N.C. governor targets data center subsidies

North Carolina Governor Josh Stein has announced a proposal to repeal longstanding state tax exemptions for data centers, citing public skepticism and the rising energy demands of these facilities. Stein stated that while AI and innovation are crucial for the state's economic development, data centers must "pay their way" to prevent residential consumers from bearing increased utility costs. The N.C. Department of Commerce estimates these exemptions cost the state over $50 million annually, a figure expected to grow with the increasing number of data center developments. The proposal faces potential hurdles in the state legislature, which is led by Republicans and traditionally supportive of economic development incentives. The article highlights growing local opposition, referencing a data center project in Matthews that was withdrawn last year due to public pushback. Additionally, Charlotte City Council members have expressed a desire for new guidelines to regulate data center rezonings, particularly in areas like east Charlotte near the Reedy Creek Nature Preserve, underscoring local concerns about the industry's rapid expansion.