile, with a National Risk Index score of 30.93, as of September 2025. The primary environmental threats are atmospheric and geological, including riverine flooding, landslides, strong wind, and winter weather. The state has a very low risk of major seismic events or direct hurricane landfalls, making it a stable location from a geological standpoint.
