North Carolina Proposes Bill for Data Center Cost Coverage

A new bill introduced in North Carolina, the "Ratepayer and Resource Protection Act," mandates that large-load data centers must bear the full cost of the necessary energy and water infrastructure. Proposed by Representative Lindsey Prather, the legislation specifically targets facilities with a peak energy demand of 40MW or more, along with substantial water consumption, and requires these centers to incorporate on-site clean energy generation to meet at least 25% of their peak electricity demand. This will also involve filing annual reports detailing consumption and operational efficacy.

The strategic shift brought by this bill reflects a growing trend among states to impose clearer regulations on data centers to protect local ratepayers from undue financial burden. Similar legislation has emerged in states like Ohio and Virginia, aiming to mitigate cost-shifting by requiring data centers to directly contribute to infrastructure development. If enacted, this bill could increase the resilience of energy supply in North Carolina while promoting cleaner energy practices, albeit it may also impose stricter operational costs on data centers, potentially influencing their attractiveness to locate in the state.