Key Takeaways

  • Energy Storage Solutions withdrew its Edgecombe County AI data center proposal after delays, local resistance, and investor concerns.
  • Residents questioned the project’s effects on water supplies, electricity costs, air quality, and quality of life.
  • The decision reflects a wider siting challenge as communities seek more evidence about data center infrastructure demands and economic benefits.

Energy Storage Solutions has ended plans for a $19.2 billion AI data center campus in Edgecombe County, North Carolina, after community opposition and discussion of a possible two-year moratorium complicated the project’s path forward.

The county manager announced at a recent Edgecombe County Board of Commissioners meeting that Energy Storage Solutions was no longer pursuing the proposal. Commissioners also voted to return the deposit Energy Storage Solutions had placed on land in Kingsboro Business Park.

“That project is officially off the table for consideration from the board,” the county manager said.

The proposed site included wooded property near Kingsboro, with one parcel covering more than 20 acres and another encompassing about 100 acres. Energy Storage Solutions had presented the development as a major economic investment for Eastern North Carolina, but residents pressed officials for more information about electricity, water, backup generation, noise, and the long-term public cost.

Investor support weakened as those questions slowed the process. The company president said investors “insisted that we move forward with other projects that we have in friendlier communities.”

A related dispute in Tarboro also appears to be nearing its end. The Tarboro Town Council rejected an Energy Storage Solutions permit application in a 6-1 vote in September, prompting litigation. The company president said Energy Storage Solutions expected to withdraw that lawsuit after reaching a settlement with the town, adding that the developer would not build a data center there.

This withdrawal aligns with a broader national trend. According to Data Center Watch, local opposition disrupted at least 75 U.S. data center projects valued at more than $130 billion during Q1 2026. The organization's two-year census also identified $18 billion in blocked projects and another $46 billion in delayed developments, with 142 organized opposition groups operating across 24 states.

These figures demonstrate that community engagement is now a critical financial and scheduling factor. Developers may secure land and incentives, yet still face months of uncertainty if utility arrangements, environmental effects, or tax assumptions remain unclear.

In Edgecombe County, one community member argued during public comments that a modest tax-rate reduction would not offset the potential loss of scarce water, increased air pollution, or higher electricity rates. Residents also pointed to falling groundwater levels and described the Tar River as being at a historic low.

Electricity demands face intense scrutiny. Data centers are expected to account for about 80% of Duke Energy’s forecast load growth in North Carolina, according to a 2026 state energy-policy estimate. This anticipated grid strain explains why residents are demanding detailed cost-allocation and grid-expansion plans before construction begins.

Technical efficiency claims alone rarely settle zoning debates. Communities increasingly require site-specific projections covering peak power demand, cooling methods, water consumption, generator testing, emissions, transmission upgrades, and infrastructure financing responsibilities.

Industry standards provide a baseline for these discussions. ASHRAE publishes environmental guidance addressing temperature, humidity, cooling, and operating conditions for data centers. The Uptime Institute Tier standards address resilience and infrastructure design. However, neither framework alone resolves local questions regarding water availability, ratepayer exposure, land use, or tax incentives.

The Edgecombe County Board of Commissioners voted in June to schedule a public hearing on a proposed two-year data center moratorium. The board chair stated that community feedback heavily influenced this position. Another commissioner characterized the possible pause as an opportunity to gather accurate impact data rather than permanently closing the county to development.

Amazon’s recently approved $10 billion data center in another North Carolina county demonstrates that outcomes can differ sharply inside the same state. Conversely, Natalli Investments has withdrawn proposals near Apex amid organized opposition and zoning pauses. For data center developers, early disclosure regarding utility requirements, environmental safeguards, and infrastructure financing increasingly determines whether a multibillion-dollar project advances or is abandoned.