North Carolina's Democratic Senate nominee, Roy Cooper, is recalibrating his position on the rapid expansion of data centers, a shift that places him at odds with his past support for the industry's growth through tax incentives. Cooper, who previously served as North Carolina's governor, now frames data centers as a significant contributor to rising energy costs for consumers, aligning himself with broader concerns about affordability.
"We need to make sure data centers pay for their own power and we need to encourage them to build their own energy sources because right now that’s causing rates to go up for consumers and we can’t have that," Cooper stated in a recent interview. This pivot aligns him with other Democrats seeking to address economic pressures by holding corporations accountable for their utility usage.
During Cooper's tenure as governor, which began in 2017, North Carolina had already established tax breaks for data centers. A 2016 statute, G.S.105-164.13, expanded sales tax exemptions for companies investing at least $75 million in data center projects over five years. Commercial real estate firm CBRE reported a significant increase in data center construction during this period, with investments multiplying.
Cooper's administration also provided additional incentives. In 2019, Apple received a Job Development Investment Grant (JDIG) for its data center development in Maiden, North Carolina. This grant included $845 million over 39 years and $112.4 million for rural infrastructure. At the time, Cooper lauded the project, projecting it would create 3,000 jobs and highlighting North Carolina's favorable business climate.
Other companies, including Meta, Corvid Technologies, GIGA, Microsoft, Segra, and Google, also saw data center projects or expansions in North Carolina during Cooper's governorship. Corvid Technologies, for example, received a $9 million state reimbursement through a JDIG to construct data centers, a development Cooper praised for bringing engineering jobs to the region.
However, the landscape has evolved. Cooper's successor, Gov. Josh Stein, has pointed to data centers as a driver of rising utility costs, particularly from providers like Duke Energy. Stein has criticized proposed rate hikes, arguing they strain families already struggling with expenses.
Cooper has echoed these concerns, referencing his past efforts as governor and attorney general to combat utility cost increases. He noted vetoing legislation that he argued prioritized utility company profits and engaging in legal battles to lower Duke Energy's profit margins.
While not advocating for an outright ban on data centers, Cooper's current platform emphasizes that these facilities should bear the full cost of their energy consumption. "The companies that build these data centers must pull their own weight, pay for the power they use and completely remove this burden from North Carolina families and small businesses," he stated.
The Cooper campaign has clarified his stance, asserting that local communities should determine the regulations for data center expansion, including potential moratoriums. The campaign also reiterated that data centers must cover all their energy costs without passing them on to consumers.
Cooper, having cleared his primary election, is now preparing for the general election on November 3.