Charlotte water utility addresses data center impact on residential rates amid moratorium
Charlotte residents are concerned about the impact of data centers on their water and electricity bills. Charlotte Water assures that current data centers have not caused residential water rate increases due to a "growth pays for growth" principle. Meanwhile, the Charlotte City Council has enacted a 150-day moratorium on new data center applications to study infrastructure capacity and environmental concerns, and is holding community meetings for feedback.
Charlotte residents have voiced concerns regarding the potential for data centers to escalate both electricity and water bills. North Carolina Attorney General Jeff Jackson has urged Duke Energy to create a distinct rate class for these facilities to prevent households from subsidizing associated infrastructure upgrades.
However, Charlotte Water Public Affairs Manager Jennifer Frost stated that existing data centers have not caused residential water or sewer rates to rise. The utility operates on a "growth pays for growth" model, requiring developers to fund any necessary infrastructure improvements for their projects. Data centers currently pay commercial or industrial water rates and account for a negligible 0.05% of Charlotte Water's average daily demand, though the utility is monitoring national trends for potential future rate changes.
In response to growing development proposals and community feedback, the Charlotte City Council imposed a 150-day moratorium on new data center applications in June. This pause, set to expire on November 5, allows officials to study infrastructure capacity, environmental impacts, and consider new policies. The city has also initiated a series of community meetings to gather resident concerns and feedback on potential new regulations.