The proposed project involved a nearly 100,000-square-foot data center on a 14-acre site along Jones Sausage Road near Rock Quarry Road. The annexation request had been scheduled to appear on the Raleigh City Council agenda in two days.
The proposal generated significant opposition. The city said more than 130 people had signed up to speak about the project.
Some people who live nearby told ABC11 they were unaware a data center was planned next to their homes, while others voiced strong opposition.
Although the annexation item remained on the council agenda, city leaders confirmed the request had been withdrawn.
The property is partially owned by Charlotte-based Beacon Partners, which said it is not involved in the proposed project.
"Beacon Partners entered into a contract to sell the parcel back in November 2025 and is not involved in the prospective project in any capacity. We are aware that the purchaser withdrew their annexation application," the company said in a statement.
The withdrawal comes amid growing debate over data center development across the Triangle. Cities and counties in the region have been considering how to address concerns related to such projects, including Apex, where officials approved a 12-month moratorium on data centers.
"I mean, you have water consumption and environmental impacts and you have electric power, all those things and general infrastructure impacts. And we need to make sure that we have our rules in place under our UEO to address those concerns. And I have been very vocal about my thoughts about data centers based on what I know today," Apex Mayor Jacques Gilbert said.
"I don't think I've been convinced that they're the best for Apex. And as I quoted before, I'm not interested in a data center in Apex," Gilbert said.
Raleigh has not approved a broader moratorium on data centers and continues to evaluate proposals on a case-by-case basis.
Gilbert said regional cooperation may be necessary as communities consider future projects.
"And, you know, some of those things of what I've seen or heard or read about evolving data centers could be a problem in neighboring towns and cities if approved in another town. So we're watching. We're willing to work with other cities and towns to make sure that we get this right as a region," he said.
It is unclear whether a revised proposal could be submitted in the future. For now, the southeast Raleigh data center proposal has been withdrawn.
According to our newsgathering partners at The News & Observer, the proposal would have brought a data center to a site near residential neighborhoods in southeast Raleigh, prompting concerns from community members about the project's impact on the area. Council members had expressed skepticism about the proposal during recent discussions.
The withdrawal means the annexation request tied to the proposed development will no longer move forward.
The identity of the prospective purchaser behind the project was not immediately clear, and Raleigh officials have not indicated whether a revised proposal could be submitted in the future.
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