NC House advances data center, nuclear power bill

Summary

North Carolina House lawmakers advanced a bill regulating data centers and tying baseload power replacement to nuclear resources.

Why this matters

The bill could affect how large data centers are approved in North Carolina, how they use water, and how utilities plan future power generation. It also would shape local government review and state energy policy as electricity demand grows.

North Carolina House lawmakers moved ahead with a bill that would regulate large data centers, require replacement baseload power to come from nuclear resources, and speed permitting for new plants.

Reps. Matthew Winslow, R-Franklin, and Dean Arp, R-Union, presented the revised Senate Bill 730, titled the “Ratepayer Protection Act,” shortly before the General Assembly’s Memorial Day break. The bill passed two House committees Tuesday and was expected to go to the House floor Wednesday, June 3.

Winslow told the House Commerce Committee that rising electricity bills were tied to data growth and energy policy. “[This bill] puts our families and small businesses first by making data centers pay their fair share in strength and grid reliability,” he said.

The bill would set standards for large data center projects, including noise studies, and would allow local governments to review effects on water, air quality, agricultural resources, and thermal plumes before approval. It also would require data centers to use closed-loop water systems that reuse water for cooling rather than allow it to evaporate.

The measure would bar retirement of existing baseload power plants until they can be replaced with nuclear resources.

During committee discussion, Rep. Pricey Harrison Lofton questioned why the bill would require waiting for nuclear facilities, which could take years, rather than giving regulators flexibility to pursue a least-cost path.

Winslow said the bill focused on preserving baseload generation. He said solar and wind are not baseload power because their output depends on natural conditions.

“The last thing we want is another Christmas Eve brownout,” Arp said, referring to rolling outages on Dec. 25, 2022, during severe cold weather. “No family is going to get rid of their family car before they have the ability to go get another car, or else they’re going to be walking.”

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