Opinion: North Carolina’s data center boom must not come at the expense of taxpayers

Steve Rao, a WRAL TechWire contributor, argues that North Carolina's rapid data center expansion, while promising economic growth, poses significant risks to the state's energy grid, water resources, and taxpayers. Governor Josh Stein has expressed concern over an estimated $450 million in annual sales tax exemptions for planned data centers, questioning the fiscal responsibility amid potential rising energy costs for residents. The article highlights that large data centers can consume vast amounts of electricity and water, stressing existing infrastructure. In response to these concerns, particularly regarding a proposed data center in Apex (the "New Hill project"), the Apex Town Council enacted a one-year moratorium on new data center applications. This action, initiated by Mayor Pro Tem Terry Mahaffey, aims to allow the town to study the impacts and establish clear development standards. Similarly, the Town of Wendell has paused data center development for policy guidance and community engagement. Rao emphasizes that these local actions are proactive planning measures, not anti-growth sentiments. The Governor GÇÖs AI Leadership Council advocates for integrating data center growth with North Carolina's energy planning and grid capacity, ensuring developers contribute to infrastructure investments and that costs are not passed to residential ratepayers. The author underscores the necessity of a comprehensive strategy for energy, cost, and long-term sustainability to ensure responsible development for all North Carolinians.