NC Statehouse considers 5 bills to regulate data centers

North Carolina lawmakers are actively considering five distinct bills to regulate data center development statewide, addressing concerns over environmental impact, energy consumption, and financial burdens on ratepayers. Key proposals include SB 844, the Affordable Energy Omnibus, which mandates large load tariffs for data centers over 50 MW, requires environmental reviews, and allows local voter referendums for projects. HB 1063, the Ratepayer and Resource Protection Act, targets data centers above 40 MW, seeking to eliminate sales tax exemptions, impose higher utility rates, and require annual reports on electricity and water usage.

HB 1180, Data Center Amendments, focuses on facilities over 20MW, requiring the NC Utilities Commission to develop specific electric service tariffs to prevent residential cross-subsidization, including 10-year minimum contracts and financial assurance. The only bipartisan bill, HB 1189, the Data Center Transparency Act, proposes eliminating sales tax exemptions and establishing a two-year moratorium on data center permits. SB 730, the Ratepayer Protection Act, for data centers over 100MW, emphasizes preventing local environmental impact, conserving water through closed-loop systems, and preventing foreign ownership of data center land, while also requiring noise and air pollution assessments before zoning approval.

While sponsors emphasize the need for robust regulation, the Data Center Coalition, represented by Dan Diorio, Vice President of State Policy, expresses opposition to moratoriums and the complete removal of economic incentives. Diorio stated that developers are generally willing to collaborate on fair policies and cost allocation but cautioned against sending a signal that North Carolina is