North Carolina bill targets data center impacts on communities, utility rates

A new legislative measure, the "Ratepayer Protection Act," is advancing through the North Carolina General Assembly to address growing concerns regarding the impact of data center development on local communities and utility costs. Introduced in response to community pushback and several local moratoriums on new data projects, the bill aims to establish "guardrails" for the industry's rapid growth driven by artificial intelligence.

The proposed legislation specifically targets large data centers with power demands exceeding 100 megawatts, equivalent to the electricity consumption of 80,000 households. Key provisions include requiring these facilities to contract for their own utility infrastructure and energy costs, ensuring these expenses are not passed on to ratepayers. Additionally, the bill prohibits ownership by foreign adversaries and disallows new local taxpayer incentives.

Environmental safeguards are also a focus, with the bill mandating environmental reviews and noise studies. It seeks to restrict certain water-intensive cooling systems, noting that large data centers can consume between 1.5 million and 5 million gallons of fresh water daily. While supporters emphasize the importance of managing growth responsibly, trade groups have expressed concerns that these new regulations could deter future investment in North Carolina, arguing that many rural communities view data centers as economic opportunities.

The Ratepayer Protection Act recently passed the House Rules Committee and is scheduled for a full House vote.