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The story in Matthews is the same story everywhere. Proposed data centers are being rejected by communities across the board. The “Project Accelerate” data center in Matthews, NC was withdrawn by its developer, Crosland Southeast, following significant community opposition where residents voiced concerns over potential increases in electricity bills, noise, and water usage, which led to the developer withdrawing the rezoning application in early October 2025. It means some policy makers and residents alike are uneducated about how to include forward-thinking in their future planning. That is dangerous ground. Because we, as residents, have no intention of curbing our data use. Hospitals, large employers, transportation plans, schools, police, and more are all hungry for more bandwidth. But we can’t forget, the explosion of our digital world is also the key to economic health. Jobs, education, and research all rely on the expansion of data.
A Google result encapsulates the issue by saying “The demand for digital services like cloud computing, AI, and the internet is exploding. These facilities are the essential physical infrastructure to process, store, and distribute data. This growth is driven by the massive increase in data usage from online activities, the rise of remote work, and the computational power needed for AI models, requiring more capacity than existing data centers can provide.”
The pushback seems virtuous, but not quite heroic. Dgtl Infra 2.0 is just one site that talks about the concern. But they also give us realistic advice around how to approach a solution so we can also be effective. Yes, additional water needed for these centers is staggering and managing it is a true concern. Wholesale and retail data centers use approximately 18,000 gallons per day or 6.57 million gallons per year. Larger facilities publish usage numbers 20X that. Power grids have to expand to carry the load as well. But this isn’t something we should reject. Otherwise what we’re saying is we want the frosting, but we don’t want the calories.
So, then. How do we approach this problem with logic instead of being stuck in panic? Will this be another NIMBY crusade? We hope not.
McKinsey & Company, a leading voice in the data world, tells us the following. “States that can effectively plan, manage, and mitigate the risks of data center growth stand to unlock millions, perhaps even billions, of dollars in direct and indirect growth. At the same time, they can create high-paying jobs and establish themselves as leading digital-infrastructure hubs. Read more.”
My Take: This stalemate is one of REBIC’s top concerns because it touches every sector of our membership focusing on the issue of growth, water, sewer, and fair land use plans. And the fact is, increasing data needs are coming no matter what. The voices of those against these data centers speak fear and criticisms into the same sentences that insists their digital devices need to work fast, that health care breakthroughs should keep coming, and that their children must get the best education. As I’ve said before, if we don’t all come to the table with truth and plans, instead of emotion, we will be left out of the loop when it comes to providing high paying jobs, civic safety, and ongoing opportunity. We can’t have it both ways.
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On October 6, 2025, Governor Josh Stein allowed House Bill 926 (Regulatory Reform Act of 2025) to become law without his signature. Although the Governor did not sign the measure, he took no action within the 10-day period prescribed by the North Carolina Constitution, thereby allowing the bill’s provisions to take effect without his signature. Most provisions are effective immediately and may now be relied upon by builders, while certain sections have delayed effective dates as noted below.
As previously reported, the legislation includes several provisions of particular significance to the home building industry:
Allows model homes under construction to be exempt from water supply requirements when full fire-flow development is impractical or pending. This change enables model homes to be built and displayed more quickly once a temporary Certificate of Occupancy is issued. Importantly, no other homes in the development may proceed, and no staff or members of the public may enter the model home until the water supply is available. This provision is effective immediately.
Prohibits local governments from requiring roadway pavement design standards that are more stringent than the minimum pavement design standards adopted by the North Carolina Department of Transportation (NCDOT) for both public and private roads. This section becomes effective January 1, 2026, and applies to projects initiated on or after that date.
Prevents local inspection departments from charging fees or failing an inspection when a permit holder cancels a scheduled inspection at least one business day in advance. This provision is effective immediately.
Prohibits the Department of Environmental Quality (DEQ) from requesting additional information during a stormwater permit review that was not previously identified as missing or required by DEQ during its initial review. This provision is effective immediately.
Allows developers to proceed under the regulatory framework of a single jurisdiction when a property spans multiple local governments. In the absence of a mutual agreement between jurisdictions, the developer may elect to follow the regulations of the jurisdiction in which the majority of the development is located, and those regulations will apply to the entire project, including portions that extend beyond that jurisdiction. This provision is effective immediately.
Prevents local governments from imposing waiting periods on applicants who withdraw or are denied zoning map amendments, text amendments, or development approvals. This reform ensures developers can promptly refile withdrawn or denied development applications without unnecessary delays. This provision is effective immediately.
NCHBA extends our sincere appreciation to the members of the General Assembly for their continued support of regulatory reform, particularly the Chairs of the House and Senate Regulatory Reform Committees, Representatives Jeff Zenger (R-Forsyth), Allen Chesser (R-Nash) and Dennis Riddell (R-Alamance), along with Senators Steve Jarvis (R-Davidson), Tim Moffitt (R-Henderson) and Tom McInnis (R-Moore) for their leadership in advancing this important legislation.
If you have any questions about this legislation or other legislative matters, please reach out to Steven Webb at [email protected].
My Take: This kind of victory elevates us all. Every land development discipline should be celebrating this win and leveraging it verbally with their connections. A big thank you also to our NCHBA for their superior advocacy and vigilance of what makes real estate work best.
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