Local governments across the Carolinas increase scrutiny of large‑load projects as national resistance to data‑center expansion grows
By Coastal Carolina News Staff Writer
Regional News: Local governments across North Carolina and South Carolina are reassessing how large‑load digital infrastructure fits into long‑term planning, as new national data released on September 9 shows rising public opposition, infrastructure concerns, and state‑level reversals targeting data‑center expansion.
The Carolinas, already managing rapid growth, rising electricity costs, and recurring drought conditions, are now part of a broader national shift in how communities respond to high‑demand facilities that support artificial intelligence.
Across the country, states that once promoted data‑center development through tax incentives are reconsidering those policies. Electricity consumption reached a record high in 2025, and wholesale power prices increased between two and 6% due to data‑center demand. Residential electricity costs have risen by 35% over the past five years, intensifying pressure on state and local officials to protect ratepayers.
A March 2026 Gallup national survey found that 71% of Americans oppose building AI data centers in their communities, including 48% who said they are strongly opposed.
More than three hundred bills targeting data‑center siting, water use, tax incentives, and rate protections have been introduced across thirty states since 2025. Community resistance has blocked or delayed an estimated ninety‑eight billion dollars in projects. Utilities filed thirty billion dollars in rate‑increase requests last year, affecting more than eighty million customers. In some areas near large campuses, households reported bill increases exceeding two hundred percent.
Several states have enacted or proposed new restrictions. New York implemented a one‑year moratorium on hyperscale AI data centers. Texas paused new grid connections for large‑load facilities pending a full audit of power demand. Pennsylvania adopted strict requirements for developers, including self‑funded energy infrastructure and local approval before state permits are issued. Other states suspended or eliminated tax incentives previously used to attract data‑center investment.
Water use remains a central concern.
A one‑hundred‑megawatt data‑center campus can consume hundreds of millions of gallons of water per year depending on its cooling system, comparable to the annual usage of a small town. This issue is particularly relevant for drought‑prone coastal counties in the Carolinas, where water‑supply limitations intensify during peak summer months. Brunswick County entered Stage 3 conservation earlier this year, prompting mandatory restrictions for residential and commercial users.
County‑level planning in Brunswick, Columbus, and Horry reflects growing caution toward high‑demand industrial development.
Brunswick County has emphasized water‑supply protection, rate stability, and infrastructure alignment with residential growth. Columbus County has focused on rural preservation and utility‑capacity limits, signaling that heavy‑load facilities may not fit within long‑term plans. Horry County, SC continues to scrutinize industrial proposals that could strain water, sewer, or electrical systems.
Town governments across the region have reinforced this posture.
Across the region, towns have taken increasingly cautious positions on high‑demand industrial projects. Leland has tightened zoning and conditional‑use standards for large facilities, while Shallotte continues to center decisions on water‑system reliability and long‑term rate stability. Southport has adopted a cautious stance, focusing on water availability, service reliability, and compatibility with established land‑use patterns. Boiling Spring Lakes prioritizes community character and environmental protection, and Whiteville has underscored the limits of its existing utility capacity, noting that high‑load proposals could require upgrades beyond current plans. Tabor City maintains a selective recruitment posture aimed at preserving its rural identity. In South Carolina, North Myrtle Beach and Conway have applied heightened scrutiny to industrial uses that require new substations or major utility expansion.
As towns and counties apply stricter review standards, the availability of suitable sites for large‑load digital infrastructure narrows.
Artificial intelligence (AI) depends on data centers that require significant electrical load, continuous cooling, and substantial land. When local governments slow or restrict these projects, AI growth becomes constrained by infrastructure rather than innovation. Delays in permitting, requirements for utility upgrades, and limits on water availability create a bottleneck that slows the pace at which new computing capacity can be added.
For communities in the Carolinas, the pushback reflects a desire to balance technological growth with water availability, electrical reliability, and long‑term land‑use goals. As national resistance continues to grow, regional planning boards are signaling that protecting rate stability, infrastructure capacity, and community character remains central to decision‑making.
Content may be developed with AI assistance and is always reviewed, verified, and refined by Coastal Carolina News staff before publication.
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