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Build Before the Bubble Bursts: Understanding the Business Model Behind the Data Center Boom in North Carolina
Sanford, NC- Clean Water for North Carolina is releasing a new report ahead of a key presentation in Lee County, where a developer wants to open a commercial gas well to power an AI data center. Build Before the Bubble Bursts: Understanding the Business Model Behind the Data Center Boom in North Carolina explores the economic conditions that brought about this proposal and the potential impact on North Carolina and Lee County. This report comes a few days before the Lee County Board of Commissioners’ March 16 meeting, where they will hear a presentation on the county’s options for regulating data centers and crypto-mining. The presentation comes after months of local residents raising their voices in opposition to a controversial proposal from Deep River Data. Deep River Data wants to power an artificial intelligence (AI) data center with gas from Butler Well #3 in Lee County. The proposal has drawn criticism from local residents, business owners, and clean water advocates. Community members will hold a press conference at 5:00pm to share their concerns before the county commissioners meeting at 6pm on Monday. Butler Well #3 is located near the Lee-Chatham county line, south of U.S. Highway 421, close to Cumnock & Sanford, NC. It is unlikely this well will produce any usable amount of gas without hydraulic fracturing (“fracking”). Fracking has never been used in North Carolina. Sheila Sherrick, a Lee County resident whose home and goat farm rely on her private well, said, “I can’t afford to have a poisoned well. I need clean water for me, my family, and my animals.” “Drinking water for municipalities from Sanford to Wilmington comes from the Deep and Cape Fear Rivers. This means that thousands of families, businesses, schools, institutions, Ft. Bragg; all, have the potential of contaminated water from fracking and data center development on the Deep River which flows into the Cape Fear. A moratorium is needed for time for more research and development of safer and cleaner solutions for the management of these two dirty industries.” said Donna Strickland, a Lee County resident. Hope Taylor, executive director of Clean Water for North Carolina, said, “Residents are right to be concerned about the potential impact of a proposed data center, given the large volume of water that would be required for cooling. That section of the Deep River sits over the Triassic Basin, and according to the US Geological Survey, These formations have poor drainage and low permeability, which significantly limits the ability of the ground to store and release water to the river during dry periods.” In addition to water issues, local businesses, clergy members, and newer residents expressed concerns about the economic impacts of this proposal. Steph Gans, assistant director of Clean Water for North Carolina, described the risks, “Most people who hear that a company wants to open a commercial gas well, purely to power an AI data center, are shocked. This idea is only possible in our current economic environment, where investors are willing to risk it all on AI, with no clear path to turning a profit on AI services. Our new report describes these and other issues with Deep River Data’s proposal. Eventually, the bubble will burst, leaving AI data centers that rely on inefficient chips and expensive fuels as stranded assets. A moratorium gives the county time to assess what regulations would protect the community.” Deep River Data initially expressed interest in applying to drill last year, but did not file an application. Then, in the beginning of February, 2026, Deep River Data emailed the NC Oil and Gas Commission. They asked questions to help them complete their application, and wrote, “We’re excited to be moving full steam ahead.” Therese Vick, sustainable development coordinator at Blue Ridge Environmental Defense League, shared this in response, “Lee County is being forced into a high-stakes experiment where the community bears all the risk, and the industry takes all the profit. To combine the massive power demands of an AI data center with the known dangers of fracking is to design a failure that Lee County will be paying for long after the data centers go dark.” Stephanie Stephens, the Deep River Riverkeeper, said, ““The Deep River is a direct drinking water source for 345,000 people and the source of Sanford’s drinking water. Approving a data center, powered by natural gas drilled from the Cumnock Shale basin underneath the Deep River threatens safe drinking water. We ask that the Commissioners pass a moratorium on Data Centers and Crypto-mining for Lee County so that permanent decisions made can be made with great consideration as to the best use of land space and for the well being of the community already living in the region.” Emily Sutton, Haw Riverkeeper and executive director at Haw River Assembly added, “North Carolina does not have permitting provisions and environmental regulations to ensure that data centers do not harm our communities or the air, water, and forests we depend on. We are asking counties to put moratoriums in place until our policy makers can adopt protective guardrails to regulate this industry.” ### About Blue Ridge Environmental Defense League (BREDL) BREDL advocates grassroots involvement to empower whole communities in environmental issues. BREDL functions as a “watchdog” of the environment, monitoring issues and holding government officials accountable for their actions. BREDL networks with citizen groups and agencies, collecting and disseminating accurate & timely information. BREDL sets standards for environmental quality & awards individuals & agencies who uphold these standards in practice. bredl.org About Clean Water for North Carolina Clean Water for North Carolina is a non-profit promoting clean, safe water and environments and empowered, just communities for all North Carolinians through outreach, advocacy, education, and technical assistance. cwfnc.org About Deep River Riverkeeper Deep River Riverkeeper’s mission is To protect the Deep River and it’s neighbors through science, education and stewardship. We do this through projects and programs that include public participation. We advocate for and work to ensure the Deep River’s well-being as a vital, healthy, life sustaining source for all. deepriverkeepersnc.org About Haw River Assembly Haw River Assembly is a 501(c)(3) non-profit citizens’ group founded in 1982 to restore and protect the Haw River and Jordan Lake, and to build a watershed community that shares this vision. Our goals are to promote environmental education, conservation and pollution prevention; to speak as a voice for the river in the public arena; and to put into peoples’ hands the tools and the knowledge they need to be effective guardians of the river. hawriver.org
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Global Ramifications, Local Impact – Microsoft’s AI Pollution Footprint
Read the Report! Global Ramifications, Local Impact – Microsoft’s AI Pollution FootprintOur friends at STAND have released a new report looking Microsoft's AI pollution footprint. Clean Water for North Carolina was glad to help out, by highlighting the impact that Microsoft has on the type of energy we use in North Carolina. Microsoft’s North American AI data center build-out is set to drive a massive 600% increase in the company’s energy demand. What will that mean for states like North Carolina? Microsoft's hunger for electricity is being used as a justification to build expensive methane gas power plants and pipelines. Check out the North Carolina case study in this report to learn how. Read the Report! Key findings 1. In North America, electricity demand from Microsoft data centers is expected to increase over 600% from 2024 levels by 2030. That’s enough to power nearly 10 million U.S. households for a year – or almost the entire electricity consumption of the entire New England region. If this demand is met by fossil fuels, both local and climate pollution will skyrocket. 2. In the U.S., most states where Microsoft data centers are located rely on grid electricity that is ≥50% fossil fuel generated. Microsoft’s investment into PPAs is laudable, but many projects are located in areas far away from its data centers and these projects do not exclusively provide renewable energy. This indicates, despite claims of matching 100% of its electricity demand with renewable purchases by 2025, the data centers themselves are still dependent on fossil fuels. 3. Microsoft’s data center emissions (scope 1 and 2) reached over 7.87 million metric tons CO2e globally in FY23 – equivalent to more than the annual climate pollution generated by the state of Vermont. This report finds that 95.68% of Microsoft’s global operational emissions in FY23 were from data centers, which drives the company’s rising climate pollution. The company’s total greenhouse gas (GHG) emissions (Scope 1, 2, and 3) increased by 55.38% between FY2013 and FY24 showing an ongoing upward trend.14 4. Obfuscated colocation data means the total impacts of Microsoft’s data centers are likely even higher than reported or projected. Like many big tech companies, Microsoft outsources much of its data center needs to third-party, colocation facilities. As of June 2024, Microsoft had the largest share of pre-leased capacity in colocation data centers – more than the other four major hyperscalers combined.15 By not clearly disclosing the energy consumed and emissions generated by its outsourced data services, Microsoft is not revealing the full extent of its climate and local pollution impacts. 5. Increased demand for energy leads to new fossil fuel facilities being built or existing ones staying online longer. Often this can occur in communities already suffering from high amounts of pollution, like the small community of Person County, North Carolina. The sheer scale of Microsoft’s AI data center buildout may have global implications for the climate, but it also comes with serious impacts for local communities. Additionally, these data centers contribute to higher electricity rates and raise concerns over water supply in the regions where they are clustered. The findings exemplify a clear connection between AI development and fossil fuel build out, a concerning lack of transparency into data center energy consumption and sourcing, and serious shortcomings in Microsoft’s community benefit practices. Take ActionTell Microsoft to act like a climate leader Microsoft has a history of being a climate leader, but the AI data center boom is throwing that all off track. Our new research1 shows that not only are most Microsoft data centers located in states with grid electricity that is ≥50% fossil fuel generated – but fossil fuel lobbyists are using new Microsoft data centers as evidence that we need to build out even more fossil fuel infrastructure. With Microsoft’s data center energy demand set to equal that of the entire New England region by 2030, the company has a choice – does it want to be a climate leader or does it want to fan the flames of the crisis? STAND is calling on Microsoft to ensure its new AI data centers are powered by local, 24/7, additional renewable energy, and provide substantial benefits for the surrounding community. Add your voice, sign the petition today! Sign the Petition!
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PRESS RELEASE: New Maps Show Transco & Other Proposed Pipelines’ Threat to Drinking Water in North Carolina and Virginia
CONTACT Stephanie Gans, Assistant Director, steph@cwfnc.org Kernersville, N.C. — On Wednesday, August 27, Clean Water for North Carolina released new, interactive maps highlighting drinking water sources threatened by three proposed methane gas pipelines in North Carolina and Virginia. Transcontinental Gas Pipe Line Company’s proposed Southeast Supply Enhancement Project (SSEP) Pipeline, crossing through densely populated areas in Guilford and Forsyth Counties, poses the greatest threat to NC drinking water of the three. These maps provide the public with valuable information ahead of public hearings on whether the state should approve SSEP’s 401 water quality certification application. North Carolinians and Virginians near any of the proposed routes can use the maps to identify if their drinking water source is at risk of contamination due to pipeline impacts. SSEP Pipeline is a proposed 42-inch diameter high-pressure, methane gas pipeline. It would cross multiple states, starting in Pittsylvania County, Virginia, and out to Coosa County, Alabama. 28.4 miles of new pipe are proposed for North Carolina in Rockingham, Guilford, Forsyth, and Davidson counties. It would require the expansion of two gas-fired compressor stations in Iredell and Davidson counties, which would produce air pollution. SSEP’s proposed route puts it close to existing Transco pipelines. In Rockingham County, the pipeline would follow closely along the proposed route for Mountain Valley Pipeline Southgate, crossing many of the same waterways, also magnifying the potential for impacts to groundwater. The proposal to install multiple high-pressure, large-diameter pipelines on similar routes has inspired vocal opposition at public hearings. Guilford County passed a resolution citing safety concerns in response. The town of Midway passed a resolution of opposition in May. Community members facing further land seizure by Transco for the SSEP, have expressed skepticism of their safety record and water pollution controls. “I have lived with the three despicable Transco pipelines running through my farm and community for over 60 years. Now, Transco wants to install a fourth pipeline referred to as SSEP.” said, Ron Ray, a resident of Guilford County, “Beaver Creek runs over the pipelines on my farm and has always been a potential source of contamination for water running into the creek, rivers, and waters on to the Atlantic Ocean. The SSEP construction will certainly cause damage to these waterways during construction and increase the risks of severe damage for generations to come. I plead that this project be not permitted for the sake of the health and safety of future generations.” Pollution from pipeline construction or leaks during operation can harm rivers, streams, public water supplies, and private wells all along the route. The pipelines are proposed near communities that have already suffered groundwater contamination from coal ash, in order to supply new gas turbines proposed by Duke Energy in Person and Catawba Counties. “We released these maps to empower residents with information that often stays buried in long permit applications. That way, we can act to protect our communities. Private well users within 1000ft of the proposed pipelines are at risk of contamination of their groundwater or even a decrease in water supply. These maps can help them identify if their wells are at risk.” said Steph Gans, Assistant Director of Clean Water for North Carolina, “Clean water is not the only thing on the line. These pipelines would supply new power plants adding to unhealthy air in communities. They will increase already high gas and electric bills. They threaten drinking water supplies, which could raise water bills. Using methane will worsen climate change, which caused damaging storms like Hurricane Helene and Tropical Storm Chantal. Both storms imposed huge costs on local water utilities and left North Carolinians without clean drinking water for days or weeks.” The maps show the threat to beloved local waterways across three watersheds: the Roanoke, Cape Fear, and Yadkin-Pee Dee. SSEP would cross the headwaters of the Haw River and the Dan River, which are sources of drinking water for NC communities. They show public water supplies from groundwater, some of which are perilously close to the SSEP pipeline’s route. “Projects like this create irreparable damage on our sensitive aquatic ecosystems and pose serious risks for downstream communities that depend on our rivers and streams for drinking water supplies.” said Emily Sutton, Haw Riverkeeper and Executive Director of Haw River Assembly, “These maps help us to demonstrate the unavoidable damage the SSEP project would cause if these permits are approved. This is the opportunity for our communities to show up and have their voices heard to oppose this unnecessary pipeline.” On Thursday, September 4 at 4:30pm, community members and grassroots organizations will hold: No SSEP! Rally to Protect Water in Harmon Park at 152 South Main Street, Kernersville, NC. The rally will take place before a public hearing on SSEP’s water quality certification application held by the NC Department of Environmental Quality. The hearing starts at 6 p.m. in the Kernersville Municipal Council Chambers, 134 East Mountain Street, Kernersville, NC. Private well users along the route welcomed the maps. “I’m glad this information will be available as I am definitely impacted by the proposed pipeline.” said Diana Garrison, a Guilford County resident, “I live in a neighborhood close to the pipeline, so all the homeowners’ wells are impacted by any leakage or seepage of toxins. Williams says they check to make sure their pipeline is safe, but we have yet to see anyone walking along pipeline in our area.” To view interactive maps of the SSEP, MVP Southgate, and T-15 pipeline routes visit cwfnc.org/nc-pipelines. The maps use data from a variety of public sources, including FracTracker Alliance, a non-profit organization educating the public about the risks from oil and gas projects. The maps show public water supplies, land within 1000ft of the proposed pipelines, the potential blast zone in the event of a pipeline accident, and drinking water sources at risk of pollution from all three pipelines. ### About Clean Water for North Carolina Clean Water for North Carolina is a non-profit promoting clean, safe water and environments and empowered, just communities for all North Carolinians through outreach, advocacy, education, and technical assistance. cwfnc.org About Haw River Assembly Haw River Assembly is a 501(c)(3) non-profit citizens’ group founded in 1982 to restore and protect the Haw River and Jordan Lake, and to build a watershed community that shares this vision. Our goals are to promote environmental education, conservation and pollution prevention; to speak as a voice for the river in the public arena; and to put into peoples’ hands the tools and the knowledge they need to be effective guardians of the river. hawriver.org Note: this press release was corrected to have the right month for Midway’s resolution opposing SSEP.
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Consumer Confidence Reports: Opportunities and Challenges for Small NC Water Systems
Read the Report! Where does my drinking water come from? Is my water safe to drink? How is my water being treated? If you've ever found yourself asking these common drinking water questions, you're not alone! Drinking water customers have the right to know what is in the water they are consuming and where this water comes from. This founding principle spurred the passage of the federal Consumer Confidence Report (CCR) rule in the 1996 amendment to the Safe Drinking Water Act (SDWA). Consumer Confidence Reports, or annual Water Quality Reports, provide consumers with an annual snapshot of the quality of their drinking water, while also providing important information on health risks, treatment methods and other educational materials. Overall, your utility's Annual Water Quality Reports are meant to help you make informed decisions about the water you drink! But what happens when your drinking water provider lacks the capacity or know-how to produce effective, meaningful water quality reports for their customers? Our new report seeks to explore the challenges and opportunities that small NC water systems face when publishing their annual Consumer Confidence Reports. Read the Report! With the Environmental Protection Agency (EPA) currently in the process of revising the CCR rules, we hope our findings provide a unique insight into not only how the NC Department of Environmental Quality (NC DEQ) can better assist small, struggling water systems, but how the new federal rules can also be accommodating to the tens of thousands of smaller drinking water providers across the nation. While our main focus is to provide recommendations to NC DEQ and EPA about helpful tools and resources that can assist small utilities with publishing effective CCRs, the general public may also find this report helpful in: ...understanding their rights as a drinking water customer under the federal SDWA ...how they can access their annual water quality reports ...how the EPA is working to ensure the new rules reflect a greater focus on equity and inclusion for the diverse populations of drinking water customers in the United States Our new report, "Consumer Confidence Reports: Challenges and Opportunities for Small NC Water Systems" is just one of many resources Clean Water for NC has published to help community members become better informed about the quality of their drinking water. Check out our resources list below for more tips and tricks to becoming an informed drinking water expert! YouTube Video: Understanding Your Drinking Water Utility's Consumer Confidence Report Fact Sheet: Annual Water Quality Reports Brochure: Types of Water Systems in North Carolina
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REPORT: “Advancing Well User Protections Through Policy”
Clean Water for NC is celebrating World Water Day this year with the release of our new report "Advancing Well User Protections Through Policy"! Read Our Report! This year's theme for International World Water Day 2022 is Groundwater: Making the Invisible Visible. Acknowledging the importance of groundwater and the services it provides to individuals across the globe is essential to developing protective well user protection policies, including policies for North Carolina's nearly 3 million private well users! With assistance from NC Well Water Working Group members, UNC's Superfund Research Program, NC Department of Environmental Quality (NC DEQ) and NC Department of Health and Human Service (NC DHHS) officials, we outlined the case for two well user protection proposals: 1. Increase Funding, Scope & Accessibility of the Bernard Allen Fund 2. Require Well Testing Prior to Real Estate Transactions We hope you find this report insightful and inspiring. Our team looks forward to continuing to develop these policy recommendations before introducing them to some "legislative champions" in Raleigh! Did you know that North Carolina has the second largest population of private well users in the U.S.? Not only that, but there are no federal protections for these individuals - it is complete up to private well users to ensure the safety of their drinking water. What can you do to advocate for well user protections in your own community? Reach out to your state representatives and urge them to support policies that promote safe drinking water protections for North Carolina well users Visit our Well User Protection page to learn more about your county's well program. (Your county's Environmental Health Director is your local resource for everything "wells" - they are there to assist you!) Connect with Clean Water for NC staff about any questions or concerns you have about your private well
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REPORT: “A Pandemic’s Impact – Utility Disconnections, Evictions & Houselessness”
Clean Water for NC has been involved in advocating for low-income North Carolinians against utility rate increases for years, and we saw new concerns emerge with COVID’s significant financial hardship for many families nationally and in North Carolina. Staff, along with volunteer Lee Barnes, explored the nuances and impacts of the pandemic on utility insecurity, eviction insecurity, and houselessness in the U.S., and specifically North Carolina, during COVID-19. Read the Report: "A Pandemic's Impact" The Utility and eviction moratoria are discussed in the context of race and class, especially considering access to utilities and reasonably priced rent before the pandemic as compared to during. The nature of utility shut-offs and why utility access is so important during a pandemic is covered in some detail, and there is discussion of private vs. public water utilities. We examine types of evictions and the legal nature of these evictions, along with the geographic patterns of evictions in the United States. The emotional, financial, and medical impacts of houselessness on Americans, especially during the pandemic, and especially during the climate crisis, are explored, as well as their racial context. We also include resources and highlight organizations providing assistance. Clean Water for NC aims to demonstrate our commitment to holistically considering the issues facing underserved communities. We hope state policies better protect BIPOC communities facing water disconnections, higher rates of eviction, and unhoused status. Read the Report: "A Pandemic's Impact"
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REPORT: “Bird’s-eye View – Impacts of NC Poultry Production on People and the Environment”
Poultry rules the roost in North Carolina. According to the U.S. Department of Agriculture, poultry farming is now North Carolina’s #1 agricultural commodity, and with that rise to the top comes a rise in the problems it brings to communities. Clean Water for NC’s report, Bird’s-eye View: Impacts of NC Poultry Production on People and the Environment, gathers research on the social, environmental, and health impacts of NC’s poultry industry. In North Carolina, the number of poultry farms has dramatically increased since the 1997 state moratorium on new hog farms. Poultry operations often house…
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