Tech giants may pay more for NC power grid upgrades
Duke Energy and major technology companies have proposed a North Carolina settlement requiring large electricity users, including data center developers, to pay upfront for dedicated grid upgrades. State officials and environmental groups support shifting costs away from households but want stronger transparency, clean-energy requirements and ratepayer protections before the Utilities Commission approves the deal.
Duke Energy and major technology companies including Amazon, Meta, Google and Microsoft have reached a proposed settlement that would require electricity customers using at least 50 megawatts to pay upfront for dedicated grid improvements such as substations. The proposed contracts would last 10 to 15 years, allow Duke to curtail power during emergencies and impose penalties for early termination.
The North Carolina Utilities Commission must approve the agreement, potentially before the end of November. Attorney General Jeff Jackson called it a significant step but said the commission should require data centers to cover their full system impacts and bring clean energy resources, while the Southern Environmental Law Center urged stronger protections and transparency for households. Gov. Josh Stein's administration and environmental groups are expected to submit additional comments opposing the proposal's limits on clean-energy and ratepayer safeguards.