Data-center law in North Carolina
Subnational jurisdiction · as of 2026-09-06
North Carolina's data-center permitting spine runs through county zoning and special use permits under General Statutes Chapter 160D, the statewide North Carolina State Building Code for construction, and the state's Sedimentation Pollution Control Act for land-disturbing activity above one acre.
North Carolina's environmental policy act is markedly narrower than California's CEQA: it requires a detailed environmental impact statement only from a state agency action involving significant expenditure of public money or use of public land, so a privately funded, privately sited data center ordinarily falls outside it.
A data center's own backup generator fleet permits through the state's air quality permitting statute; a utility's own new grid-scale generation, as distinct from a data center's own equipment, requires a Utilities Commission certificate of public convenience and necessity tied to the state's statutory carbon-reduction goal.
North Carolina's principal data-center incentive is a sales and use tax exemption for datacenter equipment and electricity, running in two tiers: an older 'eligible internet datacenter' exemption requiring a $250,000,000 investment, and a newer 'qualifying datacenter' exemption requiring a $75,000,000 investment and a wage-standard certification. These two live provisions are subsections (55) and (55a) of the sales and use tax exemption statute, not (55a) and (55b) as sometimes cited.
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Instruments on record
8 instruments on record, grouped by the family of approval each one governs.
Land use
Who decides whether a data center may occupy a site, and through what approval?
Quasi-judicial zoning decisions; special use permits
In force
N.C. Gen. Stat. § 160D-705
Applies to both
Where a zoning ordinance conditions a use on a special use permit, the board of adjustment, planning board, or governing board hears and decides the permit application under this section, which also sets the conditions the local government may and may not attach. The current codified text has been amended repeatedly since Chapter 160D's 2019 creation, most recently in 2025, with no single stated commencement date for this form of the section.
Source: Full text of law
Zoning, grant of power
In force
N.C. Gen. Stat. § 160D-702
Applies to both
A local government may adopt zoning regulations governing the height, size, and location of buildings and structures, lot coverage, density, and land use; this power reaches development on land owned by the State as well as private land. The current codified text has been amended in nearly every session since Chapter 160D's 2019 creation, most recently in 2025, with no single stated commencement date for this form of the section.
Source: Full text of law
Environmental review
What impact review must precede approval, and who leads it?
North Carolina Environmental Policy Act
In force
N.C. Gen. Stat. §§ 113A-1 to 113A-13
Applies to government
Requires a detailed environmental statement from a State agency, addressing direct and unavoidable environmental effects, mitigation, alternatives, and irreversible impacts, but only for a recommendation or report on an action involving significant expenditure of public money or use of public land for a project significantly affecting environmental quality. This duty attaches to a State agency's own action rather than to private discretionary approvals generally, unlike California's CEQA.
A privately funded project on private land that needs only local permits is therefore ordinarily outside its scope. The Act originated in 1971 and has been amended repeatedly since; the codified text states no single commencement date for its current form.
Source: Full text of law
Energy and grid
What authorizations govern grid connection and onsite generation?
Certificate for construction of a generating facility
In force
N.C. Gen. Stat. § 62-110.1
Applies to both
No public utility or other person may begin construction of a facility for generating electricity for public utility service without a certificate from the Utilities Commission that public convenience and necessity requires the construction. For a certificate to construct a generating facility by an electric public utility, the Commission must find that the facility is part of the least-cost path to the state's authorized carbon-reduction goal and will maintain or improve grid reliability.
The current codified text originated in 1965 and carries a multi-decade amendment history with no single stated commencement date for this form of the section.
Source: Full text of law
Construction
What codes and permits govern the build itself?
North Carolina State Building Code
In force
N.C. Gen. Stat. § 143-138
Applies to both
Establishes the statewide North Carolina State Building Code, adopted by the Building Code Council, applicable throughout the State from the time of adoption and enforced by local building officials. The current codified text originated in 1957 and carries a multi-decade amendment history with no single stated commencement date for this form of the section.
Source: Full text of law
Sedimentation Pollution Control Act, mandatory standards for land-disturbing activity
In force
N.C. Gen. Stat. § 113A-57
Applies to both
Land-disturbing activity that will disturb more than one acre requires an approved erosion and sedimentation control plan filed at least 30 days before the activity begins, and requires erosion control devices sufficient to retain sediment on the tract during construction. The Act originated in 1973 and has been amended repeatedly since; the codified text states no single commencement date for its current form.
Source: Full text of law
Air and operations
What permits govern backup generators and ongoing emissions?
Control of sources of air pollution; permits required
In force
N.C. Gen. Stat. § 143-215.108
Applies to both
No person may establish or operate an air contaminant source, or build or operate equipment likely to cause air pollution, without a permit from the Environmental Management Commission. A backup diesel or gas generator fleet permits under this section. The current codified text originated in 1973 and carries a multi-decade amendment history with no single stated commencement date for this form of the section.
Source: Full text of law
Public agreements
What fiscal agreements attach a data center to its host jurisdiction?
Sales and use tax exemption for a qualifying datacenter and an eligible internet datacenter
In force
N.C. Gen. Stat. § 105-164.13(55), (55a); § 105-164.3(79), (201)
Applies to private
North Carolina exempts from sales and use tax the electricity used at, and specified equipment located and used at, two categories of datacenter.
Subdivision (55) exempts electricity and eligible business property at an eligible internet datacenter, defined at section 105-164.3(79) as a facility used primarily by a software-publishing or internet-activity business where the Secretary of Commerce has made a written determination of at least $250,000,000 in private investment within five years of construction commencing.
Subdivision (55a), added later, separately exempts electricity and datacenter support equipment at a qualifying datacenter, defined at section 105-164.3(201) as requiring a written Commerce Department determination of at least $75,000,000 in private investment within five years, a wage-standard certification for the datacenter's development tier area, and a certification that the datacenter provides health insurance for its full-time employees.
A taxpayer that fails to make the required investment, or that puts the exempted property or electricity to a disqualifying use, forfeits the exemption and owes past taxes plus interest. These two live provisions are subsections (55) and (55a); a datacenter exemption is not found at a subsection (55b) of this statute. This section's own amendment history runs through 2025 with no single stated commencement date for its current form.
Source: Full text of law
Every entry cites the instrument it describes.
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