Charlotte Reviews Water Rate Structure for Data Centers as Moratorium Continues
Charlotte Water officials are reviewing the water rate structure for data centers and considering separate rate categories, while assuring residents that current data center operations are not raising residential bills. The city enacted a 150-day moratorium on new data center applications in June, which is set to expire in November, to study infrastructure capacity and policy changes. Community meetings are being held to gather feedback on potential new rules, and Attorney General Jeff Jackson is advocating for a separate electricity rate class for data centers.
Charlotte Water officials are currently reviewing the water rate structure for data centers and exploring the possibility of implementing separate rate categories for these facilities. Despite this review, Jennifer Frost, Public Affairs Manager for Charlotte Water, stated that existing data centers have not led to increased residential water or sewer rates, nor are future increases anticipated due to data center demand. The utility operates on a "growth pays for growth" model, requiring developers to fund any necessary infrastructure improvements directly related to their projects.
The City of Charlotte enacted a 150-day moratorium on new data center applications in June, which is scheduled to end on November 5th. This pause was implemented to allow officials time to assess existing infrastructure capacity and develop potential new policies concerning data center development. Projects that received prior approval are unaffected and can proceed during the moratorium period.
In conjunction with the ongoing review, the city has initiated a series of community meetings to solicit resident feedback and concerns regarding potential new rules for data centers. Separately, Attorney General Jeff Jackson has urged Duke Energy to establish a distinct electricity rate class for data centers, aiming to prevent residential customers from bearing the costs of power plant and grid upgrades necessitated by data center energy demands.