Proposed NC bill targets data center power and costs

News Clip2:09WRAL·NC·5/1/2026

North Carolina lawmakers are proposing a new bill to address growing concerns about data centers' energy and water use. The bill would require large data centers to generate 25% of their power on-site using clean energy and cover more infrastructure costs. Experts warn this could deter future data center investments in the state.

electricitygovernmentenvironmental
Gov: North Carolina Legislature, North Carolina House Democrats
A proposed North Carolina bill aims to address the rapidly expanding data center industry's impact on energy consumption and utility costs. The legislation, introduced by House Democrats, would mandate that large data centers generate 25% of their own power using clean energy and take on a greater share of the costs associated with supporting new electricity infrastructure. Data centers, which can consume as much electricity as small cities, are driving a sharp increase in demand across North Carolina. Utilities warn that meeting this demand could necessitate building new power plants, with costs potentially passed on to all customers. Lawmakers argue the state has a responsibility to protect citizens from these rising costs and environmental impacts. Harrison Fel, an energy markets expert at NC State, noted the economic trade-off. He suggested that if the bill passes, many proposed data centers might withdraw their applications due to significantly increased operating costs. The bill is in its early stages and faces a long legislative process, as lawmakers weigh the economic benefits of data center investments against protecting rate payers and the environment.