NC lawmakers push forward data center regulations, changes to energy policy
North Carolina lawmakers have introduced Senate Bill 730, the Ratepayer Protection Act, to regulate data center development and address energy affordability. The bill targets zoning, water use, tax incentives, foreign ownership, and includes provisions related to energy costs and environmental permitting. It is the first such bill to advance in a statehouse committee.
North Carolina lawmakers have advanced Senate Bill 730, known as the Ratepayer Protection Act, through the House Energy and Public Utilities Committee. The legislation aims to mitigate the impact of rapid data center development on local communities and energy costs, marking the first time such a bill has progressed in the state legislature.
Sponsored by Rep. Dean Arp (R-Union) and Rep. Matthew Winslow (R-Franklin), the bill proposes several regulations for data centers with an electric demand of 100MW or more. These include restrictions on zoning, water use, and a ban on economic development incentives or the use of eminent domain for data center projects. It also prohibits foreign governments or citizens from China, Iran, North Korea, and Russia from owning data centers or related land.
Beyond data center-specific rules, the bill addresses broader energy policy, mandating an independent study on data center development's contribution to rising energy costs and the state's carbon neutrality goal by 2050. It also requires the Department of Environmental Quality to streamline permit reviews for energy projects and prevents the North Carolina Utilities Commission from authorizing coal plant retirements until new nuclear development reaches a regulatory threshold. The bill is expected to undergo further technical changes.