Momentum evaporating for legislative restrictions on data centers in NC
North Carolina's 2026 legislative session, which initially aimed for sweeping environmental and financial restrictions on data centers, has significantly narrowed its scope. A single provision in the 2025-27 state budget compromise bill will eliminate the sales tax exemption on electricity for data centers. This decision is projected to generate at least $21.4 million in revenue.
The North Carolina legislative session for 2026, which began with the potential for implementing extensive environmental and financial restrictions on data centers, has largely seen these efforts curtailed.
House and Senate Republican leadership and budget writers have agreed to a single provision within the 2025-27 state budget compromise bill. This key change involves the elimination of the sales tax exemption on electricity for data centers.
This decision is projected to be worth at least $21.4 million in state revenue. The broader proposals for new data center regulations, which were initially considered, have been significantly watered down.