Inside North Carolina's data center boom: Where does the water go?
North Carolina is experiencing a data center boom, prompting concerns about water and electricity usage, which has led over two dozen communities to adopt moratoriums or zoning restrictions. The state House recently passed a bill to restrict hyperscale data centers, particularly regarding evaporative cooling. Amid growing public skepticism, companies like Amazon and Microsoft are detailing their water-saving approaches for their projects in the state.
North Carolina is witnessing a significant data center expansion, but this growth is fueling concerns over water consumption, electricity demand, and noise, leading more than two dozen communities across the state to implement moratoriums or zoning restrictions on new facilities. A recent Elon University poll indicates that only 24% of North Carolinians support data center development in their communities, with residents actively participating in public meetings from Apex to Edgecombe County to voice their opposition.
In response to these concerns, the North Carolina House has passed Senate Bill 730, legislation aimed at imposing new restrictions on hyperscale data centers. The bill, championed by Rep. Matthew Winslow of Franklin County, seeks to ban wasteful evaporative cooling systems and require large data centers to cover all associated infrastructure and energy costs to prevent the burden from shifting to ratepayers and protect drinking water supplies.
Industry representatives, including Khara Boender of the Data Center Coalition (which counts Amazon, Google, Microsoft, and Meta among its members), argue that data centers bring substantial economic benefits, contributing billions to the state's economy and supporting thousands of jobs. Companies like Amazon and Microsoft are highlighting their efforts to minimize environmental impact: Amazon states its Richmond County campus will primarily use outside air for cooling, while Microsoft plans air-cooled chillers and closed-loop systems for its Person County campus, both committing to becoming "water positive" by 2030. However, water engineers like Antone Jain caution that the unprecedented scale of AI-driven data center growth introduces significant uncertainty regarding long-term water demands, particularly for smaller utilities, making precise impact forecasting challenging.
Heather Summers of the North Carolina Rural Water Association notes the dilemma faced by utilities that seek industrial users for economic growth but lack clear data on water system impacts. This uncertainty underscores the need for communities to scrutinize project proposals carefully, as the long-term implications of these facilities on local water resources may not be fully understood until they are operational.