Forsyth County's data center decision: what's at stake, and where statewide debates stand?
Forsyth County commissioners are set to vote on a data center proposal in Rural Hall, while residents advocate for a development moratorium due to environmental and energy bill concerns. This local decision is part of a broader statewide debate in North Carolina, where several counties have enacted or are considering moratoriums. Concurrently, the North Carolina Utilities Commission is reviewing Duke Energy's proposed rate hike and a potential tariff for large electricity consumers like data centers.
Forsyth County commissioners are slated to vote Thursday evening on a proposal to allow a data center in Rural Hall, North Carolina. This decision comes amid strong resident opposition and calls for a county-wide moratorium on data center development, driven by concerns over environmental impact, quality of life, and potential increases in energy bills. While Forsyth County has not officially considered a moratorium as of late July, several other North Carolina counties, including Surry, Davie, and Mount Airy, have already enacted pauses on data center construction, while Davidson, Alamance, and Yadkin counties are still debating similar measures. Stokes County and Greensboro recently rejected proposed moratoriums.
A significant part of the debate revolves around electricity costs. The North Carolina Utilities Commission is currently reviewing Duke Energy's request for a 9.5% rate increase over two years. Amid this, Duke Energy had previously agreed, as part of a settlement with the state, to discuss implementing a tariff that would require large-load customers, such as data centers, to cover all new energy infrastructure costs, preventing these expenses from being passed to other ratepayers.
Last week, Duke Energy also signed a voluntary ratepayer protection pledge. However, Governor Josh Stein and Attorney General Jeff Jackson are now urging the utility to make these commitments legally binding through the state Utilities Commission to ensure long-term protection for consumers. The outcome of both the Forsyth County vote and the Utilities Commission's decisions will significantly shape the future of data center development and energy policy in the region.