West Virginia officials praise latest changing of hands of Fidelis Mason County data center project

Parkersburg News and Sentinel
Mar 17, 2026
Steven Allen Adams

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SOLD ALREADY…

CHARLESTON – A data center and microgrid project first approved by West Virginia economic development officials in 2023 in Mason County is undergoing a change of hands.

CHARLESTON – A data center and microgrid project first approved by West Virginia economic development officials in 2023 in Mason County is undergoing a change of hands. In an announcement on Monday, California-based Nscale said it acquired the Monarch Compute Campus, a 2,380-acre data center and microgrid project near Point Pleasant. Nscale acquired American Intelligence and Power Corporation (AIPCorp), which is sponsored by Texas-based Fidelis New Energy and 8090 Industries, an investment firm. Nscale said it had signed a memorandum of understanding with Microsoft to provide 1.35 gigawatts towards an artificial intelligence data center project using NVIDIA Vera Rubin NVL72 graphics processing units (GPUs).

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We have a few questions

1. Who the developer/owner actually is

Key issue:

• The permit filings redacted many technical details, citing “business confidentiality.”
• Even local officials said they had no prior knowledge of the project before the public notice appeared.

That lack of transparency is why critics say the project feels like “smoke and mirrors.”

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2. Where the owners are from

Many of the companies exploring West Virginia sites are out-of-state technology or energy firms looking for:

• cheaper land
• proximity to fiber internet routes
• cheap power (especially natural gas)

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3. If the project never gets built — who is left with the mess?

That depends on the stage it reaches:

If it stops before construction

• Usually, the developer loses permit and planning costs.

If the infrastructure is partly built

• Local utilities or taxpayers may still be responsible for:
  • road upgrades
  • water system expansions
  • power infrastructure

Critics worry about this because some proposals require major utility upgrades before the final investment is guaranteed.

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4. Real number of permanent jobs

This is one of the biggest controversies.

Typical large data centers:

• hundreds or thousands of construction jobs
• very few permanent jobs

Common numbers:

• 30–100 full-time employees once operating (technicians, security, maintenance)

Communities elsewhere have reported <100 permanent workers for huge facilities occupying hundreds of acres.

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5. Tax abatements and lost local revenue

Under recent West Virginia law:

• 70% of property tax revenue from large data centers goes to the state
• only 30% goes to local governments.

For example:

• A hypothetical $1 billion data center investment could mean
  ~$5.4 million in lost revenue to the county and school system compared with normal taxation.

Local officials say this affects funding for:

• schools
• police/fire
• infrastructure

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6. Infrastructure cost to local taxpayers

The exact cost depends on the site, but concerns include:

• water system expansions
• road upgrades for construction
• electrical transmission upgrades

Some critics argue existing utility customers could end up subsidizing upgrades needed to power the facilities.

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7. Water usage

Large data centers use enormous amounts of water for cooling.

Typical estimates:

• 3–5 million gallons per day for cooling systems.

That is roughly equal to the water use of a small city of tens of thousands of people.

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8. Noise levels

Noise usually comes from:

• cooling fans
• HVAC systems
• backup generators

Residents near other data centers report constant, low humming noise 24/7.
Regulators acknowledge noise can reach significant decibel levels, though exact numbers vary by design.

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9. Loss of local control

This is the most controversial part.

A new West Virginia law related to data centers and microgrids:

• removes most local zoning authority
• prevents counties from regulating noise, lighting, or land use
• shifts most tax revenue to the state.

In other words:

Local governments may not be able to block or regulate these projects even if residents oppose them.

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10. Why the controversy exists

Residents and environmental groups argue that the deal structure can mean:

Benefits

• construction jobs
• some long-term tech investment

Risks

• heavy water usage
• energy demand
• noise/light pollution
• reduced local tax revenue
• limited local authority

The biggest criticism is simply a lack of transparency about:

• the companies involved
• exact size of projects
• environmental impact
• public costs.

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✅ Bottom line:
The “smoke and mirrors” argument mostly comes from the fact that many of the details (ownership, water sources, job numbers, and infrastructure costs) have not been publicly disclosed or were redacted in filings, while legislation has already reduced local control over these developments.