AI data center boom meets rural reality in Edgecombe County
Residents in Edgecombe County, North Carolina, are actively opposing the sale of county land for a large AI data center, raising concerns about fossil-fuel power, water usage, and rising utility bills. Concurrently, the North Carolina General Assembly is considering two proposed bills that would impose new regulations on data centers, affect coal plant retirements, and modify solar energy tax incentives.
The debate over AI data centers is intensifying in North Carolina, with a recent Edgecombe County commissioners meeting highlighting local residents' concerns and state lawmakers' legislative efforts. Residents of Edgecombe County, particularly around Kingsboro, have organized and submitted a petition with nearly 180 signatures opposing the sale of 122 acres of county-owned land to Energy Storage Solutions. The land is slated for a 900-megawatt AI data center, which opponents fear will strain water supplies, increase electricity demand, and impact utility bills. Edgecombe County Commissioner Donald C. Boswell expressed frustration with the opposition, arguing against banning or imposing a moratorium based on the petition.
At the state level, the North Carolina General Assembly is considering two key bills. Senate Bill 730, known as the Ratepayer Protection Act, proposes new rules for large data centers, requiring them to cover grid expansion costs and utilize water-saving cooling technologies. Critically, it also links coal-plant retirements to new nuclear development, which could extend the operation of coal plants and their emissions, a concern for environmental advocates and residents like Kevin Wilson of Edgecombe County Neighbors for Data Center Accountability.
The second bill, House Bill 1213, originally sought to repeal sales and use tax exemptions for data centers, aligning with Governor Josh Stein's administration's view that such incentives are no longer justified. However, lawmakers removed the data center language from the bill. Instead, the current version proposes ending an 80 percent property-tax exclusion for utility-scale solar projects placed in service after July 1, 2027, potentially slowing clean energy development that could power data centers. State officials estimate existing data center tax breaks cost tens of millions annually, potentially rising significantly with planned facilities, while the solar tax break costs local governments over $40 million a year, impacting rural landowners.