NC lawmakers seek new guardrails for growing data center industry
North Carolina lawmakers are advancing the Ratepayer Protection Act, a state bill that would require large data centers to cover all new infrastructure and energy costs. The legislation also mandates environmental reviews and restricts water-intensive cooling systems. This is a response to consumer concerns over rising electricity bills and local impacts, though business groups warn it could deter future investment in the state.
RALEIGH, N.C. – The North Carolina General Assembly is considering the Ratepayer Protection Act, a state bill designed to impose new financial and environmental requirements on large data centers. The House Rules Committee recently passed the legislation, which targets data centers consuming over 100 megawatts – comparable to the power usage of a mid-sized city.
Co-sponsor Rep. Larry Arp (R-Union) stated the bill aims to establish "guardrails" for data center development in response to "consumer outrage" over rising electricity bills and local impacts. The legislation would mandate that large data centers cover all new infrastructure and energy costs, prohibit eminent domain for their projects, and eliminate local tax incentives. Additionally, it requires environmental reviews, noise studies, and restricts certain water-intensive cooling systems due to concerns about high water consumption. Rep. Keith Winslow (R-Franklin), another co-sponsor, highlighted that a large data center can use between 1 million and 5 million gallons of fresh water daily.
The bill's introduction comes amidst local pushback against data center projects in various North Carolina communities, with some areas imposing moratoriums. While proponents emphasize protecting ratepayers and communities, business and trade groups have voiced concerns. Susan Vick of the Carolina Industrial Group for Fair Utility Rates warned that increased electricity costs could deter future investment. Khara Boender, senior manager of state policy for the Data Center Coalition, argued that many rural communities view data centers as opportunities for jobs, tax revenue, and infrastructure, noting the industry's significant $18.5 billion contribution to the state's GDP and support for over 117,000 jobs in 2024. The bill is slated for a full House vote, with lawmakers expected to consider several amendments.