North Carolina Faces Rising Power Bills as Data Centers Drive 80 Percent of Energy Demand Growth
Data centers are projected to drive 80% of North Carolina's electricity demand growth by 2030, leading to proposed utility rate hikes by Duke Energy and statewide opposition from residents and advocates. A specific Amazon AI and cloud-computing campus in Richmond County, requiring numerous diesel generators, is a focal point of environmental concerns and protests. The state's Attorney General has challenged Duke Energy's proposed rate settlement.
Data centers are projected to consume 80% of North Carolina's new electricity demand by 2030 within Duke Energy's service area, according to a North Carolina Health News report. This significant energy use is prompting a proposed 15-17% rate hike for North Carolina customers by Duke Energy, which has sparked statewide pushback. Nurses and environmental advocates protested outside the General Assembly in Raleigh against the North Carolina AI Leadership Council's strategic roadmap, highlighting Duke Energy's tax breaks on its owned data centers.
Attorney General Jeff Jackson has challenged Duke Energy's proposed rate settlement with the state, arguing the utility understated the residential rate increase, claiming a 9.3% rise instead of Duke's stated 6.8%.
Further fueling controversy, Amazon plans a $10 billion AI and cloud-computing campus in Richmond County. This project, which promises 500 jobs, necessitates 645 diesel-fired generators for backup and temporary power. Richmond County residents, including Shaun Ingram, protested outside the Old Richmond County Courthouse in Rockingham, raising concerns about air permits, emissions, noise, water demand, and risks to already overburdened communities. The N.C. Department of Environmental Quality held a public hearing regarding Amazon and Duke Energy's air-permit applications. Jasmine Crockett, a staff attorney for the Southern Environmental Law Center, emphasized the disproportionate impact of pollutants on vulnerable populations in the area, including children, the elderly, and those with disabilities. A Duke University study suggests that large electricity users could help delay the need for new power infrastructure by curtailing demand during peak hours.