Fight over AI data centers reaches rural North Carolina, with a 24-month halt on the table

A fight over AI data centers in North Carolina has reached county commission chambers as residents press officials over who gets the gains and who absorbs the burdens. In one rural county, that pressure has put a two-year freeze on new projects.

What's happening?

Two state bills are shaping the backdrop, but the most immediate fight is in Edgecombe County. According to North Carolina Health News, residents there have spent months objecting to a proposed AI data center in Kingsboro that would sit on 122 acres of county-owned land and draw 900 megawatts of power, roughly as much electricity as more than 700,000 homes use. 

Instead of adopting the permanent ban some activists want, county commissioners are considering a 24-month moratorium on new data center development. 

The dispute exposes a familiar split in a low-wealth community: some residents are alarmed by potential water consumption, pollution, and added strain on the electric system, while officials are focused on possible jobs and new tax revenue. 

Meanwhile, Senate Bill 730 would require large data centers to pay for grid upgrades and to use water-saving cooling systems, though it would also postpone some coal-plant retirements until new nuclear development moves forward. House Bill 1213 would also change the energy landscape by ending a major property-tax break for future utility-scale solar projects after July 1, 2027.

Why does it matter?

Part of the appeal for developers is that rural land is usually much cheaper than property near big cities, especially in counties with access to transmission lines and water. Those same assets are why AI facilities can become so contentious: the computing centers behind AI need enormous amounts of electricity and, in many cases, significant volumes of water for cooling. 

AI may help with forecasting, the management of clean energy systems and overall grid efficiency, but the physical infrastructure supporting it can also strain local resources, raise utility costs and prolong dependence on more polluting power sources. Beyond energy and water, the growth of AI raises broader concerns about misuse, security, and unintended social effects. 

Critics also fear residents could end up paying indirectly if utilities build new infrastructure to serve private data centers. Kevin Wilson, co-chair of Edgecombe County Neighbors for Data Center Accountability, pointed to the coal provision in SB 730, saying, "Think about what that would cost — it takes at least 20 years to build a nuclear plant. Then think about all the pollution that would go into the air from those coal generating plants running that much longer."

What's being done?

The next key local step is a public hearing on Edgecombe County's proposed moratorium, expected at an August meeting, while both state bills continue to move through the legislature. 

In Raleigh, lawmakers are trying to create guardrails for the largest data centers: SB 730 would require very large facilities to cover the costs of new transmission, additional generation, and broader grid expansion through long-term contracts and minimum billing requirements. The bill would also mandate water-saving cooling technologies and prohibit open-loop systems. 

Farmer Ken Gurganus previously told lawmakers, "Tomorrow, July 1, my wife and I will receive an installment check from the solar provider, and I promise you, sir, that that money will not go into a trust fund or a vacation." 

"Our public is beginning to question what we do — it's another day," said Leonard Wiggins, chairman of the Edgecombe County Commission. And as Wilson put it, "The world is on their shoulders in these little towns, and they're damned if they do, they're damned if they don't."

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