Data centers a hot topic in Congressional, state elections

Parsi pitches moratorium, Moore co-sponsored bill to regulate

PARKERSBURG - The Democratic challenger for one of West Virginia's Congressional seats pitched legislation on Friday establishing a two-year moratorium on new, large data centers and giving local communities a say in whether they're built.

Ace Parsi, a Morgantown community organizer running for the District 2 U.S. House of Representatives seat occupied by Rep. Riley Moore, said the proposed Neighbors, Not Servers Act would be "the very first piece of legislation that I would introduce as a member of Congress."

Moore said in a statement Friday that "West Virginians need a voice in this important debate" and he has cosponsored legislation to that effect.

Parsi said the impact of data centers on the environment, communities and utility costs is an issue he's heard about from Democratic, Republican and independent voters alike.

"Our communities do not have a say in whether these things go in our backyards," he said, referencing transmission lines as well.

The legislation would pause new construction of data centers using 20 megawatts or more of power, according to a release from Parsi. During that time, the National Academies of Sciences, Engineering and Medicine would conduct studies into the effects of such facilities on public health, water, jobs, utility bills, property values and the power grid.

It proposes a fine of up to $1 million a day for developers who break the pause.

The bill would also ban nondisclosure agreements between developers and public officials, including those already in place. NDAs signed by Washington County officials for a proposed data center in the Waterford area have been a source of concern and debate there. Commissioners have said such agreements are standard for preliminary conversations about potential development and signing allowed them to enter into conversations with the developers.

Parsi's proposed bill would also establish a referendum process so community members could seek a vote on approving construction of a data center. Prior to a vote, developers would be required to disclose information such as who is behind the project, who will use it, how much power and water it will use, noise levels, tax breaks sought and number of jobs it will create, the release said.

Parsi said during an online press conference Friday that a public vote would not be mandatory, as local bodies like county commissions could make the call as representatives of residents.

"We would direct those (federal) agencies to not give those permits (for data center construction) until they made sure the community" had a voice in the process through one of those mechanisms, he said.

"The local people need to be able to determine this," Parsi said. "This bill is not about big government."

Moore said in a statement that "it is critical that America wins the AI race against countries like China, but we must do so responsibly.

"I'm for local control. Local communities need to have a say about whether to build data centers in their backyard, and we need to ensure that Americans are not being forced to foot the bill for increased energy demands and water usage," he said. "That’s why I proudly cosponsored and voted for the Ratepayer Protection Act in the House to ensure that local communities have a voice in these important decisions and ensure that West Virginians are not being forced to foot the bill for data center development."

Moore announced in an Aug. 31 press release he was cosponsoring that bill, which would "require state public utility commissions to consider standards ensuring that large data centers pay the full incremental costs associated with generation, transmission, and distribution upgrades needed to serve their electricity demand." It adds that the bill would protect ratepayers while preserving the authority of state regulators to determine how its standards were implemented.

Asked how the proposed pause would affect the technological tasks data centers support, Parsi said additional large data centers are not necessary to meet the need.

"(We hear) a bunch of scare tactics that are coming from Silicon Valley," he said. "That urgency is based on their profit, not our well-being."

Data centers are also a topic of interest in Ohio's gubernatorial election. Democratic nominee Dr. Amy Acton this week called for the state Legislature to enact a conditional moratorium on data centers, including prohibiting data centers and investors from passing along costs to ratepayers, banning their use of NDAs and requiring them to be built with union labor, maintain zero environmental impact and prioritize the use of brownfield sites. In the release, she also criticized Republican nominee Vivek Ramaswamy's investments in data centers.

"I am calling on lawmakers from across the aisle to come together and fight against the unchecked development of data centers driving up costs in our communities," Acton said. "I will always put the needs of working families over the wants of billionaires, corporations and special interests."

Ramaswamy's campaign website lists three "non-negotiable" requirements for companies wanting to build data centers in Ohio: Ensure nearby families receive free electricity by providing power or compensation, pay their full property taxes so revenue can be used to provide relief for homeowners and comply with strict air and water quality standards while minimizing water use and prioritizing brownfield and industrial sites over farmland.

The West Virginia Legislature in 2025 passed House Bill 2014, establishing the Power Generation and Consumption Act aimed at attracting data centers to West Virginia along with microgrids to power the facilities. It streamlines development of data center and microgrid projects, offers regulatory exemptions within designated microgrid districts, establishes a special valuation for property taxes and a new tax distribution framework for high-impact data centers, and creates a fund for electric grid stabilization.

Parsi said Friday he is opposed to provisions in that bill, including its tax policy.

In August, Gov. Patrick Morrisey announced the seven-point Responsible Data Center Development Plan officials said is aimed at protecting the state's natural beauty and its residents' well-being as data center infrastructure expands.

Evan Bevins can be reached at ebevins@newsandsentinel.com.