Oak Ridge National Laboratory sees data center opportunity for West Virginia

West Virginia’s role in the national data center discussion was the focus of a recent House Energy Committee informational meeting, where Gary Iyer of Oak Ridge National Laboratory briefed lawmakers on the rapid growth of artificial intelligence, hyperscale data centers and the infrastructure demands that come with them.

Iyer, an electrical engineer with more than 30 years of experience, leads ORNL’s Mega DC project, formally known as Modeling the Energy Growth Associated with Data Centers. The project is funded by the U.S. Department of Energy and is designed to help states evaluate where large-load projects, including data centers, can be responsibly and competitively located.

His message to West Virginia lawmakers was direct: The scale of data center development has changed dramatically, and West Virginia has a meaningful opportunity to compete if it plans carefully.

A decade ago, a 1-megawatt electric load was considered large. Today, artificial intelligence and hyperscale data center campuses may require hundreds of megawatts or even gigawatts of power. Iyer said that level of demand places pressure on multiple systems at once, including electric transmission, substations, natural gas pipelines, water infrastructure, land availability, workforce capacity and local permitting.

ORNL’s Mega DC platform is intended to help states evaluate those pressures before projects move forward. The platform analyzes four major factors: affordability, infrastructure feasibility, ease of doing business and siting.

ORNL starts with affordability, including the potential effect on household utility bills, before moving to infrastructure and site selection. Iyer said that approach gives policymakers a way to weigh economic development opportunities against potential costs to ratepayers and communities.

For West Virginia, ORNL sees several competitive advantages. The state has former industrial sites, aging power-related properties, reclaimed mine lands, energy infrastructure and economic development incentives that could make it attractive for data center investment. Iyer said those characteristics are commonly associated with hyperscale and AI data center siting.

The economic upside could be substantial, he said. ORNL’s modeling suggests that a $1 billion large-load investment can generate a 1.3 to 1.8 times economic multiplier, thousands of jobs and recurring tax revenue. Those benefits can extend beyond the host county through construction activity, supply chains, professional services, materials, manufacturing and statewide tax impacts.

The presentation also highlighted the importance of infrastructure modernization. Data centers require significant electric, gas, water, fiber and site-related infrastructure. While opponents often cite those needs as a concern, Iyer said they also can become a catalyst for private investment in upgraded infrastructure if costs are properly assigned to developers and not shifted to residential ratepayers.

One of the more forward-looking discussions involved the potential use of former mining assets, including reclaimed surface mines and underground limestone mines. Lawmakers asked whether subterranean spaces could be used for data centers because of their stable underground temperatures, security advantages and reduced surface footprint. Iyer responded positively and said ORNL would be interested in working with West Virginia to study the idea further.

Power remains the central challenge. Iyer said ORNL has seen growing national interest in behind-the-meter generation, including natural gas, renewables, battery storage and future advanced energy options. Those strategies are emerging because utilities and regional grid operators often cannot deliver new capacity as quickly as data center developers want to build.

Water and cooling were also key topics. Iyer said water infrastructure must be evaluated alongside power and gas, and more detailed West Virginia-specific analysis would require better data from local water systems. His presentation also touched on advanced cooling technologies, including microfluidics and dielectric coolants, that could reduce water demand over time.

For policymakers and county leaders, the presentation underscored that data centers are not simply real estate projects. They are major infrastructure, energy, tax and workforce projects. West Virginia’s ability to compete will depend on whether the state can identify suitable sites, protect ratepayers, coordinate with utilities and PJM, modernize infrastructure, train workers and provide a predictable permitting environment.

The broader takeaway is that West Virginia has a chance to turn the data center boom into a long-term economic development strategy. But success will require more than incentives. It will require serious planning around power, water, gas, land, workforce, community impact and infrastructure cost allocation.

Oak Ridge National Laboratory’s presentation validated that West Virginia has real assets that could make it competitive for AI and hyperscale data center investment. The state’s challenge now is to turn those assets into a disciplined strategy that attracts private investment, modernizes county infrastructure, expands the tax base, protects residents and positions West Virginia for the next generation of energy-intensive technology development.