Project Overview

The Walnut Cove Data Center project, also known as ‘Project Delta’, is a data center facility proposed by Engineered Land Solutions. Located on the Dan River, the facility comprises up to eight buildings, each about 100,000 square feet and about one to two stories tall.

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The developer states that of a total of 1,800 acres, only 998 acres will be developed, and the remaining land is recognized as floodplain. Upon completion, the project is expected to create up to 250-500 on-site jobs and nearly 1,000 construction jobs.

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The facility is projected to generate USD 20 million in annual tax revenue for Stokes County and use up to 50,000–100,000 gallons of water daily via a closed-loop cooling system. Methane gas generators will be used until the grid connection is available.

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In January 2026, the Stokes County Board of Commissioners approved the rezoning for the data center facility. But in March 2026, community groups and Walnut Cove residents in Stokes County sued the county to block Project Delta, saying it would harm environmentally sensitive areas along the Dan River corridor and damage sacred cultural sites.

Walnut Cove Data Center Project Location

The Walnut Cove Data Center project is located on U.S. Highway 311 and Tuttle Road in Walnut Cove, Stokes County, North Carolina, USA. It is situated near the Belews Creek Coal Plant. This 1,800-acre site is near the Dan River, where it crosses US Highway 311.

Project Background

The plans for the proposed hyperscale data center project were announced in November 2025. The developer described it as a several-hundred-megawatt facility with a closed-loop cooling system and possible on-site generation.  

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In November 2025, Engineered Land Solutions (ELS) submitted the rezoning application of the 1,800 acres from agricultural/farm use to heavy industrial/commercial to allow data‑center construction.

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Then, on 12 January 2026, the Stokes County Board of Commissioners approved the rezoning by a 3-2 vote, ignoring strong public opposition. The groundbreaking is expected to start in early 2027, with full completion expected by 2030-2032.

Walnut Cove Data Center Project Developers

Project Delta is being developed by a Charlotte‑based developer, Engineered Land Solutions (ELS). The underlying land is owned by local developer David Couch, CEO of Blue Ridge Companies.

Rezoning for Data Center Facility Approved

On 12 January 2026, the Stokes County Board of Commissioners approved the rezoning for the data center facility in a 3-2 vote. But Drew Nations, the CEO of ELS, said that of the total 1,800 acres, only 998 would be developed, with the remaining land designated as floodplains.

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The commissioners who voted in favour said that Stokes County is in great need of tax revenue, and that approval of the data center facility is expected to generate approximately USD 20 million in tax revenue for local governments in a year.

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Along with Commissioners Brad Chandler and Wayne Barneycastle, many residents opposed the rezoning approval. They raised concerns about the land's history, its environmental impacts, and the consumption of natural resources, such as water and electricity.

Nations said that the historical land is located within the property's floodplain and will not be disturbed throughout its development process. The development is restricted to upland areas; therefore, it won’t affect the Floodplain or the Dan River.

Walnut Cove Data Center Project Current Status

On 12 March 2026, Community Groups, along with Walnut Cove Residents, filed a lawsuit to protect the land endangered by the County Board's decision to permit the AI data center development.

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The suit was filed in the Stokes County Supreme Court by the Southern Coalition for Social Justice and the Southern Environmental Law Center. It raised questions on the County’s decision to rezone nearly 1,800 acres of residential-agricultural land on the Dan River for heavy industrial use.

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The opponents claimed that the county acted without the procedural safeguards, factual grounding, and reasoned decision-making required by North Carolina law. Commissioners failed to notice the zoning changes and their impacts on noise, air, and water quality.  

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In addition, the study didn't even examine the holy sites associated with Saura tribal history and the Hairston Plantation, where descendants of enslaved people still live and maintain cemeteries.

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The decision was made solely in view of the economic benefits it would bring to the local government.

Project Scope

The following are the project scopes of the Walnut Cove Data Center Project:

• Supports Cloud Computing: The hyperscale AI data center facility is designed to support AI computing infrastructure and cloud computing demands.
  

• Noise Level: The data center facility will have a maximum noise level of 70 dB(A). It is louder than a sound that comes from an open field in nature, which is nearly 30 dB (A).
  

• Development Size: It comprises 8 data center buildings, each measuring 100,000 square feet and 1–2 stories tall.
  

• Infrastructure development: The facility includes power upgrades, fiber optic connectivity, and supporting utilities.
  

• Power Strategy: Potential inclusion of on-site generation capacity (possibly using methane gas generators) with connection to the Duke Energy grid.

Project Timeline

Benefits

The following are the benefits of the project:

• Economic benefit: The facility is expected to generate approximately USD 20 million in annual tax revenue for its local government.
  

• Multiple Job Opportunities: The data center campus is expected to create 250-500 on-site jobs and 1,000 construction jobs.  
  

• Attracts Investment: The project positions Walnut Cove as a tech hub near Greensboro, attracting additional hyperscale investments and enhancing North Carolina's status as a data center corridor.
  

• Promotes energy resilience: By leveraging closed-loop cooling and on-site generation potential, the project enhances energy resilience and reduces operational carbon emissions.

Conclusion

The Walnut Cove Data Center Project, or Project Delta, is a hyperscale facility by Engineered Land Solutions near the Dan River. Of the proposed 1,800 acres, 998 will be developed, and the remainder is recognized as floodplain.

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It is poised to drive economic growth and technological advancements in Stokes County, North Carolina. The proximity to Duke Energy’s Belews Creek plant, which provides reliable power, makes the region a critical hub in North Carolina’s expanding data center ecosystem.

The rezoning approval in January 2026 by a 3-2 vote, despite opposition from residents and the county Planning Board, has led to legal challenges filed by community groups and residents in March 2026. Ultimately, the future of the Walnut Cove Data Center Project will depend on resolving these legal and community matters.

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