Microsoft resumes work on $1B data center project near Charlotte after delays
After a 10-month delay, Microsoft has begun work on its $1 billion data center projects in Catawba County.
Several commercial building permits were issued to the tech giant between November and December for sites in Conover, Hickory, Maiden and Newton, according to Catawba County permit records. The permits were confirmed Thursday by Scott Millar, president of that Catawba County Economic Development Corp.
A wave of data centers are sweeping across the Carolinas, with the Charlotte region becoming a central hub, primarily driven by the explosion of the AI industry and need for hyperscale data centers. That growth, and the secrecy often behind early development plans, have led many area residents to oppose them.
Last April, Microsoft announced that it was delaying construction of the project in the county for an unspecified time. It’s unclear why thge delay occurred.
But the permits signal that the 10-year investment agreement between Microsoft and the county is moving forward.
Microsoft did not immediately respond to a request for comment Thursday from The Charlotte Observer.
Microsoft’s data center plans for Catawba County
In 2022, Microsoft announced that it would be investing $1 billion to building four data centers in Conover, Hickory, Maiden and Newton. Those communities are about 40 to 60 miles north of Charlotte.
The project would create at least 50 jobs and has to be completed in 10 years.
But last year, Microsoft either delayed or stopped several data center projects around the U.S. and internationally.
Microsoft didn’t say why the company was pulling back from its projects but news outlets reported there could be two major factors: Microsoft was assessing whether there was enough demand for all the data centers and general construction issues, such as building material or power supply.
It’s unclear what the issue was in Catawba County, but it isn’t an issue anymore.
Microsoft has until 2032 to fulfill its investment agreement. The four data centers will cost Microsoft a combined $909 million, according to the construction permits. And at that price, Millar said “there is little doubt Microsoft will achieve their investment requirements.”
Data centers in North Carolina
Tech giants such as Google and Amazon own Charlotte-region data centers. Other owners include Digital Realty and Segra, whose sites are built for a single user or as “colocation” sites with space leased to multiple businesses.
Texas-based Digital Realty plans to knock down a pair of century-old Charlotte office buildings and construct a four-story, 12 MW data center on East Trade Street covering nearly the entire block. It also intends to open what would be the region’s largest data center campus in west Charlotte at 400 megawatts and 3 million square feet.
Besides Catawba County, Microsoft is also planning a data center in Person County on 1,350 acres of land it purchased for $27 million in October 2024. Person County is about 50 miles north of Raleigh.
To address the unprecedented demand and load on the power grid, Duke Energy is undertaking a massive expansion, recently announcing a record-breaking $103 billion, five-year capital plan through 2030.
However, this rapid surge has created conflict, as many residents have opposed the data centers. They have cited concerns about noise, water usage, and the significant power needs of the centers, which often operate with limited public disclosure.
