North Carolina 2025-2026 Regular Session

North Carolina House Bill H1189

Introduced
4/30/26  

Caption

Datacenter Transparency Act

Impact

The implications of HB 1189 on state laws are significant, particularly in how datacenters are regulated and their financial interactions with the state through tax exemptions. The bill requires datacenters to submit extensive documentation regarding their operations, including local benefits provided, employee information, and start-up expenditures. Furthermore, the Department of Commerce is tasked with reporting on the revenue impacts arising from tax exemptions granted to these facilities, presenting a clearer picture of their fiscal contribution to the state economy.

Summary

House Bill 1189, titled the Datacenter Transparency Act, aims to establish a two-year moratorium on the issuance of permits required for the siting of datacenters in North Carolina. The primary objective of this moratorium is to grant the General Assembly the necessary time to assess the potential impacts that proposed datacenters may have on various aspects such as electricity demand, water supply, and local property values. The Act also mandates a comprehensive study to be conducted by the North Carolina Collaboratory, examining the repercussions of datacenters on the state's resources and recommending legislation to mitigate any identified negative effects.

Sentiment

The sentiment surrounding the bill is mixed, as it highlights a critical balancing act between fostering technological growth and ensuring environmental and community safeguards. Supporters of the bill view it as a proactive measure to ensure that the burgeoning datacenter industry operates transparently and responsibly. Critics, however, may express concerns about the potential for delayed economic development due to the moratorium, viewing it as a hindrance to the burgeoning technology sector.

Contention

Notable points of contention refer to concerns regarding the environmental implications of datacenters, particularly related to power consumption, water usage, and potential impacts on the local ecosystems and property values within proximity. The requirement for a thorough impact assessment before any new datacenter can be established brings attention to the need for sustainable practices in the tech industry. The ongoing debate reflects the urgency to harmonize the growth of digital infrastructure with responsible governance and local community interests.

Companion Bills

No companion bills found.

Previously Filed As

NC S08037

Establishes a datacenter utility rate classification, providing targeted congestion management incentives for upstate New York, and regulating off-grid power connections for datacenter operations.

NC H581

Career Pathways Transparency Act

NC H471

Food Labeling Transparency Act

NC H1184

Voucher School Transparency Act

NC H816

Voucher School Transparency Act

NC H878

Increased Academic Transparency

NC S782

Safe Schools Transparency Act

NC S628

Safe Schools Transparency Act

NC S839

Price Transparency Act

NC H178

Budgeting Accountability and Transparency

Similar Bills

NY S08037

Establishes a datacenter utility rate classification, providing targeted congestion management incentives for upstate New York, and regulating off-grid power connections for datacenter operations.

MS SB2599

DPS property in Lauderdale County, Mississippi; authorize DFA to sell and convey.

MS HB1732

Public property; authorize Department of Finance and Administration to sell and convey.

TX SB2321

Relating to the regulation of emissions by the Texas Commission on Environmental Quality during an event affecting electric demand or grid reliability.

SC H4925

Sales Tax Exemption

SC S0784

Energy

SC H5484

Energy Affordability Act

NH HB1124

Relative to the right to compute.