The race to power AI could reshape North Carolina’s grid — and its communities
Data center growth in North Carolina is facing significant public and regulatory scrutiny, particularly Amazon's proposed Richmond County campus. Concerns are rising over increased electricity costs for residents and the environmental impact of hundreds of diesel generators. Protests and public hearings highlight the debate over how the state will meet the enormous power demand from these facilities.
Nurses and environmental advocates protested outside the North Carolina General Assembly in Raleigh on July 24, raising concerns about electricity costs and new energy infrastructure required for data centers, particularly given Duke Energy's proposed rate hikes. An N.C. State University professor and North Carolina Environmental Justice Network board member, Ajamu Dillahunt-Holloway, spoke out against Duke Energy receiving tax breaks for its data centers while proposing a 15% rate increase for customers.
A week later, Richmond County residents and allies gathered in Rockingham for a public hearing by the N.C. Department of Environmental Quality concerning air-permit applications from Amazon and Duke Energy for Amazon's proposed data center campus. Shaun Ingram, a resident, expressed disappointment, stating that initial promises of investment and jobs now lead to concerns about air permits, diesel generators, emissions, noise, water demand, and risks to already burdened communities. The project in Richmond County, a state-designated Tier 1 economically distressed county, involves a $10 billion investment from Amazon and 500 jobs.
Attorney General Jeff Jackson has also weighed in, stating that Duke Energy Progress understated the impact of a proposed energy rate settlement, arguing residential rates would rise by 9.3% instead of the projected 6.8%. The public and regulatory scrutiny highlights a broader challenge for North Carolina in meeting the substantial electricity demand from hyperscale data centers. Critics fear this demand will necessitate new, polluting power plants, additional transmission lines, higher customer bills, and increased pollution in rural areas.
The North Carolina Energy Policy Task Force reported that data centers account for 80% of Duke Energy's projected energy demand through 2030, despite being only 30% of economic-development projects in their pipeline. Researchers from Duke University suggest that flexible power use by large electricity consumers, including data centers, could defer the need for some new power plants and transmission lines for several years by reducing demand during peak hours.