NC House advances bill addressing data center development, mandating new nuclear plant
The N.C. House advanced an energy bill, Senate Bill 730, aimed at regulating large data center development in North Carolina. The legislation would mandate closed-loop cooling systems and noise studies for data centers, prevent local governments from offering incentives, and require data centers to cover all new infrastructure and energy costs. It also includes provisions for Duke Energy to obtain permission for a new nuclear plant before retiring fossil fuel plants.
The North Carolina House of Representatives swiftly passed an energy bill, Senate Bill 730, on Tuesday, introducing significant regulations for data center development across the state and outlining new requirements for Duke Energy's power generation. Representative Matthew Winslow, a Republican from Franklin County and one of the bill's authors, stated that "The Ratepayer Protection Act" aims to ensure data centers contribute their fair share and enhance grid reliability. The legislation is described as North Carolina's most extensive response to community concerns regarding large-scale data centers.
Key provisions of the bill include mandating that large data centers conduct noise impact analyses within 500 feet of their property lines and utilize closed-loop cooling systems to minimize water consumption. Furthermore, the bill prohibits local governments from offering economic development incentives, such as property tax breaks, to data centers. Industry officials, including Kara Bunder of the Data Center Coalition, expressed concerns that these measures, along with requirements for 15-year power purchase contracts for facilities using over 100 megawatts, could deter data center recruitment and shift infrastructure costs.
The bill also contains a crucial clause requiring Duke Energy to secure a certificate of public convenience and necessity for a nuclear plant with a minimum capacity of 1,000 megawatts before it can decommission existing coal or natural gas facilities. This provision, supported by Republican lawmakers like Representative Dean Arp of Union County, aims to prioritize baseload generation, affordability, and reliability amid state growth. Concerns were raised by Representative Brandon Lofton, a Democrat from Mecklenburg County, regarding potential delays to coal plant retirements given the lengthy construction time for nuclear facilities.
The updated language clarifies that Duke Energy needs permission for a single new nuclear facility, not a replacement for all retiring fossil fuel plants. Both the House Commerce Committee and House Rules Committee approved the bill, moving it to the House floor for a vote, after which it would proceed to the Senate for consideration.