A Facebook data center in Forest City, N.C. Photo: Rainier Ehrhardt/Getty Images
A growing number of municipalities in North Carolina are trying to block data centers from being built.
Why it matters: The nation is seeing an unprecedented wave of investment into data centers as the backbone to new artificial intelligence technology.
But, increasingly, residents are pushing back at their construction due to their potential impacts on electricity prices, water usage and noise levels.
Driving the news: In recent weeks, Chatham County, Gates County and the town of Canton in Western North Carolina have passed 12-month moratoriums on the construction of new data centers and cryptocurrency mining facilities.
Yes, but: The moratoriums can't permanently stop the construction, and many local municipalities say a state law keeps them from "downzoning" properties in their areas to exclude data center usage, The News & Observer reported.
The law, which Axios first reported was tucked into a Hurricane Helene relief bill in 2024, drew ire originally for its potential impacts on cities' ability to plan transit overlay districts or protect watersheds.
State of play: Many counties, including Wake, are now debating the tradeoffs between the economic development benefits and tax revenues that data centers can provide, against worries about their use of resources and quality of life impacts.
Some, like Richmond County, have gone all in on data centers, using incentives to entice a $10 billion investment from Amazon near the town of Rockingham.
What they're saying: "Our goal is to protect residents, natural resources, and quality of life, while we develop clear, thoughtful standards that reflect today's technologies and align with the County's long-term vision," Chatham County Commissioner Amanda Robertson said in a statement about the moratorium.
