NC regulators deny Duke Energy’s $584 million gas turbine proposal near Amazon data center

North Carolina regulators have denied Duke Energy's request to construct a $584 million natural gas turbine near Hamlet, citing insufficient evidence regarding the project's necessity and customer cost protection. The proposed 255-megawatt turbine, intended to meet growing electricity demand by 2030, would expand the Sherwood H. Smith Energy Complex, located adjacent to Amazon's planned $10 billion data center campus in Richmond County.

The North Carolina Utilities Commission stated that much of the anticipated demand growth appears tied to future data centers, and approving the turbine before a clear need is established would expose customers to potentially unwarranted costs. While the Public Staff, representing utility customers, had recommended approval despite describing the cost as "staggering," one commissioner dissented, arguing the project is crucial for grid reliability. Duke Energy has stated that large customers, including data centers, cover direct connection costs, with power plant expenses shared among all users based on consumption and capacity. The commission, however, found Duke failed to adequately detail how these protections and federal ratepayer pledges would apply to the new turbine. Regulators require Duke to provide a clearer explanation of demand, cost allocation, and alternative power solutions if it chooses to reapply.