The US state of North Carolina is deliberating its bill for large-load customers (peak electricity demand of 40MW or greater OR water consumption exceeding 1 billion litres annually), intended to regulate data centre development in the state.
A few provisions stand out. (all quotes from the proposed North Carolina bill)
On having clean energy on-site
No person shall begin operation of a large data center without installing sufficient on-site clean generation capacity to offset at least twenty-five percent (25%) of the data center's projected peak electricity demand. (North Carolina Bill HB 1063: Ratepayer and Resource Protection Act)
For comparison, Pennsylvania’s data centre bill, passed by the house in March this year, does not set a requirement for on-site generation. There's a provision 10% of annual consumption to be procured from new clean firm energy resources located in Pennsylvania in 2027. This will be increased to 14.5% by 2030 and 32% by 2035. (HB 1834, pending for approval in Pennsylvania Senate)
Such generation capacity shall be operational upon the date that the large data center commences commercial operations. No off-site renewable energy credits, virtual power purchase agreements, or similar instruments may be credited toward satisfying the on-site clean generation requirement under this section.” (North Carolina Bill HB 1063: Ratepayer and Resource Protection Act)
The Pennsylvania bill allows for the data centre developers to pay into the clean energy fund instead of procuring from a specific source. It does not require on-site generation.
Exclusion from economic incentives
This is surprising. Many large projects have seen incentives from local governments, such as payments in lieu of taxes for a certain number of years. The North Carolina bill explicitly prohibits these.
(a) Notwithstanding any other provision of law, data centers shall be ineligible to receive any infrastructure grants or other incentives funded directly or indirectly by utility ratepayers.
(b) Notwithstanding any other provision of law, a local government shall not grant or provide to a data center any local tax incentive, subsidy, or financial assistance, including property tax abatements, deferrals, rebates, grants, or payments in lieu of taxes. Nothing in this subsection prohibits local governments from providing generally available services or infrastructure on the same terms offered to similarly situated commercial or industrial users.” (North Carolina Bill HB 1063: Ratepayer and Resource Protection Act)
The North Carolina bill has some of the most intense cost-allocation measures set by any US state for data centre development thus far. If passed, the bill comes into effect on 1 July 2026.
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