Raleigh – Governor Josh Stein asked the North Carolina Utilities Commission on Thursday to adopt “large‑load” tariffs that would require data‑center operators to shoulder a greater share of the electricity generation and transmission costs they impose on the grid. Stein said the proposal is a common‑sense step to ensure that the state’s wealthiest technology firms do not shift their power‑usage expenses onto regular North Carolinians.
Why the tariffs are needed
Stein explained that data centers consume massive amounts of electricity, and without targeted rates the cost of that consumption can be spread across all ratepayers. “There is no reason why the largest, wealthiest companies in the history of the world cannot be required to pay for the energy generation and transmission costs that they put onto the system,” the governor said at a press conference in Raleigh.
Comparisons with other states
The governor cited examples from Minnesota, Indiana and Ohio where tech giants have agreed to fund wind, solar, battery storage or nuclear projects in exchange for operating data centers. “North Carolina should be receiving these same kinds of commitments, but right now we’re getting none of them,” Stein added.
Current settlement and its limits
Earlier this year Duke Energy reached a provisional agreement with several data‑center operators that includes a public contract template, minimum‑purchase protections and a five‑year requirement that large users reduce power when the grid is strained. While Stein praised those protections as “better than nothing,” he argued they fall short of what is needed for long‑term grid reliability and clean‑energy goals.
Critics and political context
Some critics warned that higher tariffs could raise electricity costs for all customers. Those objections come from industry‑friendly observers and a Republican‑led state legislature that stripped the governor of direct control over the Utilities Commission after his 2024 election. Attorney General Jeff Jackson, also a Democrat, echoed Stein’s concerns, noting that data centers should be treated as a distinct rate class because of their sheer energy demand.
Utility response
Duke Energy, which supplies most of the state’s power, said it is already working with Amazon, Google, Microsoft and Nucor on clean‑energy agreements in North and South Carolina. “In this new era of large‑scale energy demand, Duke Energy is committed to working with our regulators and customers to find innovative and responsible ways to satisfy the growing need for more and cleaner energy,” said Lon Huber, a senior executive at Duke.
Next steps
The Utilities Commission is expected to finalize its settlement with Duke Energy soon. Stein and Jackson both urged the commission to adopt the large‑load tariffs and to require data‑center operators to provide clean‑energy offsets, arguing that such measures would protect ratepayers and support economic development in North Carolina’s communities.
Original reporting: WRAL Raleigh — read the source article.
