North Carolina has become a prominent hub for data centers in the United States due to a combination of strategic location, favorable economic policies, and robust infrastructure.
Strategic Location and Infrastructure
Situated on the East Coast, North Carolina offers proximity to major metropolitan areas like New York, Washington D.C., and Atlanta. This location provides excellent connectivity and market access, making it an attractive site for data centers. The state has invested significantly in fiber-optic networks and high-speed internet connectivity, ensuring reliable and fast communication capabilities for businesses.
Economic Incentives
North Carolina provides substantial tax incentives for data center operations. These include exemptions from sales and use tax on electricity and support equipment for qualifying data centers. To qualify, a data center must invest at least $75 million in private funds within five years. These incentives significantly reduce operational costs, making the state financially attractive for data center investments.
Energy Resources and Sustainability
The state offers competitive electricity rates and has a growing commitment to renewable energy sources. Major tech companies like Amazon, Google, and Microsoft have entered agreements with Duke Energy to develop new electricity rate structures aimed at supporting carbon-free technologies, such as small modular reactors and long-duration energy storage. This focus on sustainable energy solutions aligns with the environmental goals of many corporations operating data centers.
Presence of Major Tech Companies
North Carolina hosts data centers for several major technology firms. For instance, Apple’s data center campus near Hickory is one of the world’s largest and is supported by the largest privately owned solar farm in the United States. Similarly, Facebook has established a data center in Forest City, utilizing innovative cooling technologies to enhance energy efficiency.
Business-Friendly Environment
The state’s pro-business policies, combined with a skilled labor force and strong research and education ecosystem, create a supportive environment for data center operations. Areas like Charlotte and Raleigh offer a combination of affordable real estate, facilities, and competitive electricity rates, allowing companies to achieve significant cost savings without compromising on quality or reliability.