The Data Center Rush in Appalachia

The demise of the coal industry left much of Appalachia in economic tatters, with lost jobs, spoiled water, and depopulated communities across the coalfields of Kentucky, West Virginia, and Virginia. Now, in an ironic twist of the region’s energy history, tech companies and data center developers are eyeing these same rural landscapes with ambitious plans to power the Artificial Intelligence revolution. From the hollows of Tucker County (WV) to the former strip mines of Wise County (VA), proposals for massive data center complexes are sparking both hope and fierce resistance. Proponents promise economic revitalization and tax revenues for struggling communities. Critics warn of environmental degradation, soaring utility bills for residents, limited job creation, and the stripping away of local control over development decisions. The stakes are enormous. According to a September 2025 report from the Energy & Manufacturing in Appalachia initiative, approximately 92 gigawatts of data center capacity are currently in the pipeline across the United States, with seven gigawatts being added monthly by the end of 2024. Traditional data center hubs like Northern Virginia’s “Data Center Alley” are becoming saturated, pushing growth toward rural regions in Pennsylvania, West Virginia, and Kentucky.