{"id":173,"date":"2026-05-21T16:04:49","date_gmt":"2026-05-21T16:04:49","guid":{"rendered":"https:\/\/northcarolinamovingjournal.com\/?p=173"},"modified":"2026-05-21T16:04:49","modified_gmt":"2026-05-21T16:04:49","slug":"nc-house-panel-advances-data-center-restrictions","status":"publish","type":"post","link":"https:\/\/northcarolinamovingjournal.com\/?p=173","title":{"rendered":"NC House panel advances data center restrictions"},"content":{"rendered":"
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The North Carolina House Energy and Public Utilities Committee voted Wednesday to advance a bill banning data centers from shifting energy costs to other consumers and requiring additional studies before new facilities can be approved.<\/span><\/p>\n

Read more NC voters set to weigh in on limiting state income tax and property taxes in November<\/a><\/p>\n

Senate Bill 730<\/span>, \u201cRatepayer Protection Act,\u201d is one of <\/span>several proposals<\/span> to regulate data centers at the state level. They come as local municipalities <\/span>impose moratoriums<\/span>, or temporary bans, so they can learn more about the facilities before approving them.<\/span><\/p>\n

The bill sets measures for responsible data center development, such as requiring large data centers to conduct noise studies, and allowing local governments to assess impacts on water, air quality, agricultural resources and thermal plumes before approval.\u00a0<\/span><\/p>\n

Data centers would also be required by law to implement closed-loop water systems, which use as little water as possible to cool systems.\u00a0<\/span><\/p>\n

\u201cThis legislation puts ratepayers first by requiring data centers to pay their own money, protecting our water resources, strengthening energy reliability and preventing cost shifts onto families and small businesses,\u201d Rep. Matthew Winslow (R-Franklin) said.\u00a0<\/span><\/p>\n

S730 also bans local tax incentives for data centers, but it does not address tax incentives at the state level \u2013 an issue that Republican and Democratic lawmakers alike have said needs to be revisited. Gov. Josh Stein has asked the legislature to <\/span>modify or repeal<\/span> existing statewide tax breaks for data centers.<\/span><\/p>\n

Rep. Ray Jeffers (D-Person) asked for the reasoning behind the restriction on local incentives. He said his county wants a data center and has been working on a deal with Microsoft that isn\u2019t yet finalized.<\/span><\/p>\n

\u201cWhy take away the competitiveness between the counties?\u201d he asked.\u00a0<\/span><\/p>\n

Rep. Dean Arp (R-Union) said he views energy policy and consumption as state issues.\u00a0<\/span><\/p>\n

\u201cIt affects everybody in the state in terms of the rate, the way everybody pays for it, and that\u2019s why we believe it\u2019s properly vetted here,\u201d Arp said.\u00a0<\/span><\/p>\n

The bill would also require an examination of the state\u2019s existing utility policies \u201cto ensure these policies are not exacerbating affordability issues\u201d for the state\u2019s residents, according to the bill\u2019s text.<\/span><\/p>\n

Read more North Carolina lawmakers push bills to require AEDs in public schools<\/a><\/p>\n

Under the bill, existing baseload power plants could not be retired until they can be replaced with nuclear resources to ensure enough energy in the grid.\u00a0<\/span><\/p>\n

\u201cThe whole bill is about reducing the ratepayer\u2019s cost for energy. They\u2019re getting squeezed,\u201d Arp said. \u201cWhat we\u2019re trying to do is look at all the above where ratepayers are affected by energy policy in North Carolina, and we don\u2019t want rigid adherence to something just because we\u2019ve passed it in the past.\u201d\u00a0<\/span><\/p>\n

Rep. Pricey Harrison (D-Guilford) asked about how that process would work.<\/span><\/p>\n

\u201cThere was some concern that it might spark the life of coal power plants at a time when we absolutely need to be reducing our carbon emissions,\u201d she said.<\/span><\/p>\n

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NC bills target data center boom, seeking tax changes, consumer protections<\/p>\n<\/blockquote>\n