Data centers pose significant risks and costs to our environment and healthy
With the advent of the artificial intelligence (AI) boom, the U.S. has seen explosive growth in the demand for data centers and the energy required to power them. North Carolina is no exception. Over 20 new data centers have been proposed in our state, many of which—of those disclosed—are expected to operate at a capacity upward of 200 megawatts (MW), the power needed to power roughly over 130,000 homes.
While big tech-funded front organizations such as “North Carolina Connects” spend hundreds of thousands of dollars to spread lies about the impacts of data centers, residents across the state are raising their concerns. Across party lines, communities have been organizing—speaking at local council meetings, demanding moratoriums, and even showing up at the NC General Assembly (NCGA).
Economic drawbacks
Preliminary economic data show clear cause for concern. Data centers do not create meaningful, sustained economic opportunities for host communities, especially when weighed against the immense public infrastructure costs required to build and operate them. Drawbacks include:
- Minimal Local Employment: Facilities require vast land footprints but yield very few permanent jobs once construction ends.
- Corporate Subsidies: Tax abatements for data center operators cost North Carolina taxpayers an estimated $75 million in lost revenue.
- Housing Competition: Data center developers routinely outbid homebuilders for land and grid connections. In a state facing a five-year housing shortage exceeding 760,000 units, diverting capital and land to tech giants further drives up housing costs and exacerbates local wealth inequality.
Recognizing these risks, Governor Stein proposed ending tax exemptions for facilities and established the N.C. Energy Policy Task Force to focus on electricity affordability for residential ratepayers.
Health and environmental dangers
Researchers project data centers will consume up to 12% of total U.S. electricity by 2028. The rush to supply this power has directly driven up residential electric bills, which have surged 22% over the last five years for North Carolina families. There is no law currently in place that would protect ratepayers from subsidizing this increase for electricity demand. And communities are rarely in the room when these decisions are made, though they are on the frontlines of the health and environmental impacts.
Data Center Impacts On
Our Environment & Communities
| Impact Category | Environmental & Community Consequences |
| Water Quality & PFAS | Supposed “closed-loop” cooling systems still require water draws from local watersheds. System chemical flushes (“blow-downs”) risk releasing toxic contaminants like PFAS, “forever chemicals,” into municipal water systems. |
| Air Pollution | Relying on continuous natural gas generation and backup diesel generators releases hazardous fine particulate matter linked to elevated rates of asthma, heart disease, and cancer. A study from Caltech and UC Riverside estimated that data center air pollution could contribute to 1,300 premature deaths annually by 2030. |
| Noise & Health | Constant high-frequency cooling turbines generate relentless low-frequency noise pollution, causing neighboring residents to suffer chronic headaches, insomnia, and severe anxiety. No research has been conducted to show the impact noise could have on livestock and wildlife. |
What leaders are (not) doing about it
Since almost half of North Carolinians oppose the construction of data centers in their communities, why isn’t greater action taken by lawmakers to protect their constituents?
Last summer, the Republican-controlled General Assembly missed a key opportunity to regulate data centers. While Senate Bill (S.B.) 730 could have required some basic regulations—including a ban on local government subsidies—the law ultimately stalled in the Senate.
However, S.B. 730 had some environmentally destructive policies as well. As environmental champions like Representative Maria Cervania (D) pointed out, S.B. 730 could have forced our state to delay planned coal plant retirements—locking ratepayers into expensive, dirty energy while undermining our state’s climate goals.
Governor Stein called on lawmakers to phase out tax incentives for data centers. “I’ve called on the legislature to be clear-eyed about the real cost of these tax breaks given to corporations,” Stein said, “and I’m eager to work together to find the best path forward for our people. We can welcome innovation and give businesses certainty without requiring taxpayers to bankroll in perpetuity an industry with trillions of dollars already backing it.”
Despite overwhelming public concern, Republican leadership hasn’t taken these issues seriously enough. Instead, they are using data centers as an excuse to further entrench our reliance on dirty fossil fuels.
Connection to Duke Energy
Last year, Duke Energy earned $4.9 billion, an 8% gain from 2024. Now, they’re planning to increase rates by 9.5% over the next two years, starting this November. In part, the rate hike is Duke Energy’s attempt to meet the energy demands of incoming data centers, by asking consumers to help carry the costs of expansion. While North Carolinians are encouraged to conserve energy, Duke Energy wants to subsidize data centers and guarantee a significant profit on the biggest fossil-fuel gas plant build-out across the U.S.