North Carolina HB 1189: Datacenter Transparency Act.

Bill Text

GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2025
H 1
HOUSE BILL 1189

Short Title: Datacenter Transparency Act. (Public)
Sponsors: Representatives Loftis, Ward, and Harrison (Primary Sponsors).
For a complete list of sponsors, refer to the North Carolina General Assembly web site.
Referred to: Rules, Calendar, and Operations of the House
May 5, 2026
*H1189-v-1*
A BILL TO BE ENTITLED 1
AN ACT TO: ESTABLISH A TWO-YEAR MORATORIUM ON THE ISSUANCE OF 2
PERMITS REQUIRED FOR SITING OF DATACENTERS; DIRECT THE 3
COLLABORATORY TO STUDY VARIOUS IMPACTS OF DATACENTERS; REQUIRE 4
DATACENTERS TO ANNUALLY SUBMIT DETAILED DOCUMENTATION AND 5
APPLY FOR AN EXEMPTION CERTIFICATE FROM SALES AND USE TAXES; AND 6
REQUIRE THE DEPARTMENT OF COMMERCE TO REPORT TO THE GENERAL 7
ASSEMBLY ON THE REVENUE IMPACTS TO THE STATE FROM THE SALES AND 8
USE TAX EXEMPTIONS FOR DATACENTERS. 9
The General Assembly of North Carolina enacts: 10
SECTION 1.(a) Definitions. – For purposes of this act, the term "datacenter" means 11
a facility that is designed to have a load of 100 megawatts or more and the primary purpose of 12
which is the storage, management, and processing of digital data via the interconnection and 13
operation of information technology and network telecommunications equipment, including all 14
related facilities and infrastructure for backup electricity generation, power distribution, 15
environmental control, cooling, and security. 16
SECTION 1.(b) Moratorium Established. – There is hereby established a 17
moratorium on the issuance of any permits, certifications, or approvals required by a State agency 18
or a local government for the siting of datacenters in this State. The purpose of this moratorium 19
is to allow the General Assembly time to evaluate the extent and scope of impacts from 20
datacenters proposed to be constructed and operated in the State as directed in subsection (c) of 21
this section. No State agency, including the Department of Environmental Quality and the 22
Utilities Commission, or local government in the State shall issue a permit, certification, or 23
approval for the siting of a datacenter for the period beginning August 1, 2026, and ending August 24
1, 2028. 25
SECTION 1.(c) Study. – The North Carolina Collaboratory at the University of 26
North Carolina at Chapel Hill (Collaboratory) shall study the impacts of datacenters and provide 27
any recommendations for legislation that the Collaboratory finds is needed to mitigate or 28
eliminate negative impacts identified. In conducting this study, the Collaboratory shall examine 29
impacts occurring in other states from the siting of datacenters. As part of its study, the 30
Collaboratory shall review all of the following: 31
(1) In collaboration with the Utilities Commission and the Public Staff, potential 32
impacts to: demands on the State's electric grid from the siting of datacenters 33
within the State; the projected need for expansion of current grid resources to 34

General Assembly Of North Carolina Session 2025
Page 2 House Bill 1189-First Edition
accommodate potential datacenters; and electricity rates paid by 1
non-datacenter customers due to datacenter growth in the State. 2
(2) In collaboration with the Department of Environmental Quality, potential 3
impacts to: the water supplies of the State; demands on wastewater treatment 4
facilities; and air quality and noise in areas within a 3-mile radius of 5
datacenters. 6
(3) In collaboration with the League of Municipalities and the Association of 7
County Commissioners, potential impacts to property values within a 3-mile 8
radius of a proposed datacenter. 9
(4) Any other pertinent matters as determined by the Collaboratory. 10
SECTION 1.(d) Report. – No later than December 1, 2027, the Collaboratory shall 11
report its findings, together with any proposed legislation, to the Environmental Review 12
Commission, the Joint Legislative Commission on Energy Policy, and the Joint Legislative 13
Oversight Committee on Agriculture and Natural and Economic Resources. 14
SECTION 1.(e) The sum of two hundred thousand dollars ($200,000) in 15
nonrecurring funds for the 2026-2027 fiscal year is appropriated from the General Fund to the 16
Collaboratory to conduct the study required pursuant to subsection (c) of this section. 17
SECTION 2.(a) Article 5 of Chapter 105 of the General Statutes is amended by 18
adding a new section to read: 19
"§ 105-164.13G. Exemption for datacenters. 20
(a) Definition. – For purposes of this section, a datacenter means an eligible internet 21
datacenter or a qualifying datacenter as defined in G.S. 105-164.3. 22
(b) Exemption. – A datacenter that purchases an item exempt from sales tax under 23
G.S. 105-164.13 must obtain an exemption certificate from the Department to receive the 24
exemption. An exemption certificate issued under this section is valid for the taxable year in 25
which the certificate is issued and must be renewed annually. In order to receive an exemption 26