North Carolina House Alters Zoning Reform Bill, Passes New Data Center Regulations
The North Carolina House unexpectedly gutted a bipartisan "down-zoning" reform bill, which aimed to restore local governments' power to regulate property uses and simplify data center regulations, replacing it with a "Wake Surfing Safely" bill. Concurrently, the House passed the "Ratepayer Protection Act," enacting extensive new data center regulations including bans on evaporative cooling and local incentives, while also addressing long-term power generation. Although the original zoning reform bill was altered, lawmakers indicated the issue is still being pursued through other legislative avenues.
The North Carolina House significantly altered a bipartisan down-zoning reform bill, Senate Bill 587, by replacing its contents with legislation regarding "Wake Surfing Safely." The original bill, widely supported by local governments and intended to restore their power to regulate property uses and simplify data center regulations, had previously passed the state Senate unanimously. Representative Tracy Clark (D-Guilford County), a supporter of the original bill, expressed surprise at the sudden change, stating she did not see the Proposed Committee Substitute (PCS) ahead of time. House Republicans explained the "Wake Surfing Safely" bill was favored by a late colleague.
The down-zoning reform is not necessarily dead, as it may be reintroduced via another PCS or through the state budget, according to Representative Clark and Representative John Bell (R-Wayne), who assured Clark it was "moving elsewhere." However, Senator Benton Sawrey (R-Johnston), a primary sponsor of the original down-zoning bill, stated he was not consulted before the bill was amended.
Separately, the N.C. House passed extensive data center regulations as part of the "Ratepayer Protection Act," which bans evaporative cooling, prohibits adversarial foreign ownership, and prevents local incentives for hyperscale facilities. While these data center provisions garnered bipartisan agreement, most Democrats ultimately voted against the overall bill due to a provision concerning long-term power generation, which prohibits retiring coal and natural gas plants until a larger nuclear site is approved.
The article also mentions former Congressman Jeff Jackson's recommendation for regulators to create a separate rate class for data centers, citing high proposed energy rate increases for families. Duke Energy responded by stating they are reviewing testimony and evaluating opportunities to refine their rate request, acknowledging customers are facing higher bills.