The Actual Economic Impact of Data Centers on a Place? That’s a Secret.

North Carolina's tax breaks for data centers cost state and local governments up to $57 million annually, an amount that could increase significantly with proposed projects. Data center owners are not required to prove ongoing eligibility for these exemptions unless audited and can legally shield financial details, including energy and water usage. This lack of transparency limits state agencies' view of the sector's economic activity and energy use, making it difficult to assess the true impact of the incentives. Governor Josh Stein noted that the explosive growth of data centers was unforeseen when sales and use tax breaks were enacted in 2010 and expanded in 2015. Lawmakers would need to change reporting requirements to understand the true value of these exemptions and their economic benefits.