North Carolina data center developments face water scrutiny

News Clip3:14WRAL·NC·6/15/2026

North Carolina is experiencing a data center boom, leading to growing concerns over water and electricity demand. Many communities have adopted moratoriums or zoning restrictions, and the state legislature is considering a bill to ban evaporative cooling systems. Companies like Microsoft and Amazon are making pledges to reduce water usage at their campuses.

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Gov: North Carolina House, State legislature

North Carolina is experiencing a significant increase in data center development, with over 20 new projects in the pipeline across the state. This rapid expansion has led to mounting concerns among communities regarding noise, electricity consumption, and particularly, water demand. In response, more than two dozen communities have already enacted moratoriums or adopted zoning restrictions to manage data center growth.

Antoine Jean, a water engineer, highlights the increasing demand for water driven by AI and data center expansion, stressing the added pressure on supplies already strained by population growth and drought. He emphasizes the need to consider not only engineering factors but also the social priorities of local communities. Data centers require cooling systems to prevent servers from overheating; evaporative cooling uses substantial water, much of which does not return to the local supply, while closed-loop systems use less water but consume more energy and chemicals.

These trade-offs recently led the North Carolina House to pass a bill that would prohibit evaporative cooling systems at large data centers. Major tech companies are already responding to these concerns. Microsoft plans to utilize a closed-loop system at its Person County campus and aims to transition away from evaporative cooling across its portfolio. Amazon's Richmond County campus will primarily use outside air cooling, relying on water-based evaporative cooling for less than 7% of the year, according to company estimates. Both companies have committed to becoming "water positive," meaning they pledge to replenish more water than they use.

Despite the economic benefits of jobs and investment brought by tech companies to rural areas, many communities lack the resources to conduct extensive studies on the environmental and water impacts of these large projects. While communities are not trying to halt the data center boom, they seek comprehensive answers regarding potential effects before approving further developments.