Data center settlement proposes long-term contracts and billing rules
Duke Energy, customer advocates and major data center companies have proposed settlement terms designed to ensure data centers cover the long-term costs of electricity and grid upgrades. The North Carolina Utilities Commission must approve the agreement before requirements such as 10- to 15-year contracts, minimum bills and early-termination penalties can take effect.
Duke Energy, customer advocates and major data center companies have reached a proposed settlement addressing the risk that data centers could reduce operations or leave before using the electricity and infrastructure capacity originally anticipated. The agreement would require new data center customers to sign contracts lasting 10 to 15 years, meet minimum billing obligations and pay financial penalties for ending agreements early.
The North Carolina Utilities Commission must approve the settlement. If approved, the requirements would apply to data center agreements entered into after June 2026 and are intended to prevent other utility customers from bearing the cost of grid upgrades tied to data center demand.