What is a data center?
A data center is a warehouse full of computer servers that provide data and power for online businesses, including additional space to save information to a cloud and additional processing power.
Companies like Amazon and Google use large data centers to power their online activities.
Enterprise data centers are set up by businesses for their own storage and computing needs, and data centers range in size from small colocation data centers/service providers, which are sites that provide space for other businesses, to “hyperscale” data centers. “Hyperscale” centers use over 100 megawatts and at least 5,000 servers, according to the International Data Corporation.
In Western NC, local internet provider Balsam West in Sylva has a colocation data center, as well as larger centers such as the Meta data center in Rutherford with a 30 megawatt capacity and the Core Scientific center, located in Cherokee County, with a capacity of 103 megawatts.
The need for data centers is increasing because of the rise in artificial intelligence (AI). These centers provide the capacity for AI, like ChatGPT, to generate answers and images to your requests and other AI operations. Data centers also power non-human use, such as bots and surveillance. This is different from crypto mining centers, where servers are dedicated to the process of creating cryptocurrency.
How is power measured?
A watt is a unit of power, which is the rate at which energy is produced or consumed.
Energy is usually measured in kilowatts — there’s 1,000 watts in one kilowatt on your electric bill. A single megawatt hour is equivalent to the amount of energy generated or used in one hour.
Why are some people worried about data centers?
Data centers use large volumes of power and produce extreme heat, requiring large amounts of water to cool.
In 2023, data centers nationwide consumed about 17 billion gallons of water, according to Pew Research. The water is used by cooling systems to prevent the servers from overheating.
Data centers used 1.5% of global electricity in 2024 and are expected to represent nearly 10% of the electricity demand growth from 2024 to 2030, according to a 2025 Science direct paper.
In addition to the power and water needs, data centers can generate significant noise pollution and air pollution. The noise caused by generators and air-conditioning in the centers reaches up to 96 A-weighted decibels (dBA), a level well in excess of public health recommendations. This persistent noise may adversely affect data center staff, nearby communities, and local wildlife.
How are data centers regulated by the state?
There is no singular method for regulation, but state leaders have the ability to regulate data centers in different ways. Lawmakers control taxation of data centers as well as other regulations, including environmental reviews.
The North Carolina Department of Environmental Quality told WRAL that environmental reviews are conducted on a permit-by-permit basis, covering potential impacts such as diesel generators, stormwater runoff, and reclaimed water use.
Lawmakers have also tried to regulate data centers through rate controls. Democratic legislators proposed a bill last spring to prohibit “passing any grid or energy costs incurred solely for serving data centers to rate payers and creating a special commission for data center planning.” The measure did not make it out of committee.
Democratic Rep. Lindsey Prather (NC-115), one of the bill’s sponsors, said she is concerned about the increase in data centers because of their impact on the power grid, as well as the increased power use. She also said the uncertainty of the industry gives her pause.
“We don't know what the return on the investment is going to be. We don't know the type of jobs that they're going to bring. You know, we don't even know if this whole AI thing is a bubble that's going to pop,” Prather told NC Local. “There are so many amazing things that are happening in North Carolina, that we could be investing more in those things. Things that we know are consistent, that we know are going to provide jobs.”
Prather faces a re-election contest against Republican Anthony Penland.
What about local governments?
Under state law, local governments can place a moratorium, or temporary hold, on development.
Several local governments, including the Town of Canton and Chatham County, have recently placed a one-year ban on data center development.
County governments and municipalities also have the ability to update zoning laws to allow - or not allow- different types of businesses, including data centers.
A bill passed by the legislature following Hurricane Helene limited some local government authority to zone. The measure (SB382) required that any local zoning change that would reduce allowed land uses or density would require property owners’ written consent.
This means that any zoning changes can’t be put in place solely by the local government. Critics said the law is too broad, while supporters of the measure said it helps protect private property rights.
Do data centers pay more for electricity?
The rate for electricity for customers is decided by the N.C. Utilities Commission. In November of last year, Duke Energy sent proposals to increase its rates to the commission. The proposals include a higher increase for residential than industrial uses.
If approved, the changes would increase Duke’s revenue by 15%. The commission issued an order calling for public hearings across the state in the spring.
A final order on new rates will be entered in late 2026 for implementation in 2027.
Duke Energy cites growing numbers of data centers as one of many reasons that the company needs to improve its grid and infrastructure. "To protect residential customers, our contracts with large-load customers – such as data centers – include provisions that require these facilities to pay the full costs associated with delivering service to their sites," the company said on its website.
In a plan, released Oct. 1, Duke officials said the Carolinas’ energy needs grew by about 10 terawatt-hours over the past 15 years. Over the next 15 years, it’s expected to grow by 80 terawatt-hours – an eightfold increase, almost equivalent to South Carolina’s total energy consumption in 2023.
Data centers account for over 85% of this new load growth, UNC’s Media Hub reported.
There have been some moves for more sustainable data centers. Since 2014, Apple’s data centers have operated with renewable energy. All of Apple’s data centers run on various combinations of biogas fuel cells, hydropower, solar power, and wind power, according to IBM.
Where are the data centers located?
There is no federal registration requirement for data centers, according to Pew Research. The state also doesn’t keep a registry, partially for security reasons, according to reporting by WRAL.
Some independent organizations have compiled lists of data centers. For example, this data center map shows 93 in the state with a variety of different sized facilities.
There are 53 hyperscale data centers in the state with 28 providers including big names like Apple, Meta, Microsoft and Google, according to Data Centers.com.
In 2018, Facebook allowed for a tour of their data center in Forest City, NC.
The North Carolina Data Center Corridor in the Triangle region has 17 data centers, operated by 12 providers, including Meta, AT&T, and Apple, with 2,991,950 sq. ft. and 354 megawatts.
Smaller data centers aren’t on some of the maps, including Balsam West’s data center in Sylva. The center offers additional wattage, storage, and processing power for local businesses.
What kind of action are communities taking on data centers?
As more data centers are proposed across the country, community opposition to them has also grown. According to Data Center Watch, a database tracking opposition to large-scale data center projects across 28 U.S. states, in the last three months of 2025, 20 projects were blocked or delayed amid local opposition.
In eastern North Carolina, Tarboro community groups opposed data center development. Stokes County residents also expressed opposition to the construction of an 1,800-acre data center near the Dan River.
Chatham County commissioners voted to ban data centers for a year. The Town of Canton also passed a moratorium in February 2026.
Public Hearings at the NC Utilities Commission
Have thoughts on utility rates? Share them with the body that is considering the proposed rate increases.
Public Hearing in Lumberton — March 31 at 7 p.m. at Robeson County Courthouse, 500 North Elm Street, Lumberton, NC 28359
Online hearing — April 1 at 6:30pm. Note: Only the first 20 individuals registered by 5:00 p.m. on March 25, 2026, will
be allowed to testify. Register here.
Public Hearing in Snow Hill — April 6 at 7 p.m. at Greene County Courthouse, 301 North Green Street, Snow Hill, NC 28580
Online Hearing — April 7, 2026, at 6:30 p.m. Participants must register by 5:00 p.m. on March 31, 2026. Register here.
Public Hearing in Roxboro — April 13 at 7 p.m. at the Person County Courthouse, 105 South Main Street, Roxboro, NC 27573
Public Hearing in Waynesville — April 14 at 7 p.m. at the Haywood County Courthouse, 285 North Main Street, Waynesville, NC 28786
Public Hearing in Morganton — April 28 at 7:00 p.m. at the Burke County Courthouse, 201 South Green Street Morganton, NC 28655
Public Hearing in Charlotte — April 29 at 7:00 p.m. at the Mecklenburg County Courthouse, 832 East 4th Street Charlotte, NC 28802
Public Hearing in Winston Salem — May 6, at 7:00 p.m. at the Forsyth County Courthouse, 175 North Chestnut Street Winston-Salem, NC 27101
Public Hearing in Durham — May 12 at 7:00 p.m. Durham County Courthouse 501 South Dillard Street Durham, NC 27701
Expert Hearing in Raleigh — July 7 at 10am. Note: This is solely for expert witness testimony. The public may watch on the Commission's Youtube Channel.
For more info on public hearings, check out the Commission website.
This article first appeared on NCLocal and is republished here under a Creative Commons Attribution-NonCommercial 4.0 International License.
