After weeks of negotiating, Appalachian Power, Google and a group representing West Virginia manufacturers have struck a deal with state regulators on potential data centers.
The settlement, announced Wednesday, is a step toward bringing data centers – and jobs – to the state.
Google had objected to the original terms of Appalachian Power’s proposal, including the duration of the contracts and the obligation to purchase a minimum amount of electricity.
The Public Service Commission’s consumer advocate proposed a compromise based on a recent agreement between Google and Indiana Michigan Power. The settlement reached Wednesday follows its template.
The PSC will have to approve the agreement. Data centers consume large volumes of electricity but are expanding to meet the demands of artificial intelligence and advanced manufacturing.
The agreement sets the term for “large-load” customers such as data centers. They must have a minimum contract capacity of 100 megawatts at an individual site. Their initial contract term cannot be less than 12 years.
They also must commit to purchase at least 80% of the power they expect to consume.
No data center has yet chosen to locate in West Virginia. Virginia, meanwhile, has become a data center hub.