Data centers in North Carolina

📜 State laws

Ratepayer Protection Act (SB 730): passed the House, stuck in the Senate · June 8, 2026
SB 730 is the main data center bill. The version the House passed 69-44 on June 3, 2026 covers data centers that use 100 megawatts or more. It would: make the developer study noise at homes and schools within 500 feet before a town or county approves a rezoning or permit; require a promise to use closed-loop or liquid cooling, and have the state environment agency (DEQ) write water rules that ban evaporative cooling; require a contract with the power company for each data center, with minimum bills, long terms, credit rules and exit terms so other customers do not pay its costs (filed with the Utilities Commission within 30 days); ban local governments from giving data centers economic development incentives; ban eminent domain (taking land) for data centers; and ban ownership by China, Iran, North Korea or Russia. It also has energy parts: Duke could not retire big coal or gas plants until a new nuclear plant is approved. The Senate received it on June 8, 2026 and sent it to its Rules Committee, where it still sits. Source

Ratepayer and Resource Protection Act (HB 1063): Democratic bill, not moving · April 28, 2026
HB 1063 was filed on April 27, 2026 by Democrats. It would cover data centers with a peak demand of 40 megawatts or more. It would create a separate electric rate class for data centers, make them pay for power and water infrastructure, require some on-site clean power, require reports, and limit state and local incentives, including the sales tax break. It was sent to the House Rules Committee on April 28, 2026 and has not moved. Source

Data Center Amendments (HB 1180): data center rate rules, not moving · May 4, 2026
HB 1180 was filed on April 30, 2026. It would make each power company file a special rate (tariff) for data centers using more than 20 megawatts, so data centers pay the full cost of the power plants, lines and other work needed to serve them, and other customers are protected from rate increases or 'stranded costs'. It also changes tax law for data centers. It was sent to the House Rules Committee on May 4, 2026 and has not moved. Source

Power Bill Reduction Act (SB 266, Session Law 2025-78): law since July 2025 · July 29, 2025
Not a data center law, but it changes how power plants for new demand get paid for. It removed the 2030 goal to cut power-plant carbon pollution 70% (the 2050 carbon-neutral goal stays). It lets Duke raise rates to pay financing costs for big 'baseload' power plants (such as nuclear or gas) while they are being built, outside a full rate case, if the Utilities Commission finds customers save money over the plant's life. Governor Stein vetoed it on July 2, 2025; lawmakers overrode the veto on July 29, 2025. Source

💡 Who pays for the power

Duke Energy Carolinas rate increase: settlement waiting for a decision · July 20, 2026
Duke Energy Carolinas (central and western NC) asked for a big rate increase in its 2025-2026 rate case (Utilities Commission docket E-7, Sub 1329). In July 2026 it settled with the Public Staff (the state's consumer advocate) and others for a smaller increase. For homes, the settlement means about 5.9% in 2027 and 3.6% in 2028, roughly $6.53 more a month on average. Duke shareholders add $10 million for low-income help. The Utilities Commission still has to approve it; a decision was expected in fall 2026. Source

Special rules for data center power (large load tariff): in the works · July 23, 2026
Today Duke serves big data centers through private, one-off contracts. In testimony filed in late June 2026 in its rate case, Duke proposed a 'large load tariff' for customers of 50 megawatts or more: contracts of 10 to 15 years and paying for at least 75% of the power they reserve, even if they use less. Consumer and clean energy groups asked for stricter terms (25 megawatts and up, 85%, 20 years). The July 2026 settlement did not set the details; Duke and the Public Staff agreed to work out a data center tariff on a fast track, with a filing promised by the end of September 2026. The Utilities Commission has not decided anything yet. Source

Attorney General asks for data center cost rules · Sept 16, 2026
Attorney General Jeff Jackson is a party in Duke's rate cases. He has asked the Utilities Commission for one set of rules for all data centers so costs do not shift to homes, defining large customers as 100 megawatts or more. In July 2026 Duke signed a national 'ratepayer protection pledge'; Governor Stein and the Attorney General said a promise is not enough and asked for binding rules at the Utilities Commission. Source

Regulators turned down a Duke gas turbine tied to data center growth · Sept 18, 2026
On September 18, 2026 the Utilities Commission denied Duke Energy Progress permission to build a $584 million, 255-megawatt gas turbine at the Smith Energy Complex in Richmond County. It said much of Duke's expected growth comes from data centers that are not yet certain, and that this growth was 'insufficiently reliable for the Commission to act at this point'. Duke can apply again. Source

💵 Tax breaks

Sales tax break on electricity and equipment for data centers · Oct 7, 2026
North Carolina does not charge sales tax on electricity used at a 'qualifying datacenter' or on the equipment inside it (servers, cooling, generators, substations, batteries and more). To qualify, the Secretary of Commerce must confirm at least $75 million of private investment within five years, the data center must provide health insurance to full-time workers, and outside the poorest (tier 1) counties it must meet a wage standard. An older, bigger break covers 'internet datacenters' investing at least $250 million in poorer counties. If the investment is not made, the company must pay back the tax plus interest. Local governments can also offer cash incentives under G.S. 158-7.1 (SB 730 would ban those for 100+ megawatt data centers). Source

🤐 Secret deals and public records

Anyone can ask for public records · Oct 7, 2026
Under North Carolina's Public Records Act, any person can see and get copies of government records. You do not have to live in North Carolina or say why you want them. Copies should be free or cost only what it takes to copy them. There is no fixed number of days to answer; the law says 'as promptly as possible'. If you are denied, you can go to court; the government may have to pay your lawyer if you win. Source

Local governments may not sign NDAs that hide public records · 2023
State law (changed in 2023) says no city, town or county may sign a nondisclosure agreement (secret deal, NDA) to keep public records from the public. If a town agrees to keep something confidential that state law already allows to be secret, that contract itself is a public record. An NDA tied to a closed meeting must be put in that meeting's minutes. So you can ask your town or county for any NDA about a data center. Source

Project records can be kept secret only until the project is announced · Oct 7, 2026
Records about a company that is thinking of locating in North Carolina may be withheld while talks go on, if releasing them would ruin the deal. Once the state, the town or the company announces the project (or the company says no), the records must be released within 25 business days of a request. Boards can meet in closed session to discuss bringing in a business, but any vote to sign an incentive deal or pay money must be in open session. Source

Duke's data center power contracts are private · June 17, 2026
Duke now signs confidential, one-off electric service agreements with large data centers. Their terms are not public. SB 730 would require each contract to be filed with the Utilities Commission, but parts could still be marked confidential. Source

💧 Water

Big water users must register with the state · Oct 7, 2026
Anyone who takes 100,000 gallons a day or more from a river, lake or well must register it with the state (DEQ Division of Water Resources), within two months of starting. Moving 2 million gallons a day or more from one river basin to another needs a special certificate after public notice. Most data centers buy water from a city or town water system, so the local water utility is usually the one that says yes or no. Source

No state water rule just for data centers yet · June 8, 2026
SB 730 would make DEQ write water rules for data centers of 100 megawatts or more, banning evaporative cooling. The bill has not passed, so there is no such rule today. Source

🌫️ Air and generators

Who approves backup generators and gas plants · Oct 7, 2026
Data centers usually need an air permit for their diesel or gas backup generators. The state Division of Air Quality (DEQ) issues them, except in Buncombe, Forsyth and Mecklenburg counties, which run their own local air programs. In 2026 the state list of air permits included Amazon in Hamlet, Apple in Maiden and Microsoft in Catawba County, and a new application from Compass Datacenters in Iredell County. Big power plants also need approval from the Utilities Commission. Source

🙋 How to have your say

Who decides a data center near you · Oct 7, 2026
North Carolina has cities, towns and villages (all are municipalities) and counties. There are no townships with zoning power. A city or town zones land inside its limits and may also zone a strip just outside (the 'ETJ', up to 1 to 3 miles out, depending on size). The county Board of Commissioners zones the rest; some rural counties have little or no zoning. Power is decided by the utility and the Utilities Commission, air permits by DEQ (or a local air agency), and water by the local water system or DEQ. Source

Rezonings: notices and hearings · Oct 7, 2026
Before a rezoning, the town or county board must hold a public hearing. Notice goes in the newspaper once a week for two weeks (first 10 to 25 days before), letters go to the owner and all neighbors next to the land (even across a road) 10 to 25 days before, and a sign is posted. Anyone can speak at this hearing. Boards may not 'down-zone' land (reduce what an owner can build) without the owner's written consent. Source

Special use permits work like a court hearing · Oct 7, 2026
Some data centers need a special use permit. That is decided at an 'evidentiary hearing', which works like a trial: decisions must rest on facts in the record, not opinions. Neighbors get a letter and a sign is posted 10 to 25 days before. People who would be specially affected (for example, close neighbors) can take part as a full party; others may speak as witnesses on facts. Bring expert facts (noise, traffic, property values) rather than general worries. Source

Deadlines to challenge a decision in court · Oct 7, 2026
To challenge a rezoning (zoning map change) in court you have only 60 days after it is adopted. To challenge a new zoning rule (text) you have one year. To challenge a special use permit or variance decision, you must file in superior court within 30 days after the decision takes effect or a written copy is delivered (plus 3 days if mailed). Source

Local pauses (moratoria) · Oct 7, 2026
Cities, towns and counties may pause approvals for a while, but only for a reasonable time and with a written reason and plan. A pause of 61 days or more needs the full hearing and newspaper notice. A pause does not stop projects that already have a building permit, a complete special use permit application or a vested plan. Source

How to ask for records · Oct 7, 2026
Send a short email or letter to the town clerk, county clerk or state agency asking for specific records (for example: 'all emails, NDAs and agreements about the data center on X Road since January 2025'). You do not have to say why. Ask for electronic copies to keep costs low. Anyone can ask, even if you live in another state. Source

How to comment at the Utilities Commission · Oct 7, 2026
Anyone can send a 'consumer statement' about any open case (docket) on the NC Utilities Commission website or by mail. It is added to the official record in two or three business days. The Commission does not answer, but it does consider statements. In big rate cases the Commission also holds public hearings where you can testify under oath; sign up at the hearing or for remote testimony. The Public Staff represents customers in these cases. Source

🧾 Help with your bills

Low Income Energy Assistance (LIEAP) · Oct 7, 2026
A once-a-year payment straight to your heating company. Households with someone 60 or older or disabled (getting adult services) can sign up December 1 to 31; everyone else January 1 to March 31, or until money runs out. Apply at your county Department of Social Services or online through ePASS. Source

Crisis Intervention Program (CIP) · Oct 7, 2026
Help for a heating or cooling emergency, such as a shutoff notice. Apply at your county Department of Social Services or online through ePASS. Source

📞 Who to contact

North Carolina Utilities Commission (NCUC) · Oct 7, 2026
Sets electric rates for Duke Energy and other investor-owned utilities, approves new power plants and decides the large load (data center) rules. Takes consumer statements on any docket. It does not approve data center buildings. Source

Public Staff of the Utilities Commission · Oct 7, 2026
The state's utility consumer advocate. Represents customers in rate cases and negotiated the 2026 Duke settlement. Source

NC Department of Justice (Attorney General) · Oct 7, 2026
Takes part in Duke rate cases for consumers and has pushed for data center cost rules. Source

DEQ Division of Air Quality · Oct 7, 2026
Issues air permits for data center generators and power plants (except in Buncombe, Forsyth and Mecklenburg counties). Publishes lists of permits and pending applications. Source

DEQ Division of Water Resources · Oct 7, 2026
Keeps the register of large water withdrawals, decides transfers between river basins and reviews local water supply plans. Source

Local air agencies (Buncombe, Forsyth, Mecklenburg) · Oct 7, 2026
In these three counties the local air program issues air permits and handles complaints instead of the state. Source

NC Department of Commerce · Oct 7, 2026
Confirms the investment for the data center sales tax break and runs state job grants and incentive announcements. Source

North Carolina General Assembly · Oct 7, 2026
Where data center bills (SB 730, HB 1063, HB 1180) are decided. Look up your legislators and bill status. Source