North Carolina House committee advances bill targeting data center impacts

The North Carolina House Energy Committee has advanced Senate Bill 730, known as the Ratepayer Protection Act, a significant piece of legislation targeting the regulation of data centers across the state. The bill seeks to establish statewide guidelines amidst growing local concerns about the strain data centers place on critical resources like electricity and water, with several communities already implementing temporary moratoriums.

Authored by Republicans like Rep. Matthew Winslow from Franklin County, proponents argue the legislation is crucial for protecting residents and small businesses from escalating electricity costs by requiring data centers to cover their own expenses and safeguard water resources. The bill mandates "closed-loop" water systems to minimize consumption and prevent environmental contamination, a provision supported by Rep. Pricey Harrison, a Democrat from Guilford County, who cited concerns from other states.

Further, the Ratepayer Protection Act includes national security provisions, banning data center ownership in North Carolina by governments or citizens of China, Russia, Iran, and North Korea. It also curtails local governments' ability to offer economic incentives or use eminent domain for data center projects. Rep. Ray Jeffers, a Democrat representing Person County, questioned this provision, noting his community's pursuit of a deal with Microsoft, which leverages existing Duke Energy infrastructure, and expressing concern about potential hindrances. The bill has now moved to the House Rules Committee for further deliberation.