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The Data Centers Next Door · Stop 6 of 6

Data centers aren't the enemy. Bad deals are.

Even President Trump got Amazon, Google, Meta, Microsoft, OpenAI, Oracle, and xAI to sign a pledge saying data center companies should pay their own way: build, bring, or buy your own power, and stop passing costs onto families. In July 2026 he expanded it to nearly 200 utilities and governors. It's voluntary, and analysts doubt a pledge alone holds bills down, but the principle is now on White House paper. I agree with the principle. So why does North Carolina keep cutting deals where a couple people win and everyone else pays?

a good deal has more than one winner
Updated July 29, 2026

What I'd file on data centers

Raleigh is behind, and slow on purpose. Over 300 data center bills were filed in 30+ states in just the first six weeks of 2026. Oregon has a dedicated rate-class law on the books, Virginia and Pennsylvania regulators have approved rules making data centers carry their own grid costs, and Indiana's House has passed revenue sharing. North Carolina's one serious attempt, SB 730, passed the House in June and stalled in Senate Rules. Most of the tax exemptions survived the budget. At least four NC counties have passed their own moratoriums rather than wait.

So, six proposals. One principle: if you're going to profit here, the community profits too.

statewide zoning

File legislation creating a statewide zoning classification for data centers with minimum standards for community engagement, environmental review, and conditional permitting: binding operating limits with independent monitoring, not developer promises at a public hearing. No more counties making this up as they go... shoehorning data centers into heavy manufacturing because nothing else fits, then accidentally opening a dozen other sites to by-right development with no public process.

other states are already doing this

Maryland overrode the governor's veto to pass a mandatory data center impact study and is advancing bills requiring transparent public approval processes and operator disclosure reports. New York introduced a statewide moratorium on permits for data centers over 20 MW until a Generic Environmental Impact Statement is completed. Over 300 data center bills were filed across 30+ states in just the first six weeks of 2026. Four NC counties have already enacted their own temporary moratoriums because the state won't act.

community benefits framework

Statewide minimum requirements for benefit sharing, clawback provisions with real teeth, and public reporting that applies to every deal: jobs delivered, water used, power drawn, taxes paid versus incentives taken, on a dashboard anyone can check. Same rules everywhere. No more race to the bottom between counties trying to outbid each other with your money.

And this is where the promises from Stop 1 come due. Project Delta's developer has pitched 250 to 500 permanent jobs and $40 million a year in tax revenue. Those are the developer's own numbers, so write them into the contract, with a clawback if they don't show up. A company that believes its own pitch loses nothing by signing it.

Require a percentage of tax savings to flow into a locally controlled Community Betterment Fund. Not a corporate donation or a PR gesture: a fund the community controls and decides how to spend. Broadband. Schools. Infrastructure. Whatever the community actually needs.

And build the framework the way labor builds Community Benefits Agreements: binding local-hire targets for construction and operations, registered apprenticeships on the build, training pipelines through the community colleges already here, negotiated with the community and enforceable in court. Not a press release with a ribbon on it.

other states are already doing this

Cedar Rapids, Iowa negotiated exactly this. Google pays $400,000/year for 15 years into a city-managed Community Betterment Fund. QTS contributes up to $18 million over 18 years. The city council decides how the money gets spent. Indiana's House passed HB 1333 (2026), which would require data centers to share 1% of their sales tax exemption savings with local governments. Cleveland has required Community Benefit Agreements since 2013, including local hiring targets, mentorships, and apprenticeships. And Forsyth County has run the clawback experiment itself. The Dell story below is the proof.

side story · the time the clawback worked

In 2004, North Carolina offered Dell a package worth nearly $280 million in state and local incentives to build a computer plant in Forsyth County. Dell promised 1,500 jobs. The plant closed in less than five years, and 905 people lost theirs.

Winston-Salem and Forsyth County had written real clawback provisions into their deal: leave before five years, repay, within 30 days. Dell paid back $26.1 million to local governments. The state's contract didn't have the same teeth, and it recovered just $1.5 million of the $8.5 million it had already paid out through JDIG grants.

Local clawbacks worked because someone wrote them into the contract. That's exactly why North Carolina needs a statewide standard.
separate rate class for data centers

Create a dedicated electricity rate class for large data center facilities so they pay their own way on the grid. No more shifting infrastructure costs onto residential customers. If you're consuming a small city's worth of electricity, you should be paying for the infrastructure to deliver it.

SB 730's cost protections are the start of this idea. A dedicated rate class goes further, and it shouldn't switch off at 100 megawatts, so nobody escapes it by designing at 99.

And repeal the worst provisions of SB 266, the "Power Bill Reduction Act": the fuel-cost shift onto families and the removal of the interim carbon target. The Power Bill guide covers that law in full.

other states are already doing this

Oregon signed the POWER Act (2025), creating a dedicated electricity rate class for facilities using 20+ MW. They must sign 10-year contracts, pay for new transmission infrastructure, and cover minimum energy costs. Passed with bipartisan support. Virginia's SCC approved a new GS-5 rate class (Nov 2025) requiring 14-year contracts and minimum 85% of contracted distribution and transmission demand. Pennsylvania's PPL Electric reached a settlement (2026) requiring data centers to pay all infrastructure costs, contribute $11 million to low-income ratepayer assistance, and commit to 10-year operations with early-exit penalties.

bring your own power, by the rules

Above a size threshold, self-supply should be part of the deal: generate or contract a real share of your own power, and commit to curtailment when the grid is stressed, before leaning on capacity everyone else pays for. This one isn't even radical anymore. The affordability study the House ordered inside SB 730 explicitly lists requirements that large customers generate a portion of their own power, and curtailment policies, in its scope. The White House pledge asks hyperscalers to build, bring, or buy all the energy they need.

One non-negotiable rider: on-site generation gets permitted like the power plant it is, with no "temporary" turbine dodge. In Memphis, xAI ran dozens of gas turbines for months without air permits, next to neighborhoods with some of Tennessee's highest asthma rates. Self-supply without permitting rules just moves the cost from everyone's bills to the nearest lungs. Stop 2 has the neighbors' version.

this is already on the table

SB 730, Section 8 orders a study, due May 2027, on preventing large-load rate impacts, and its scope explicitly includes self-generation requirements and curtailment policies for large customers. The Ratepayer Protection Pledge, expanded in July 2026 to nearly 200 utilities, developers, and governors, runs on the same build-bring-buy principle, and utility agreements under it in Indiana and Michigan are projected to return over a billion dollars to customers. None of it binds anybody, which is the argument for writing it into law.

jobs-per-megawatt accountability

A Food & Water Watch analysis of Virginia's economic development data found that creating one permanent data center job requires nearly 100 times more investment than a non-data-center job. These projects create temporary construction work, a handful of HVAC and security positions, and then a skeleton crew with management flown in from somewhere else.

If a facility is consuming a small city's worth of electricity, tax benefits should be tied to a minimum ratio of permanent local jobs to energy consumption. Fall below it, benefits phase out. And require actual workforce development... apprenticeship programs, internship pipelines, partnerships with local community colleges, with numbers attached instead of "we'll try to hire locally."

other states are already doing this

Virginia's JLARC found data center tax exemptions cost the state $1 billion in FY2024, up from $685 million the year before. $2.7 billion total over the past decade. The Virginia Senate is now proposing to phase out the exemption. Georgia tried to suspend new data center tax exemptions in 2024. The governor vetoed it. In 2026, a bipartisan package would repeal the incentives entirely. North Carolina hasn't even started this conversation.

community consent

The five proposals above are about money and machines. This one is about the part that broke first in this story: nobody asked. Write the asking into law, as statewide minimums for approving any large data center:

No code-name votes. No rezoning vote until the power draw, the water demand, and the kind of tenant are stated in the application itself. If a number exists for a TV interview, it exists for the county file.

Questions get answers on the record. A public information meeting shouldn't count as engagement when the applicant's own report lists the neighbors' question and answers none of it.

The town next door gets standing. Formal notice and a formal role for any municipality a project would sit beside, even when the parcel stops just outside its line.

Overriding your own experts costs something. Commissioners can still vote against their planning board. They should have to publish written findings explaining why.

the receipts are in this guide

Every plank traces to something that already happened here: the megawatt figure missing from Delta's filings, the power question listed with no answer in the July meeting report, the town across the street with no vote, and two planning boards overruled. It isn't hypothetical elsewhere either. Tucson's city council unanimously rejected "Project Blue" in August 2025 after years of NDA-shrouded negotiation; the secrecy itself became the story. And Maryland's transparency bills and New York's proposed pause, cited under the zoning proposal, put the same idea into statute: the public sees the real numbers before anybody votes.

One more thing about that last proposal, because it sounds like the soft one. It isn't. Skipping the community didn't buy these projects speed: Delta's shortcut bought a lawsuit, a moratorium fight, and a refiled application. The one part of the project that clearly improved, the nighttime noise cap, improved because neighbors showed up. And Cedar Rapids, which negotiated with its community from the start, got a betterment fund instead of a court date.

sources for this page (34)
Trump Ratepayer Protection Pledge · White House, Mar 2026 Pledge expanded to utilities + governors · White House, Jul 2026 Analysts on the nonbinding pledge, bills could still jump · Fortune, Jul 2026 Stokes County rezoning · Business North Carolina, Jan 2026 Stokes County rezoning · WUNC, Jan 2026 Developer's jobs and tax revenue pitch · FOX8/WGHP, June 2026 Stokes County lawsuit · SELC, Mar 2026 Stokes County lawsuit · Inside Climate News, Mar 2026 Stokes County lawsuit · NC Newsline, Mar 2026 Dell/Forsyth County · WRAL, Oct 2009 Dell/Forsyth County · Winston-Salem Journal Dell repays $26M in local incentives · WWAY, Oct 2009 Dell returns $1.5M in state JDIG grants · WRAL, 2009 SB 266 · NC Justice Center, June 2025 SB 266 NCSU analysis · NC Newsline, July 2025 SB 266 · NC Sustainable Energy Association NC State analysis: eliminating carbon target could cost $23B · NCSEA, 2025 NC data center pushback · NC Health News, Mar 2026 Data center industry job claims debunked · Food & Water Watch, Jan 2026 Maryland data center impact study veto override · Technical.ly, 2025 Virginia GS-5 data center rate class · American Action Forum Cedar Rapids Community Betterment Fund · The Gazette Indiana HB 1333 (1% revenue sharing) · IPM News, Feb 2026 Why CBAs are necessary for data centers · Brookings Institution Oregon POWER Act · Clean Energy Transition Institute, 2025 Data center opposition grows across NC · Axios Raleigh, Feb 2026 Pennsylvania PPL data center settlement · WHYY, 2026 Data centers in Virginia · JLARC, 2024 Virginia data center tax breaks cost $1B · Governing, 2024 Virginia phasing out data center tax credit · Virginia Mercury, Feb 2026 Data center tax breaks on the chopping block · Stateline, Feb 2026 Best reforms for data center subsidies · Good Jobs First 2025-2026 Legislative Goals Package · NC Association of County Commissioners, Nov 2024 Tucson council unanimously rejects Project Blue · AZ Luminaria, Aug 2025

Why counties say yes to bad deals

None of the six proposals above answers the question sitting under this whole guide: why do counties keep saying yes to projects their own boards flag? Because Raleigh built the hunger. The state writes the county to-do list and keeps making it longer without money attached, exempts this industry's equipment from the taxes counties would have collected, and killed the school funding case. A county that can't pay for a jail or a school roof any other way will look hard at any project with a tax base attached, flags and all. The property tax guide has the receipts.

So the last fix is the oldest one, and it isn't about data centers at all:

Give counties a way to pay their bills that isn't "approve whatever lands," and the next Project Delta gets judged on its merits.