Artificial Intelligence

Data Center Wars: North Carolina Resists Innovation While Texas Considers Market-Based Rules

As data centers dominate public debate, two states reveal their approach. Texas has taken a stance in line with market needs, while North Carolina reacts to fear and bad press.

Tosin Akintola | 6.5.2026 3:00 PM

Share on FacebookShare on XShare on RedditShare by emailPrint friendly versionCopy page URL Add Reason to Google

Media Contact & Reprint Requests

(Illustration: Anattawut/Dreamstime)

According to a recent Gallup poll, 71 percent of Americans would oppose the construction of a data center in their community, largely due to concerns over potential environmental impacts, quality of life, and energy affordability. This strong public opposition has left state lawmakers scrambling to regulate new and existing data centers, even in states with low energy prices. 

In North Carolina—where the residential cost of electricity is about 13.8 percent lower than the national average—the state Senate is currently considering the Ratepayer Protection Act. This bill would likely increase the cost of data center development in the Tar Heel State by requiring every data center proposal with a peak monthly demand of "100 megawatts or greater" to include noise assessments for schools and homes "within 500 feet" of the project, and force developers to implement more expensive cooling systems within their facilities.  

While the bill takes positive steps to end government paternalism by prohibiting local tax credits........

© Reason.com