Hildebran data center pause could intersect with state legislation

Hildebran’s yearlong pause on data center development comes as North Carolina lawmakers consider statewide restrictions that could directly affect DigiPower X’s proposed artificial intelligence data center in town.

House Bill 730, the Ratepayer Protection Act, passed the N.C. House 69-44 in June but has stalled in the Senate Rules Committee. A post-election legislative session later this year may represent the final opportunity for lawmakers to act during the current term.

The bill would require data center developers to provide local governments with assessments addressing noise and efforts to minimize water consumption. It would prohibit evaporative cooling systems, adversary-nation ownership and the use of eminent domain to assemble sites.

Of particular importance to local governments and utility customers, data center operators would have to enter electric service agreements designed to prevent other customers from bearing costs created by the facilities. Local governments also would be prohibited from offering economic incentives for data center projects.

Rep. John Lowery, R-Robeson, said lawmakers should “make data centers cover the costs they create, protect private property and give local communities a strong voice in the process.”

The legislation comes as Hildebran is deciding what to do about a potential project of its own.

DigiPower X owns approximately 40 acres in Hildebran and continues to identify the property as a future AI data center campus. In an Aug. 14 investor report, the company said it was advancing development planning for the site.

Hildebran Town Council subsequently imposed a 12-month moratorium on development approvals for Critical Digital Infrastructure Facilities.

Town Manager Logan Shook said the unanimous decision gives council members more time to learn about the industry and examine its impacts and benefits.

The state legislation now adds another consideration to Hildebran’s yearlong review.

If HB 730 clears the Senate and becomes law, Hildebran could emerge from its moratorium facing a different statewide regulatory environment than the one in place when the pause began.

—AVN