NC lawmakers press for fast action on data center crackdown bill
North Carolina lawmakers are pushing for quick passage of a bill aimed at regulating data centers. The proposed legislation would require large data centers to cover their own electricity and infrastructure costs, mandate water recycling, and ban local incentives. It also seeks to tighten rules on data center location and ownership, while eliminating certain tax exemptions.
North Carolina lawmakers are poised for swift action on a comprehensive bill designed to regulate data center development across the state. The legislation, made public last month, is expected to advance quickly through the House of Representatives before moving to the state Senate. Proponents, including State Rep. Dean Arp, R-Union, argue the bill will help reduce electricity costs for ratepayers by requiring large data centers to bear the incremental costs of their high energy demand, including new generation and transmission infrastructure.
The proposed bill mandates that data centers cover associated electricity and infrastructure expenses, tightens regulations on site selection and ownership, and requires the implementation of closed-loop water recycling systems for cooling. Additionally, it prohibits local governments from offering incentives for data center construction and addresses tax loopholes for energy and building materials, which Governor Josh Stein and Senate leader Phil Berger have both expressed support for eliminating. These measures come amid growing concerns over rising electricity bills and the unprecedented demand for power and water driven by hyperscale data centers supporting AI and cloud computing, which Duke Energy identifies as a key factor in future demand and its recent rate hike request.
Public opinion in North Carolina shows low approval for data center construction in local communities, citing worries about water usage, noise pollution, and increased utility costs. The bill aims to mitigate these concerns by ensuring data centers pay their fair share and operate more sustainably, ultimately benefiting existing residential and small business customers by preventing them from subsidizing large industrial users.