Developer Scraps Major 250MW Data Center Project in North Carolina Amid Local Opposition
March 6, 2026
A significant data center development planned for North Carolina has been canceled following substantial community pushback, highlighting the growing tensions between rapid digital infrastructure expansion and local community concerns over land use and quality of life.
Natelli Investments LLC formally withdrew its proposal to build a 250-megawatt data center campus in the town of Apex. The project, named the ‘New Hill Digital Campus,’ was slated for an 89-acre site near the Shearon Harris Nuclear Plant and involved plans for four buildings totaling 800,000 square feet. The developer had projected the complex would generate 5,800 construction jobs and approximately $20.7 million in tax revenue for various government levels.
The decision to withdraw the application, confirmed on Thursday, came after sustained opposition from residents and local officials. In a statement on his Substack, Apex Mayor Pro Tempore Terry Mahaffey announced the withdrawal and revealed his next step. “And now that Apex has no active data center applications, at the next meeting on March 10th, I’ll be putting forward a motion to set a one-year moratorium on any further applications, permits, or construction of data centers in Apex,” Mahaffey stated. He explained that the pause would allow the town to “update the [Unified Development Ordinance], to put firm rules in place to ensure that any future applicants [do] not harm the health, the well-being, or the quality of life of any existing Apex resident.”
In response to the town's position, Natelli Investments indicated to WRAL News that it would reconsider its approach only “if in the future, the town of Apex ultimately approves a comprehensive zoning text amendment allowing data centers as an approved use within the town's limits.” The sentiment was welcomed by local activist groups, including members of the ‘Protect Wake County Coalition’ on Facebook, who expressed broad support for the proposed moratorium.
The cancellation of this major project underscores a broader pattern of local resistance to large-scale data center developments, even in regions actively courting tech investment. While North Carolina has emerged as a key data center market, with clusters around Charlotte and Raleigh, this case illustrates that local approval is no longer a foregone conclusion. Communities are increasingly weighing the promised economic benefits against potential impacts on infrastructure, the environment, and community character, potentially influencing future site selection strategies for developers across the industry.
Source: datacenterdynamics
