Tillis Warns NC GOP on Energy Costs Amid Data Center Fight
Retiring Sen. Thom Tillis warned North Carolina Republicans that poorly designed electricity policies could fuel political backlash as regulators debate how data centers should pay for new power infrastructure. Duke Energy has proposed customer protections requiring upfront payments, long-term contracts and minimum bills, while state regulators have questioned the reliability of projected data center demand.
Speaking at the Making Energy Work conference in Cary, retiring U.S. Sen. Thom Tillis criticized energy policies that could leave households bearing costs associated with North Carolina's rapidly expanding data center industry. He urged Republicans to focus on affordability and reliability while supporting a mix of energy sources and greater certainty for businesses.
North Carolina Attorney General Jeff Jackson and Gov. Josh Stein have argued that Duke Energy's proposed protections do not go far enough and have called for large data center customers to pay for the new generation they require. Duke's proposed agreement with the North Carolina Public Staff and technology companies would require upfront payments for dedicated equipment, long-term contracts and minimum monthly bills, but still needs approval from the North Carolina Utilities Commission.
Federal regulators separately approved Duke Energy Carolinas rules requiring large-load customers to pay for at least 75% of planned demand under a 15-year payment floor. The North Carolina Utilities Commission also rejected a $584 million Duke Energy Progress gas-fired peaker project after finding the utility's data center-driven growth projections insufficiently reliable. Public opposition has grown, with dozens of local governments pausing new data center development over electricity and water concerns.