How AI Data Centers Are Transforming North Carolina's Rural Communities Amid Crypto Mining Shift

This coverage is made possible through a partnership between Grist and BPR, a public radio station serving western North Carolina.

In Murphy, North Carolina, a peaceful mountain town once defined by birdsong and swaying trees, a steady electric hum now cuts through the calm. Since a nearby cryptocurrency mine opened in 2021, the noise has intruded on the lives of Rebecca and Tom Lash.

“There was nothing in this little pasture but these electric lines,” Rebecca Lash said, as she and Tom stood on the hill overlooking the mine. “And it was just nice and quiet.”

The Lashes moved to Cherokee County eight years ago to enjoy their retirement with views of the Blue Ridge Mountains. Over the past five years, their frustration grew as three cryptocurrency mines opened near their home. Now, the landscape is changing again as one of those mines transitions into an artificial intelligence data center.

From Crypto Mines to AI Data Centers: A National Trend

Western North Carolina is experiencing a local reflection of a broader national trend. Across the U.S., communities that spent years resisting cryptocurrency mines are now facing a potentially larger wave of digital infrastructure supporting AI. As crypto mining profits decline, companies are repurposing their operations to meet the computing demands of the growing AI industry.

“The big AI centers and the big data centers, there’s some horror stories about people that live near those,” said Tom Lash.

Rising Backlash Over Energy and Water Consumption

This transition is sparking growing opposition. Residents and local officials in Cherokee County and beyond fear that these massive operations—consuming as much electricity and water as small towns—will fundamentally alter rural communities with minimal land-use restrictions.

Towns and counties across western North Carolina are responding by enacting moratoriums and exploring new regulations. Many say the industry arrived faster than local governments could fully grasp or regulate it.

Why North Carolina’s Rural Communities Are Prime Targets

The shift from crypto mines to AI data centers is possible because both rely on the same critical resources: vast amounts of electricity, industrial-scale cooling systems, and large buildings capable of housing thousands of servers running continuously.

Political and environmental factors in Cherokee County are further facilitating this transition, particularly in post-industrial towns seeking economic revival. In Marble, Core Scientific’s former cryptocurrency mining site—now slated to become an AI data center—once housed American Thread, a garment industry factory that closed in 2015, eliminating hundreds of jobs and tens of thousands in annual tax revenue.

The region’s abundant water supply, mild climate, and lack of zoning restrictions make it an appealing location for such facilities. In late 2023, Core Scientific announced plans to merge with CoreWeave, a company that leases computing power to AI firms. Though the merger fell through in October 2024, Core Scientific has stated it will continue converting facilities like the one in Marble to support AI workloads. The Marble facility alone consumes as much power as a medium-sized town.