Virginia data centers to replace coal where coal once reigned

Nonprofits envision energy transformation in SW Virgina

Data center supporters try to counter the scepticism

The region has lost income and population

By David Sherfinski

Entrepreneurs are now looking at the rural area with the ambitious vision to rebuild its economic by converting the old mines into data centers and solar power systems that could help feed the growing power demand of the artificial-intelligence boom.

A non-profit group called Energy DELTA Lab (Discovery, Education, Learning & Technology Accelerator), which is aiming to develop energy resources on approximately 65,000 acres in southwest Virginia, is currently working on such a project.

Will Clear and Will Payne who manage Energy DELTA Lab say that they envision building a massive Data Center Ridge of 450 acres on top of the old mining lands. The Data Center Ridge could be powered and cooled by using billions of gallons water that replenish naturally below.

Payne stated that unlike some areas nearby, there was no acid mine drainage which deposited sulphuric acids and heavy metals on exposed mine rock walls, rendering the water unusable.

He said the difference is due to geology. The Wise County coalfields lack the mineral, pyrite. Pyrite is a major culprit in acid mining drainage.

"So, the water is of good quality." Payne stated that the cost of using, and circulating this water was low.

A few localities have adopted resolutions and a special rate of tax on data centers equipment to encourage regional investments. Wise County is one such example.

Payne admits that the plan may face opposition in an area affected by the decline of coal.

Payne and Clear, who run Squabble State Hard Cider & Spirits near the Tennessee border, said that there was skepticism among those looking to expand in the area because of the many stories about promises made, but not kept.

Appalachia used to be the center of America's coal industry. Its decline decimated the local communities.

Coal has dropped as the top fuel source in the United States for decades due to concerns about cost, worker's health, and fossil fuels' contribution to global warming.

Erin Bates, from the United Mine Workers of America trade union, said: "When you drive through coal mining towns, they are ghost towns."

The number of bankruptcies in the past three decades has destroyed these communities.

AMBITIOUS Vision

The Data Center Ridge is a vision that has a high financial goal. According to Allianz Financial Services, the cost of building a data center can range from $500 million to $2 billion.

Energy Transfer in Texas, the owner of the land, is hoping that the entrepreneurs can prove their idea's feasibility. Penn Virginia Operating Co. manages the land.

Payne explained that some people are willing to consider the future while others may not have the time, or the interest.

Energy Transfer has not responded to requests for interviews.

Some coal mine repurposing initiatives are proving successful, at least locally.

Mineral Gap Data Center in Wise County will be online by 2023. It is the first abandoned mine in the state to have been converted to solar.

In Martin County in Kentucky, an utility-scale project that will power 18,000 homes on a former mine site went online in December.

The Nature Conservancy is a nonprofit organization that has partnered with a solar project of 10 MW in Wise County, built on an old surface mine called Indian Creek. Construction is scheduled to begin next year.

Brad Kreps is the Clinch Valley Program Director at The Conservancy. He said that they are working on a larger conservation effort spanning over 250,000 acres of Virginia, Kentucky, and Tennessee, which could include more solar development.

Kreps stated that "our projects are among the first to move forward in central Appalachia."

PUBLIC INTEREST TESTS

Jean Su, a representative of the Center for Biological Diversity (a nonprofit organization), said that building new data centers requires on-site renewable power to be feasible.

She questioned the general construction of data centers.

Su stated that it should be the responsibility of every jurisdiction to determine whether or not they are serving their constituents - by understanding environmental issues, water problems and drainage.

Environmental groups have criticised the expansion of data centres, as they strain power grids. They also require more energy than is available.

Payne, however, says that local residents will have jobs.

According to a report by the Virginia state, a typical data center could employ up to 1,500 people on site during construction. Once operational, it would also have 50 workers working full-time.

The report stated that based on the average spending of the industry between 2021-2023 the overall data center industry will contribute 74,000 jobs to Virginia's economy, $5.5 billion labor income, and $9.1 Billion in GDP each year.

The study found that these estimates represented just over 1 % of the total employment, income, and Virginia GDP in those years.

According to the Bureau of Labor Statistics, between 2016 and 2023 the number of data center workers in the United States increased from 306,000 up to 501,000.

The administration of Donald Trump wants to reverse the decline in coal usage, largely for the purpose of fueling AI systems.

The U.S. Department of Energy announced in October that it would provide $100 million to refurbish and upgrade coal-fired plants.

Bates stated that the mining industry would be happy with any solution to create jobs.

(source: Reuters)