Section 1.

Defines datacenter as a facility designed to have a load of 100 megawatts or more with a primary purpose to store, manage, and process digital data through information technology and network telecommunications equipment and related facilities and infrastructure.

Establishes a moratorium on permits, certifications, or approvals required by a State agency or local government for datacenter siting in North Carolina. Provides that moratorium’s purpose is to allow NCGA to evaluate datacenter impacts. Sets out moratorium duration from August 1, 2026, to August 1, 2028.

Directs the North Carolina Collaboratory at the University of North Carolina at Chapel Hill (Collaboratory) to study datacenter impacts and provide recommendations to address identified negative impacts. Requires the study to assess potential impacts on the State’s electric grid, water supply, wastewater treatment facilities, air quality, noise, property values, and other pertinent matters in cooperation with specified agencies. Requires Collaboratory to report findings and any proposed legislation to the specified NCGA committees by December 1, 2027.

Appropriates $200,000 for 2026-27 from the General Fund to the Collaboratory to conduct the study.

Section 2.

Enacts GS 105-164.13G regarding sales tax exemptions for datacenters. Defines datacenter as an eligible internet datacenter or qualifying datacenter per GS 105-164.3. Requires a datacenter that purchases an item exempt from sales tax under GS 105-164.13 to obtain an exemption certificate from the Department in order to receive the exemption. Provides that exemption certificates must be renewed annually.

Authorizes a datacenter that has not commenced construction to apply for a conditional exemption certificate. Provides that a datacenter that does not meet application requirements within 90 days of the end of the taxable year becomes liable for any taxes on which an exemption was claimed. Such taxes are due when the conditional exemption certificate expires and subject to interest.

Lists required information and documentation that must be submitted to the Secretary to receive an exemption certificate or a conditional exemption certificate.

Effective July 1, 2027, and applies to purchases occurring on or after that date.

Requires datacenters sited or under construction in the State as of the Act’s effective date to provide the same information and documentation to the Department of Revenue and the Department of Commerce for the five most recent taxable years the datacenter has claimed an exemption under GS 105-164.13 by December 1, 2026. Directs Department of Commerce to aggregate the data and submit annual reports on lost revenue by March 1 to the chairs of the House and Senate Finance Committees.

Except as otherwise provided, effective when the act becomes law.