Data center activity in North Carolina
North Carolina's regulatory environment is weighed down by the highest reported moratorium count among its peer states, with at least 153 moratoriums enacted and 23 rejected. Zoning outcomes are moderately positive, with at least 24 approvals versus 8 denials, and opposition results are relatively balanced with at least 11 projects blocked and 17 approved despite pushback. Compared to neighboring Virginia, where zoning denials far exceed approvals, North Carolina's permitting process is less adversarial, but the sheer volume of moratoriums creates significant uncertainty. The 107 active companies signal strong market confidence, particularly given the state's energy infrastructure and proximity to major population centers, suggesting developers are positioning for growth once moratorium activity subsides.
North Carolina's regulatory environment is weighed down by the highest reported moratorium count among its peer states, with at least 153 moratoriums enacted and 23 rejected. Zoning outcomes are moderately positive, with at least 24 approvals versus 8 denials, and opposition results are relatively balanced with at least 11 projects blocked and 17 approved despite pushback. Compared to neighboring Virginia, where zoning denials far exceed approvals, North Carolina's permitting process is less adversarial, but the sheer volume of moratoriums creates significant uncertainty. The 107 active companies signal strong market confidence, particularly given the state's energy infrastructure and proximity to major population centers, suggesting developers are positioning for growth once moratorium activity subsides.
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U.S. Commerce Secretary Howard Lutnick defended data center construction, addressing concerns about water and power usage. He highlighted the economic benefits data centers bring, such as tax revenue and job creation, and warned communities against implementing moratoriums, stating they would lose out on opportunities.
A historic building in Uptown Charlotte, the Court Arcade, has been demolished to make way for a new data center developed by Digital Realty. An architect lamented the loss of the 1920s-era building, noting that its lack of local historic landmark status allowed for its redevelopment.
This opinion piece argues that the debate around data center growth in North Carolina is driven by fear and misinformation, particularly regarding water and electricity consumption. It highlights that over 30 local governments in the state, including Charlotte, have imposed temporary data center moratoriums. The author advocates for fact-based evaluation and predictable rules to guide future development rather than hysteria.
Local officials in Southeastern North Carolina are concerned about Chemours' new server-cooling chemical, which could bring more PFAS pollution to the area's growing number of AI data centers. In response to these environmental worries and a lack of regulatory oversight, local officials are implementing data center moratoriums. The video highlights Chemours' "checkered history" with pollution and the potential impact on public health and water resources.
Republican state Sen. Michael Lee and Democratic challenger Jessica Bichler debated the growth of data centers in North Carolina at a forum in Wilmington. Lee emphasized the need for stable energy for employers, while Bichler raised concerns about the industry's community impact and ability to "run roughshod" over localities. Both candidates also discussed statewide water issues.
Chemours, a company with a history of PFAS contamination in North Carolina, is now developing a PFAS-based refrigerant for data center cooling. This development comes as several communities in southeastern North Carolina are debating or enacting moratoriums on data center construction due to concerns about their environmental impact and resource use. The EPA is currently reviewing Chemours' new chemical, Opteon 2P50.
The number of data center moratoriums in North Carolina continues to rise, with at least 14 counties and 20 municipalities having enacted such measures. Several cities and counties recently approved or extended temporary bans on new data center development to study impacts and update regulations. Former President Donald Trump commented on the economic benefits of data centers, while groups like the Party for Socialism and Liberation are actively campaigning against them, impacting AI infrastructure development.
Charlotte residents are concerned about the impact of data centers on their water and electricity bills. Charlotte Water assures that current data centers have not caused residential water rate increases due to a "growth pays for growth" principle. Meanwhile, the Charlotte City Council has enacted a 150-day moratorium on new data center applications to study infrastructure capacity and environmental concerns, and is holding community meetings for feedback.
The city of Kings Mountain, North Carolina, has extended its existing moratorium on data center development. This action indicates ongoing regulatory consideration regarding the expansion of data center infrastructure within the municipality.
Davidson County officials are developing a zoning ordinance amendment to regulate future data centers, addressing concerns like noise, setbacks, and water use. This initiative follows the rejection of a six-month moratorium on data centers. Commissioners plan to visit existing data center sites in other areas to gather information.
The Environmental Protection Agency is facing a lawsuit after approving two new chemicals for semiconductor manufacturing, despite identifying potential serious health effects and lacking full risk data. Environmental groups argue the EPA should not have allowed the chemicals on the market without more testing and stronger protections. These chemicals are used in producing computer chips that power various technologies, including rapidly expanding data centers.
Yadkin County has enacted a two-year moratorium on data centers in its unincorporated areas, but this does not affect the town of Yadkinville where a new 60 MW data center by White Fiber/Enovum is planned. The facility will be located on 120 acres and 500,000 square feet of former Unifi warehouse space, which is already zoned for light industrial use. Town leaders are addressing community concerns regarding water and power usage, noting the site's existing infrastructure and the company's efforts to mitigate environmental impact.
The Environmental Protection Agency (EPA) is proposing a new plan that could limit public comments on the environmental impacts of proposed data centers, shifting the responsibility to states. This move comes amidst significant community backlash against data centers across the US and ongoing local moratoriums due to concerns about energy usage, water consumption, and noise pollution. Charlotte City Council, for example, is actively working with the state to establish new regulations for data center development.
North Carolinians are experiencing significant opposition to data center development, with over 30 local governments, including Charlotte, implementing temporary moratoriums. Critics raise concerns about water and electricity usage, but the article advocates for a fact-based evaluation of data centers' local effects. The author warns against letting fear and potentially foreign-influenced online hysteria drive policy decisions.
At the G20 Innovation Ministerial in Chapel Hill, North Carolina, top US tech executives advocated for AI adoption and emphasized the urgent need for more data centers and power infrastructure. They argued that AI is a transformative force essential for national economies, while also addressing concerns around environmental impact, job displacement, and regulation. Protesters outside the venue criticized the environmental impact of data centers.
President Trump's strong support for data centers is creating a political challenge for Republican U.S. Senate candidate Michael Whatley in North Carolina. Whatley, who previously supported data centers and tax breaks, now faces an opportunity to break with Trump and express skepticism to appeal to voters wary of these facilities. This shift could help him differentiate himself from his opponent, Governor Roy Cooper, and demonstrate political independence.
Residents in Lee County, North Carolina, are renewing their call for a 180-day moratorium on large-scale data center developments and proposing stricter zoning regulations. They submitted a petition to county commissioners outlining concerns about noise, water use, setbacks, and the adequacy of current Light Industrial zoning for a proposed 430-acre data center campus on Lower Moncure Road. The petitioners also seek requirements for special-use permits, closed-loop cooling, and developer bonds for decommissioning.
US Commerce Secretary Howard Lutnick warned American communities, including Orange County, North Carolina, against imposing moratoriums on AI data centers. He argued that such actions, based on misinformation about environmental and economic impact, would lead to lost investment and jobs. His comments followed Orange County's one-year moratorium on large-scale data centers.
The Trump administration is grappling with an internal divide regarding the rapid expansion of data centers and artificial intelligence. While some officials advocate for a hands-off regulatory approach to promote growth, others acknowledge significant public backlash from voters concerned about data center buildout in their communities.
The Moore County Planning and Zoning Board has initiated efforts to establish new regulations, referred to as 'guardrails,' for data center development within Moore County, North Carolina. This indicates a proactive move by local government to manage future data center projects.