The town of Canton in North Carolina is set to hold a public hearing on February 11 to discuss banning cryptocurrency mining and data centers, following inquiries from tech companies about repurposing a shuttered paper mill. Local leaders, including Mayor Smathers, express concerns over environmental impacts outweighing potential economic gains. This move aligns with similar actions in nearby counties wary of resource strain.
The town board of Canton passed a resolution last month to convene a public hearing on February 11, prompted by multiple companies inquiring about using the former paper mill site. The mill closed in 2023, leading to over a thousand layoffs and a significant loss in tax revenue for the community.
Mayor Smathers has voiced apprehension that the drawbacks of data operations, such as high energy and water demands, surpass the benefits of added tax income. Most inquiries have been initial, focusing on the town's energy and water infrastructure. Data centers, which support AI, cloud computing, and everyday digital services, have proliferated amid the generative AI surge. However, they require substantial electricity and cooling water to manage server heat.
"Our job is to try to find ways to say ‘yes’ and bring businesses in. But we cannot and will not sacrifice our water and natural resources for the almighty dollar," Smathers told BPR. "Can there be a balance? Yes. But, this is not all about the money. This is about the people and being authentic to what Canton, what Haywood County is."
Canton joins a regional trend in western North Carolina. Counties including Clay, Haywood, Cherokee, Jackson, and Macon are examining moratoriums or ordinance changes to curb such developments. In 2023, Haywood County enacted a high-impact ordinance limiting water, land, and energy use for new industrial facilities, as full bans are not feasible without zoning. The town of Waynesville amended its land use rules that year to explicitly prohibit cryptocurrency mines and data centers within limits.
Waynesville Development Services Director Elizabeth Teague noted that noise was an initial worry, but research revealed wider environmental threats. "Everyone who lives here is extremely protective of their land, and the mountains, and the creeks, and the rivers, and the environment," Teague said. "The people that are wanting to place these centers here may think it's out of the way, but it's not to the people who live here."
Nationwide, data centers have raised alarms, from water contamination in Georgia to higher energy costs in Maryland.