NC legislators push bill to regulate data centers, rein in public costs

North Carolina legislators are pursuing the "Ratepayer Protection Act," a bipartisan bill designed to mandate that data centers bear the full costs of their substantial power needs, thereby shielding residents from escalating electricity bills. The proposed legislation, which originated in the N.C. Senate and has been returned to the Senate after House amendments, comes amid growing public concern over the impact of data centers on the state's energy grid and utility rates.

Key provisions of Senate Bill 730 would require data center developers to submit site assessment reports detailing noise, environmental effects, and cooling system impacts, emphasizing closed-loop water or liquid cooling. Developers would also need to secure contracts with local utilities guaranteeing they cover any additional power infrastructure costs, potentially by providing their own power sources. Additionally, the bill aims to prevent local governments from offering incentives or using eminent domain for data center land acquisition.

While largely supported, the bill has drawn criticism from some Democrats and environmentalists over a contentious clause that could delay the retirement of existing coal plants until new nuclear power resources are available, potentially hindering the state's carbon neutrality goals. The N.C. Energy Policy Task Force, formed by Gov. Josh Stein, highlighted data centers' significant role in projected energy demand growth, emphasizing the need for projects that benefit the state as a whole. Chatham County has already imposed a one-year moratorium on new data centers due to similar concerns.

Despite some industry lobbying concerns, the bill is expected to pass the Republican-controlled General Assembly and be sent to Democratic Gov. Josh Stein, who has previously advocated for data centers to be financially responsible for their energy consumption.