NC House passes bill to crack down on data centers, fast-track nuclear power
The North Carolina House of Representatives passed a bill introducing new restrictions on data centers, addressing concerns over energy and water consumption, noise, and rising utility bills. The legislation aims to make data centers pay their fair share and prevent local governments from offering incentives. It also includes controversial provisions to fast-track nuclear power plant construction.
The North Carolina House of Representatives has advanced Senate Bill 730, a comprehensive proposal aimed at regulating the state's burgeoning data center industry. The bill, which passed a House vote on Wednesday, seeks to impose new restrictions on data centers, primarily addressing concerns over their significant energy and water consumption, noise pollution, and potential impact on utility bills for residents. Key provisions include banning local government incentives for data centers and mandating greater attention to noise.
Proponents, such as Rep. Matthew Winslow (R-Franklin), argue the bill prioritizes "families and small businesses" by ensuring data centers "pay their fair share" and enhancing grid reliability amid rapid growth. However, the bill has drawn criticism from both sides: a tech industry lobbying group, The Data Center Coalition, warned that the changes could harm North Carolina's competitiveness, while some members of the public and Rep. Maria Cervania (D-Wake) argued the measures don't go far enough, particularly regarding water recycling requirements.
The legislation also includes controversial provisions to fast-track Duke Energy's construction of new nuclear power plants, a move that sparked heated debate. House Democratic leader Rep. Robert Reives of Chatham County and Rep. Cervania expressed concerns that these energy provisions could ultimately raise power bills, citing costly and delayed nuclear projects in other states. Republicans, including Rep. Dean Arp (R-Union), countered that increasing power generation is crucial to prevent blackouts, referencing a 2022 Christmas Eve incident.
Separately, Attorney General Jeff Jackson is challenging Duke Energy's proposed 18% rate hike, suggesting different rates for data centers to reflect their grid strain. Democratic Gov. Josh Stein and State Senate leader Phil Berger (R-Rockingham) have also called for eliminating tax exemptions for data centers, though such provisions were not included in the current version of the bill after amendments were shot down by Republicans.