Local Government Data Center Oversight Becomes Flashpoint in State Capitols

State and local governments are clashing over oversight of data center development. In West Virginia, a law enacted last year enables data centers to operate in certified microgrid districts independent from the main electrical grid. The legislation prohibits local officials from providing input on the placement of such off grid facilities. Resident groups in Tucker County have pressed the legislature to reconsider preemption provisions. Some state senators have called for greater local government control over data centers. The House recently passed a bill requiring developers to indicate potential harm to nearby residents, though it stops short of restoring local authority. Arizona shows similar divisions. The Chandler City Council rejected a proposed data center last December. Governor Katie Hobbs now supports repealing tax breaks for data centers and imposing a water usage fee, while the legislature has advanced some bills on grid costs and nuclear reactors but rejected others amid cross party opposition.