The Commerce Secretary and the Unprecedented Revolt Against Data Centers
North Carolina's Secretary of Commerce, Lee Lilley, is navigating significant statewide opposition to data centers despite their economic benefits. More than 20 communities have enacted moratoriums due to concerns over power, water, and noise, prompting Governor Stein to propose ending tax subsidies for these projects. This has led to a debate about balancing economic development with local quality of life in the state.
North Carolina's Commerce Secretary, Lee Lilley, is grappling with a growing statewide backlash against data center development, despite his efforts to promote Governor Josh Stein's "First in Opportunity" plan for rural job growth. The state is experiencing an "unprecedented revolt" as more than 20 communities have issued moratoriums on data center construction.
Residents' concerns primarily stem from the massive power and water consumption, as well as noise generated by these facilities. This pushback has been significant, with economist Michael Walden calling it unique in North Carolina's economic development history, and an Elon University poll showing 44% of residents oppose data centers in their community. The opposition has already led to the cancellation of at least three multibillion-dollar projects, including a $19 billion project in Edgecombe County.
In response to these issues, Governor Stein plans to accelerate the end of state tax subsidies for data centers, and the General Assembly has already eliminated sales tax exemptions on electricity used by these facilities. Despite these policy shifts, major investments continue, with Google announcing a $1 billion expansion in Lenoir and Amazon investing $10 billion in a data complex in Richmond County, securing local tax packages.
Leaders like Christopher Chung, CEO of the Economic Development Partnership of North Carolina, remain optimistic about the state's business climate. Industry consultants, such as John Boyd, emphasize North Carolina's strengths in intellectual capital, real estate, and a business-friendly government as key drivers for attracting data centers and other tech sectors, including emerging quantum computing projects, suggesting the local opposition may not deter larger investment trends.