'Getting squeezed': NC lawmakers look to stop data centers from raising energy, water costs
North Carolina lawmakers are advancing a proposed bill that would require large data centers to cover their electricity and infrastructure costs, and implement stricter rules on water use, ownership, and siting. The legislation aims to reduce rising power bills for state residents and address environmental concerns. This bipartisan effort reflects growing public and local government opposition to data center development.
North Carolina lawmakers are advancing a bipartisan bill, a rewritten version of Senate Bill 730, to establish a regulatory framework for hyperscale data centers that consume 100 megawatts or more of electricity. The proposed legislation aims to mandate that these data centers cover the incremental costs associated with their electricity and infrastructure needs, including new generation and grid upgrades. This measure is intended to prevent residential and small business customers from subsidizing large industrial users, addressing concerns about rising energy costs for state ratepayers amid surging power demand driven by artificial intelligence and cloud computing facilities.
The bill, supported by lawmakers like Rep. Dean Arp (R-Union) and Rep. Pricey Harrison (D-Guilford), also includes provisions to tighten rules on data center siting, ownership, and water usage. It would prohibit cities and counties from offering economic development incentives and from using eminent domain for data center projects. Concerns about water conservation, polluted discharges, and the environmental impact are central to the proposal. Additionally, the legislation would require utilities, such as Duke Energy, to file data center contracts with state regulators and report projected versus actual electricity demand, enhancing transparency. This legislative push occurs as data center developers increasingly face hostility and rejections from municipal boards, reflecting broad public opposition across North Carolina, where an April poll indicated 44% of residents oppose data center construction in their communities.