'Pump the brakes' | State, local leaders push for data center changes

Charlotte, N.C. Charlotte city leaders and state lawmakers are advocating for more stringent regulations on data centers, citing significant concerns about their impact on energy and water resources. Charlotte City Councilwoman Dimple Ajmera is leading the charge at the local level, highlighting that many data center proposals are situated near Black and brown communities and residential areas. She is urging the city to implement clear standards for energy and water use by these facilities and has requested a temporary moratorium on new data centers near homes for up to six months while comprehensive regulations are developed. This local debate coincides with a statewide push, as North Carolina Governor Josh Stein recently called for an end to tax breaks for data centers. Governor Stein argued that the estimated $450 million in annual sales tax exemptions for planned data centers is a poor use of taxpayer dollars, especially given the state's impending fiscal challenges and the data centers' contribution to increased power bills. While no specific legislation has been filed yet, Representative Laura Budd of Mecklenburg County expects bills to be introduced this legislative session, supporting the Governor's call to "pump the brakes" on current incentives and reassess the state's approach to data center development. American Tower Corporation recently delayed its rezoning petition for a 40,000-square-foot data center on Hood Road, a site directly across from single-family homes, further underscoring the urgency of the regulatory debate.