NC bill would require data centers to pay for grid upgrades
North Carolina lawmakers advanced Senate Bill 730, the Ratepayer Protection Act, which would mandate data center developers pay for grid upgrades and use water-efficient cooling systems. While environmental advocates support some provisions, they also raise concerns about water oversight and the bill's potential impact on coal plant retirement. The bill has passed its second reading in the House and returns to the Senate for further consideration.
North Carolina's House of Representatives advanced Senate Bill 730, known as the Ratepayer Protection Act, through its second reading with a 69-44 vote on Wednesday. The legislation aims to impose new requirements on future data center developments across the state, specifically mandating that developers bear the costs for necessary grid expansions, transmission upgrades, and new power generation infrastructure. Additionally, the bill calls for the implementation of water-efficient cooling systems, such as closed-loop technology, to mitigate the strain on local water resources, given that data centers can consume millions of gallons daily.
Rep. Matthew Winslow, who co-chairs the House Energy and Public Utilities committee, championed the bill, asserting it would prevent rising energy demands from data centers from increasing power bills for North Carolina residents and businesses. He emphasized the state's commitment to energy reliability, community protection, and affordability.
However, the bill has drawn mixed reactions from advocacy groups. While environmentalists like Anita Moore of the Haw River Assembly appreciate the water conservation measures, they advocate for stronger oversight regarding data center water withdrawals and the disposal of chemically altered wastewater, citing the state's current lack of a comprehensive water permitting system. Clean-energy advocates, including Will Scott of the Environmental Defense Fund, expressed concerns that certain provisions within SB 730 could inadvertently prolong the operational life of polluting and expensive coal-fired power plants, potentially driving up overall power generation costs instead of limiting them.
The bill now proceeds to the Senate for further review, as communities within the Triangle region have recently initiated pauses on new data center developments to re-evaluate local policies amidst the industry's expanding interest.