N.C. governor targets data center subsidies

This article appeared in the April 13, 2026, edition of The Charlotte Ledger, which provides Charlotte with dependable local information.

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Gov. Josh Stein, tapping into the public skepticism toward data centers, says he wants to eliminate long-standing state subsidies for them so that taxpayers aren’t putting money toward energy-guzzling buildings that drive up utility costs.

“AI will be part of our future, and we want to keep innovation central to this state's economic development strategy,” Stein said, according to Raleigh TV station WRAL. “But we cannot be blind to the impact these data centers are having on our state. They need to pay their way, so that our residential consumers don't have to bear the cost.”

Figures from the N.C. Department of Commerce show that the state is probably forgoing about $50M a year because of data center exemptions, and that figure seems likely to rise as the number of data centers balloons. Stein said the tax breaks were created 20 years ago.

It is unclear whether the state legislature would be receptive to such a proposal. Stein is a Democrat, and the General Assembly is led by Republicans. Leaders from both major political parties generally support the state’s economic development incentives to attract new businesses.

Companies are increasingly proposing data centers, which provide computer servers and other infrastructure for artificial intelligence and other technologies.

There are 43 data centers in the 14-county Charlotte region, with more planned, The Ledger reported in October. Several City Council members have said they would like guidelines in place before approving rezonings for data centers, like one planned near Reedy Creek Nature Preserve in east Charlotte. —Tony Mecia

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