As data center criticism grows, focus turns to N.C. Senate race
The construction of data centers has become a significant issue in North Carolina's U.S. Senate race, with both major candidates facing criticism and taking stances on their impact. Candidates are debating tax incentives and utility costs, as dozens of communities in the state have already imposed moratoriums on new data center construction. The state budget also recently removed an electricity tax exemption for data centers.
The proliferation of data centers across the country has emerged as a key issue in the midterm elections, particularly in North Carolina's U.S. Senate race. Both Democratic candidate Roy Cooper and Republican opponent Michael Whatley are addressing growing criticism over data centers' high water and electricity consumption, which some argue drives up utility costs for residents.
Wake Forest University Politics Professor John Dinan notes that the issue, previously non-partisan, has now put both candidates on the defensive. Cooper, as former governor, oversaw a period of significant data center development, which his opponent, Michael Whatley, has criticized, alleging Cooper 'bankrolled the data center boom.' The state's Department of Commerce granted 37 tax break eligibility determinations from 2015 to 2025, with centers needing a $75 million private investment to qualify for exemptions. Current Governor Josh Stein has also voiced concerns about the tax incentives, estimating $450 million in annual sales tax exemptions if all planned centers are built. The state budget has since removed the electricity exemption component of the law.
Whatley, a former energy lobbyist, has faced backlash for suggesting opposition to data centers is not 'organic.' However, he emphasizes the need to prevent 'disparate impact on the community when it comes to water, when it comes to traffic, when it comes to electricity.' While he supports tax breaks, he opposes subsidies, stating that data centers should cover their own costs and grid upgrades without burdening residential ratepayers. Cooper's campaign echoes this sentiment, asserting that data centers must pay for all energy used without passing costs to consumers. Both candidates support local communities' right to block data center development but do not advocate for a federal moratorium.