McDowell joins NC data center pause
McDowell County, NC, has enacted a six-month moratorium on data center development to address concerns about electricity demand, water use, tax policy, and infrastructure costs. The decision follows a public hearing where residents voiced concerns about resource consumption and environmental impacts. State and national officials are debating the economic benefits and regulatory challenges of AI and data center growth.
McDowell County, North Carolina, has unanimously approved a six-month moratorium on data center development. The decision by the Board of Commissioners on August 31, following a public hearing in Marion, aims to allow county officials to study the potential impacts of data centers on electricity demand, water usage, noise, emissions, and local infrastructure before establishing permanent regulations. County Manager Ashley Wooten clarified that the pause is a temporary measure, not a definitive approval or denial of future projects.
The county's action aligns with a growing trend among local governments in North Carolina and nationwide to pause data center construction amid rapid industry growth and uncertainties about its effects. This local development coincides with broader discussions at the state level, where North Carolina lawmakers recently repealed a sales use tax exemption for electricity consumed by data centers, a measure expected to generate significant state revenue. Separately, G20 meetings in Asheville and Chapel Hill underscored the economic potential of AI and digital infrastructure, with participants including US Commerce Secretary Howard Lutnick and OpenAI CEO Sam Altman.
Public sentiment in McDowell County, as voiced by residents like Melissa Biddix and Janice Witson, focused heavily on environmental concerns, particularly water consumption and the strain on the electric grid, asserting that natural resources are paramount. Commissioner David Walker emphasized using the moratorium to ensure new companies enhance local communities rather than detract from them. The decision also comes as political figures like former President Donald Trump have publicly criticized data center development pauses, arguing against hindering economic growth, while figures like Brian Balfour of the John Locke Foundation support the local governments' cautious approach.