Bill proposes data center regulations, ratepayer safeguards
North Carolina House lawmakers have introduced a new proposal, the "Ratepayer Protection Act," to impose regulations on large data centers. The bill aims to protect residents from higher utility costs, safeguard water resources, and ensure energy reliability. Key provisions include requirements for noise, water, and environmental impact assessments, limits on cooling systems, and infrastructure cost coverage by data centers.
North Carolina state lawmakers have introduced new regulations aimed at large data centers operating within the state, proposing new limits and ratepayer protections to shield residents and businesses from escalating utility costs.
State Representatives Matthew Winslow (R-Franklin), Dean Arp (R-Union), and Kyle Hall (R-Forsyth) announced the proposed House committee substitute to Senate Bill 730, re-titling it the "Ratepayer Protection Act." Rep. Winslow stated the bill seeks to balance economic opportunity with protecting ratepayers, water supplies, and energy reliability.
The proposed legislation would mandate noise-impact assessments, local review of water and environmental impacts, and restrictions on cooling systems for large data centers. Additionally, it would prevent ownership by entities tied to foreign adversaries and require data centers to cover their added infrastructure and energy costs, a measure intended to prevent these expenses from being passed on to residential and retail electric customers. The initiative arises from increasing concerns over data centers' energy demands, particularly from artificial intelligence operations, with polling showing significant voter support for data centers generating their own power.
Jon Sanders, Director of the John Locke Foundation’s Center for Food, Power, and Life, supported the idea of data centers covering their own energy costs to prevent the burden from falling on other utility customers. The proposal also includes provisions to prevent the premature retirement of major power plants without adequate replacement resources, addressing a perceived flaw in the state's Carbon Plan law concerning reliable power sources.