North Carolina lawmakers target data center growth
North Carolina House lawmakers fast-tracked Senate Bill 730, the 'Ratepayer Protection Act,' to regulate data center growth, mandate nuclear power as a replacement for retiring baseload plants, and require stricter permitting processes. The bill imposes new rules on data centers, including noise studies, water system upgrades, and environmental impact assessments, while facing criticism from energy experts and industry representatives for its rigid requirements and nuclear-focused approach.
North Carolina lawmakers are advancing Senate Bill 730, now called the 'Ratepayer Protection Act,' to impose stricter regulations on data center development and ensure grid reliability amid rising electricity costs. The bill, introduced by Reps. Matthew Winslow (R-Franklin) and Dean Arp (R-Union), mandates closed-loop water cooling systems for data centers, environmental impact studies, and local government oversight of air, water, and agricultural impacts. It also requires retiring baseload power plants to be replaced with nuclear energy, a provision critics argue lacks flexibility and could delay cost-effective solutions. The legislation passed two House committees on Tuesday and is expected to reach the House floor soon, following a Memorial Day break. Winslow cited increasing electricity bills due to data center growth as justification, stating the bill ensures 'fair share' contributions to grid stability. Municipalities across the state have already imposed moratoriums on new data centers while assessing regulations. Democrats and energy advocates criticized the nuclear-specific requirement, arguing it restricts the state’s ability to adopt least-cost energy solutions. Rep. Brandon Lofton (D-Mecklenburg) questioned the focus on nuclear, noting its long construction timelines, while Kathy Martin of Democracy Out Loud opposed the legislature dictating power sources. Khara Boender, director of state policy at the Data Center Coalition, warned the bill’s prescriptive mandates—like cooling technology requirements—could hinder innovation and industry operations. The debate highlights tensions between economic growth, energy reliability, and environmental concerns in North Carolina. Lawmakers aim to prevent grid failures like the 2022 Christmas Eve blackout, but opponents argue the bill’s rigid approach could stifle progress in renewable energy and data center expansion. Public feedback suggests further revisions may be needed before final approval.
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