Business climate, broadband, and innovation reshaping NC’s economy

North Carolina’s Growth Engine

Business Climate, Broadband, and Innovation Continue to Reshape North Carolina’s 2026 Economy

North Carolina in 2026 is navigating a complex landscape marked by escalating climate challenges, significant infrastructure investments, and a bold push toward technological innovation. As the state confronts increasingly severe weather events, it is simultaneously leveraging digital resilience and sustainable energy strategies to foster economic growth, social equity, and environmental stewardship. The interplay of these forces is shaping a transformative era for the Tar Heel State.

Recent Impacts: Climate-Driven Weather Extremes Test Resilience

The first months of 2026 have vividly underscored North Carolina’s vulnerability to climate-induced weather anomalies, prompting urgent responses across sectors.

Notable Weather Events and Consequences

Intense Mountain Snow and Cold Fronts:
Early January's cold front brought record-low temperatures and heavy snowfall in the Appalachian regions. These conditions strained energy systems, highlighting the need for winterization and enhanced energy storage solutions to prevent outages during extreme cold spells.
Ice Storms and Power Disruptions:
Late January's ice storms across the Piedmont and mountain areas caused widespread outages. Duke Energy's deployment of smart grid systems, incorporating fault detection, automated rerouting, and rapid restoration capabilities, proved crucial in limiting outage durations. These upgrades are vital as climate variability increases storm severity and unpredictability.
Coastal Storms and Flooding:
The Outer Banks experienced significant storm surges, with winds gusting up to 45 mph, leading to coastal erosion, property damage, and evacuations. In response, the state accelerated coastal defense projects—including seawalls, dune restorations, and wetland conservation—aimed at protecting both communities and vital industries like tourism and fisheries.
Unprecedented Cold and Gusty Winds:
February brought temperatures plunging below freezing and wind gusts exceeding 60 mph in areas like Currituck, further stressing the power grid and prompting renewed safety measures.

Local Incidents Highlighting Vulnerabilities

Wilmington Train Derailment:
A derailment involving two train cars temporarily blocked downtown Wilmington, disrupting commerce and transportation. This incident underscores the urgent need for upgraded rail infrastructure and emergency preparedness, especially as climate variability heightens the risk of weather-related accidents.
Persistent Power Outages:
As of mid-February, approximately 2,511 homes and businesses remained without power due to storm impacts. These outages reveal vulnerabilities in the energy network, fueling investments in distributed energy systems and microgrids designed to enhance resilience.

Strategic Responses: Building Resilience Through Innovation and Policy

North Carolina has responded proactively through a range of investments and policies targeting infrastructure upgrades, clean energy adoption, and community protection.

Energy Infrastructure: Transitioning Toward Reliability

Smart Grids and Microgrids Expansion:
Duke Energy continues expanding its smart grid infrastructure, enabling fault detection, automatic rerouting, and faster outage recovery. Simultaneously, renewable microgrids integrating solar panels and battery storage are increasingly deployed in rural and underserved areas, ensuring reliable power during emergencies and reducing reliance on fossil fuels.
Siemens’ $421 Million Investment:
Siemens Energy announced a major expansion across Charlotte and Raleigh, creating 500 new jobs and boosting clean energy manufacturing—a move reinforcing North Carolina’s emerging status as a low-carbon energy hub. These facilities support wind, solar, and nuclear projects aligned with state climate goals.
Debates Over Nuclear and Natural Gas:
The North Carolina General Assembly is actively considering nuclear reactor expansions to complement renewable efforts, emphasizing their role as reliable, low-carbon energy sources. Conversely, discussions over natural gas plants continue, with environmental advocates raising concerns about emissions and water use. Meanwhile, programs like Energy Saver NC assist residents in managing rising energy costs amidst inflation and increased demand due to climate impacts.

Transportation and Coastal Defense Measures

The Department of Transportation (DOT) has bolstered winter storm preparedness through salt stockpiling, upgraded snow removal equipment, and rapid response training. These measures aim to maintain transportation continuity during climate emergencies, supporting economic resilience.

Coastal Ecosystems and Marine Management

Flood Defenses and Habitat Restoration:
Efforts include seawalls, dune restorations, and wetland enhancements designed to shield communities from surge events and erosion.
Fisheries and Marine Conservation:
The Marine Fisheries Commission’s proposal to establish a five-fish recreational bag limit for Atlantic Bonito illustrates adaptive management amid shifting marine ecosystems. Additionally, wetland restoration projects bolster natural flood mitigation and biodiversity.
Marine Ecological Monitoring:
The recent discovery of a “highly vulnerable” whale carcass off the Outer Banks has intensified marine conservation efforts and ecological monitoring to address climate-related stresses on marine biodiversity.

Broadband and Digital Resilience: Ensuring Connectivity in Crisis

Recognizing that communication infrastructure is vital during climate emergencies, North Carolina has made substantial investments in broadband expansion and digital security.

$300 Million NTIA Federal Grant:
This funding aims to connect over 20,110 rural households and businesses by 2026, promoting digital equity and enhancing public safety communications during outages.
Private Sector Fiber Expansion:
Major providers such as Charter Communications and Spectrum are extending fiber networks into underserved areas, helping close the digital divide critical for remote work, telehealth, and business continuity.
Satellite Redundancy and Cybersecurity:
Services like Starlink have proven essential during storms, maintaining emergency communications when terrestrial networks falter. Wilmington has also ramped up cybersecurity assessments of critical infrastructure following recent cyberattacks that temporarily disrupted services, aiming to fortify digital defenses against evolving threats.

Community and Equity: Inclusive Resilience and Local Initiatives

Wilmington’s Community-Led Resilience

Wilmington exemplifies community-driven resilience initiatives, engaging residents in housing adaptations, public safety planning, and equity-focused recovery efforts. The Warming Shelter ILM and other community organizations provide temporary warmth and dignity during cold snaps, such as Donna Gregory’s Extraordinary People mission, which emphasizes dignity and community support amid winter challenges.

Local Controversies and Economic Concerns

Biogas and Hog Waste:
Residents near Align RNG have raised concerns over methane emissions, wastewater runoff, and public health risks associated with biogas projects derived from hog waste. These debates highlight the importance of community engagement and regulatory safeguards in renewable energy development.
Rising Energy Costs and Data Center Growth:
The proliferation of data centers, while supporting economic growth, has contributed to increased energy demand and costs. Meech Carter from the NC League of Conservation Voters has criticized the disconnect between state policies and the need for sustainable energy solutions, emphasizing the importance of aligning economic incentives with climate goals.

Legal and Policy Developments: Navigating Uncertainty

Legal Challenges:
Recent legal actions, such as the Carrboro climate complaint filed against Duke Energy, have faced judicial setbacks. A judge recently ruled that courtrooms are no place for climate disputes, signaling ongoing tensions between local governments striving for climate accountability and utility companies resistant to regulation.
Policy Uncertainties:
Federal and state policy shifts—particularly regarding EPA’s climate safeguards and FEMA’s disaster funding—pose challenges for long-term planning. Critics warn that rollback efforts could undermine pollution controls and exacerbate disparities, especially among vulnerable populations.

Ecosystems and Conservation: Protecting Natural Resources

Efforts to enhance coastal defenses, wetland restorations, and fishery management are central to resilience. The vulnerable whale carcass off the Outer Banks underscores ongoing ecological stresses, emphasizing the need for comprehensive marine monitoring and species protection policies.

Invasive Species and Climate Change

Invasive species like hydrilla and emerald ash borers continue to threaten native ecosystems, facilitated by rising temperatures and habitat alterations. These challenges demand public awareness campaigns, biological management, and collaborative conservation strategies.

Outlook: Navigating the Decade Ahead

Despite substantial progress, North Carolina faces persistent vulnerabilities. The approximately 2,511 homes and businesses still without power as storm systems loom remind us of the need for continued investments in resilient infrastructure, clean energy, and equitable community planning.

Federal policies remain pivotal; uncertainties surrounding EPA regulations and disaster assistance programs could influence the state’s capacity to implement long-term resilience strategies. As climate impacts intensify, North Carolina’s success hinges on integrating technological innovation, community engagement, and sustainable policies.

In sum, the state is actively forging a path toward a more resilient, innovative, and equitable future. The convergence of infrastructure upgrades, digital resilience, and community-led initiatives positions North Carolina to meet the challenges of climate change head-on—building an economy that is not only resilient but also sustainable and inclusive for generations to come.

Sources (22)