Microsoft restarts $1B data center in Catawba County

By Mandy Zhao for HOODLINE

 

After roughly a 10-month pause, Microsoft’s 1 billion dollar data center build in Catawba County is back in gear. Crews have returned to four campuses spread across Conover, Hickory, Maiden and Newton, where local officials have spent months sorting through permits, incentive terms and a steady stream of neighborhood pushback. For many residents and municipal leaders, the restart finally ends the guessing game over whether the massive build would stay on schedule.

According to building permit records cited by the Charlotte Observer, commercial permits for the Catawba County sites were issued between November and December. Those filings list construction values that total about 909 million dollars, and the Observer reported that Microsoft had delayed the overall project for around 10 months before work began ramping up again.

Scott Millar, president of the Catawba County Economic Development Corporation, confirmed the permit activity and told the Charlotte Observer “there is little doubt Microsoft will achieve their investment requirements.” The incentive package that helped land the deal guarantees at least 1 billion dollars in investment over a 10-year performance window, according to the Catawba County EDC.

Microsoft’s Wider North Carolina Sweep

Catawba County is not the only North Carolina play on Microsoft’s board. In October 2024, the company bought roughly 1,350 acres in Person County for about 27 million dollars, where it is planning a separate data center campus. County officials say permitting for that project is set to begin this year.

In a public update, Person County reported that Microsoft has laid out commitments to keep water use in check, to replenish more water than it consumes and to “pay its own way” so the project does not push up local electricity prices, according to the county.

Power Needs Push Duke To Spend

On the utility side, Duke Energy is lining up resources to handle the wave of new demand. The company recently rolled out a 103 billion dollar, five-year capital plan that executives say is aimed in part at serving fast-growing data center loads.

Duke has already signed multiple electric service agreements that lock in future data center usage, a move that analysts say will heavily influence when and how projects like Microsoft’s Catawba campuses actually plug into the grid.

Local Tradeoffs And The Timeline Ahead

Closer to the ground, neighbors and community groups have kept up pressure over the local impacts. Residents have raised concerns about round-the-clock fan and generator noise, heavy water use for cooling and added strain on the power system, issues that have surfaced repeatedly in public meetings and local coverage.

The economic development deal that drew Microsoft to Catawba County includes performance-based tax grants paid out over 10 years, with two optional five-year extensions if the company expands, according to the Catawba County EDC. Local reporting at the time of the 2022 announcement also captured vocal resistance from some residents.

What To Watch Next

From here, the real timeline will depend on a few key levers. Watch for new permit filings, water and environmental approvals and Duke Energy’s construction schedule, since the order and speed of those steps will dictate how fast these sites move from dirt work to racks of humming servers.

We asked Microsoft for comment and will update this story if the company responds.

 

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