NC House Bill Targets Data Centers, Boosts Nuclear Power Development
The North Carolina House has passed a bill that aims to regulate data centers and accelerate the development of nuclear power. This legislative action could potentially affect the infrastructure costs and availability for streaming companies that currently operate or plan to build data centers in the state.
Key Takeaways
- The bill mandates data center regulations, including requirements for noise studies and water usage standards (NC Newsline, June 2026).
- It prohibits the retirement of existing baseload power plants until nuclear resources can replace them, aiming to maintain grid reliability (NC Newsline, June 2026).
- The legislation seeks to shift infrastructure and energy costs to data centers to prevent rising utility bills for other ratepayers (WRAL, June 2026).
- The Data Center Coalition, representing companies like Google and Amazon, has expressed concerns over provisions impacting competitiveness and specific cooling technology mandates (NC Newsline, June 2026).
- The bill's energy provisions, particularly the focus on nuclear power, have drawn criticism from some lawmakers due to potential cost overruns and long development timelines (WRAL, June 2026).
Why It Matters
New North Carolina data center regulations will directly affect operating expenditures for streaming providers. Increased compliance costs and potentially higher energy prices could impact the profitability of infrastructure in the state, potentially leading to a re-evaluation of expansion plans. This move reflects a growing trend of states attempting to balance economic development with environmental concerns and grid stability. Watch for other states to propose similar legislation as data center energy consumption continues to increase, creating a patchwork of varying regulatory environments for streaming infrastructure.
Additional Context
The North Carolina House voted 69-44 on June 3, 2026, to approve the bill, a modified version of Senate Bill 730, now titled the “Ratepayer Protection Act” (NC Newsline, June 2026). The legislation passed through two committees prior to the House vote and now moves to the Senate for consideration (NC Newsline, June 2026). Rep. Matthew Winslow (R-Franklin), a co-author, stated that the bill aims to ensure data centers “pay their fair share” to strengthen grid reliability and address rising electricity bills for North Carolinians (WRAL, June 2026). Municipalities statewide have implemented moratoriums on data centers as they explore necessary regulations (NC Newsline, June 2026).
The bill initially included a mandate for data centers to use closed-loop water systems for cooling, but this was amended to allow the N.C. Department of Environmental Quality to set water usage standards instead (WRAL, June 2026). The Data Center Coalition, representing major tech companies, specifically criticized provisions related to cooling technologies and restrictions on economic development tools, citing potential negative impacts on North Carolina's competitiveness (NC Newsline, June 2026). House Democrats, while supporting data center regulation, raised concerns about the inclusion of controversial energy policy provisions, specifically those fast-tracking nuclear power, pointing to potential cost increases and long development times for nuclear plants (WRAL, June 2026). Separately, Attorney General Jeff Jackson is fighting Duke Energy’s proposed 18% rate hike, driven in part by new data centers, and has suggested different rates for data centers to reflect their grid strain (WRAL, June 2026).
Read full article at ktiv.com
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