Volume of data centers rises, as do community voices leading to moratoriums
North Carolina is experiencing a significant increase in data center developments, alongside a rise in community opposition and resulting moratoriums across multiple counties and cities. A large energy storage data center project in Edgecombe County was recently pulled, following a trend of stalled projects and legislative actions regarding tax exemptions and energy requirements. Public polling shows strong support for data centers generating their own energy.
The state of North Carolina is grappling with a surge in data center developments, leading to increased community pushback and a wave of moratoriums. In Edgecombe County, the 400-acre Kingsboro mega site has seen multiple high-profile projects fail to materialize, including a $19.2 billion energy storage campus planned by a data center developer, Energy Storage Solutions, which recently pulled out of the deal. This project would have been one of the largest in the Southeast, similar to one planned for Fayetteville, and faced significant community opposition.
Across North Carolina, numerous counties and cities have enacted data center moratoriums, ranging from 60 days to over a year, in response to taxpayer concerns about the impact on water supply, electricity, and quality of life. The state also saw legislative action this year; Governor Josh Stein signed a budget section repealing sales-and-use tax exemptions on electricity for data centers, though physical equipment retains tax breaks. Two other legislative proposals, the Ratepayer Protection Act and the Datacenter Transparency Act, stalled in the General Assembly. Polling indicates that 8 out of 10 North Carolinians believe AI data centers should be required to provide their own energy generation.