Charlotte’s University area could see another data center expansion. What we know
A data center operator with a facility in Charlotte’s University Research Park may be looking to expand, depending on the properties zoning conditions.
H5 Data Centers submitted a zoning verification letter to the city of Charlotte Tuesday, looking for confirmation on whether two properties in the University area are zoned to allow for a telecommunications and data storage facility, according to city permit records.
Zoning verification letters are submitted to verify land usage and determine whether a developer would need to file a rezoning request. The letter was sent by the law office of Robinson and Bradshaw, which works on rezonings in the city.
The Charlotte region and North Carolina are becoming a hot spot for data centers.
But this rapid surge has created conflict, as many residents oppose data centers. They cite concerns about noise, water usage and the significant power needs of the centers, which often operate with limited public disclosure.
H5 Data Centers, which is based in Colorado, already owns the site of one data center, which is operated by Flexential at 10105 David Taylor Dr. in the research park.
H5 also owns three properties surrounding Flexential. Two of those properties are part of the zoning verification; one adjacent to Flexential along David Taylor and another along Governor Hunt Road. In that area of the university community of Charlotte, H5 owns 28 acres, which it bought in 2014 for a combined $19.5 million.
The property along Governor Hunt is behind the Aria at the Park Townhomes.
H5 did not immediately return a request for comment Wednesday. Robinson and Bradshaw declined to comment on the letter. But the verification letter indicates interest in building additional data centers in the area.
Flexential isn’t the only data center in the University area. American Real Estate Partners is leveling 122 acres at 10800 University City Blvd. that will be able to hold up to five two-story data center buildings with up to 1.5 million square feet.
One of the first buildings will be delivered in April 2027, according to American’s website. That area was rezoned for a data center in 2023.
Another rezoning is pending at 1102 Galloway Road to allow for 1.3 million square feet of data center usage.
Data centers in North Carolina
In its marketing, H5 describes Charlotte as being between two data center hubs Atlanta and Ashburn, Virginia. The operator goes on to say that Charlotte has access to long haul fiber routes and distribution paths along the East Coast.
Charlotte’s accessibility is one of the reasons businesses are drawn to the region.
It may also be why 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 an 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.
Another selling point from H5, is “low-cost and reliable power from Duke Energy.”
To address unprecedented demand and load on the power grid, fueled in large part by fast-growing use of AI, Duke Energy is undertaking a massive expansion. The company recently announced a record-breaking $103 billion, five-year capital plan through 2030.
