North Carolina lawmakers target data center growth
North Carolina lawmakers are fast-tracking the "Ratepayer Protection Act" (Senate Bill 730) to regulate data centers, mandating noise studies, closed-loop water cooling systems, and requiring existing power plants to be replaced by nuclear resources before retirement. The bill has passed two House committees and is expected on the House floor. Industry groups have expressed concerns about the specific mandates.
North Carolina House lawmakers are rapidly advancing Senate Bill 730, now titled the “Ratepayer Protection Act,” which seeks to impose new restrictions on data center development and mandate a shift towards nuclear power within the state's energy grid. Introduced by Reps. Matthew Winslow (R-Franklin) and Dean Arp (R-Union), the bill passed two House committees and is poised for a vote on the House floor.
The proposed legislation would require large data centers to conduct noise studies, implement closed-loop water cooling systems, and allow local governments to assess environmental impacts, including water, air quality, agricultural resources, and thermal plumes. Additionally, it stipulates that existing baseload power plants cannot be retired until they are replaced by nuclear resources, a provision intended to enhance grid reliability following past power outages.
Winslow stated the bill aims to protect North Carolinians from rising electricity bills driven by data center growth, emphasizing the need for data centers to contribute to grid strength. However, the bill faces criticism from various stakeholders. Rep. Brandon Lofton (D-Mecklenburg) questioned the exclusive focus on nuclear power, suggesting it could delay energy transition. Kathy Martin from Democracy Out Loud also objected to the nuclear requirement, arguing against legislative dictates on power sources. Khara Boender, state policy director for the Data Center Coalition—representing companies like Google, Amazon, and Microsoft—expressed concerns about mandates on specific cooling technologies, utility service contracts, and potential impacts on North Carolina’s economic competitiveness.