Environmental and clean energy advocates largely oppose new data center and coal plant bill

North Carolina House Republicans, along with a few Democrats, advanced a bill that aims to establish new regulations for data center development while simultaneously imposing restrictions on Duke Energy's plans to retire its coal and gas-fired power plants. The proposed legislation includes a ban on water-intensive cooling systems for new data centers.

Environmental and clean energy groups, including the Natural Resources Defense Council (NRDC), CleanAIRE NC, and the Environmental Defense Fund, have largely voiced strong opposition to the bill. While some, like Drew Ball of NRDC, acknowledged the initial step toward regulating data centers, they criticized the bill for constraining Duke Energy's transition away from fossil fuels, particularly by requiring the utility to start construction on a new nuclear plant before retiring existing coal or gas facilities. Critics argue this approach would limit new energy development to more expensive forms like coal and nuclear power, ultimately burdening ratepayers with higher energy bills for decades and hindering the state's carbon neutrality goals.

Andrew Whelan, communications director for CleanAIRE NC, warned that the bill, specifically Senate Bill 730, would force a slow and costly transition, leading to increased energy costs for consumers. Will Scott, NC policy director for the Environmental Defense Fund, suggested that the General Assembly is overstepping its bounds by interfering with utility commission proceedings. Jim Warren, executive director of NC WARN, labeled the bill as "pro-coal, pro-nuclear and pro-Duke Energy," citing the corporation's history of failed nuclear projects.

The bill has now returned to the Senate for an additional vote.