Tillis criticizes energy policy, warns GOP faces losses as NC debates data center costs
North Carolina officials are debating how data centers should pay for the electricity generation and grid infrastructure needed to serve them. Duke Energy’s proposed customer protections would require upfront payments, long-term contracts and minimum bills, but state officials say the plan should also make data centers cover new power generation costs.
At an energy conference in Cary, U.S. Sen. Thom Tillis and other North Carolina lawmakers argued that data center operators should bear the costs of the electricity infrastructure their projects require rather than shifting those costs to households. The debate comes as the state anticipates rising power demand and weighs how to expand generation while maintaining reliability and affordability.
Duke Energy’s proposed agreement with North Carolina Public Staff, technology companies and other parties would require large customers to pay upfront for dedicated connection equipment, sign long-term contracts and meet minimum monthly bills. Duke Energy North Carolina President Kendal Bowman said the plan would protect existing customers, but Attorney General Jeff Jackson and Gov. Josh Stein said it does not go far enough because it would not require data centers to fund new power plants needed to meet their demand. Jackson also called for a separate rate class for large customers.
The proposal requires approval from the North Carolina Utilities Commission. Federal regulators separately approved Duke Energy Carolinas rules for serving large users over high-voltage lines, while encouraging stronger safeguards against transferring costs to other customers. Tillis also criticized federal decisions affecting renewable energy projects and incentives, saying uncertainty could hinder efforts to provide the additional electricity North Carolina needs.