North Carolina Considers Electricity Rules for Data Centers

North Carolina is advancing new electricity rules for large data centers as AI-driven computing accelerates power demand. The state's Energy Policy Council Load Growth Task Force met to discuss policy options, WRAL reports. Options under discussion include a mandatory "large-load tariff," separate rate classes for major consumers, minimum monthly bills, exit fees when projects cancel, and on-site power generation requirements. Duke Energy says data centers account for more than 85% of projected load growth from new economic development projects in North Carolina, per WRAL.

The NC House passed SB 730 by a 69-44 vote in early June 2026, WRAL and NC Newsline report; the bill now awaits Senate action. Key provisions: applies to facilities with peak monthly demand above 100 MW; requires 15-year minimum utility contracts with minimum billing; mandates closed-loop cooling systems (banning open-loop and evaporative alternatives); requires developers to cover grid expansion, transmission upgrades, and new generation costs directly, rather than socializing those costs across all ratepayers. Critics warn a provision blocking Duke Energy from retiring older coal plants until a 1 GW+ nuclear facility is approved could prolong reliance on expensive coal generation, per NC Newsline and Inside Climate News.

A separate House measure, HB 1063, targets facilities with peak demand above 40 MW. It would eliminate the state sales tax exemption for qualifying data centers, require public reporting of electricity and water consumption, and mandate that facilities above the 40 MW threshold generate at least 25% of power on-site from emissions-free sources, per WUNC and GovTech.

Carolina Public Press reports at least 93 data centers currently operate in North Carolina, with more than 20 announcements since the start of 2025. Municipalities from Charlotte to Boiling Spring Lakes have enacted temporary moratoriums amid community concerns over electricity, water, and local planning capacity.

Together, these measures shift commercial risk allocation: minimum billing and long-term contracts reduce utility exposure while raising capital commitment requirements for developers; cooling bans narrow acceptable thermal-management architectures; the 100 MW and 40 MW thresholds determine which builds face the strictest rules; and cost-recovery mechanisms determine whether grid upgrades are socialized or allocated to new customers. Those are structural variables for capacity planning, procurement, and total-cost modeling.

Track SB 730 in the NC Senate and any governor action; the outcome of Duke Energy pending rate case filings; and formal recommendations from the Energy Policy Council Load Growth Task Force. Also watch whether regulators adopt a distinct rate class for data centers, technical standards for cooling or on-site generation, and whether HB 1063 advances alongside SB 730.