North Carolina advances far-reaching data center bill

By Arianna Skibell | 06/03/2026 06:49 AM EDT

The Republican-backed proposal would impose new regulations on the energy-hungry facilities, as well as set in motion a repeal of the state’s 2050 climate goal.

North Carolina Gov. Josh Stein (D) is interviewed.

North Carolina Gov. Josh Stein (D) is interviewed at West Henderson High School after meeting with health science students on Aug. 20, 2025, in Fletcher, North Carolina. Chris Carlson/AP

North Carolina lawmakers are quickly moving legislation that would slap new guardrails on data centers but also open the door to the elimination of the state’s long-term climate goal.

The measure, which cleared a key committee hurdle on Tuesday, would force data centers to pay for more of their own power and infrastructure needs. But the far-reaching proposal also would prohibit the retirement of coal-fired power plants until utilities have secured key permits for building nuclear facilities. And it would solicit a study on the state’s 2050 carbon-neutrality target that could serve as justification for rescinding that climate benchmark.

“North Carolinians are seeing higher electricity bills driven by rapid data growth and aggressive energy mandates,” said Republican state Rep. Matthew Winslow, who supports the measure. “Senate Bill 730, the Rate Payer Protection Act, puts our families and small businesses first by making data centers pay their fair share and strengthen grid reliability.”

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Legislators on the state House Commerce and Economic Development Committee advanced the measure Tuesday morning without objection. The Republican-backed bill could hit the House floor for a vote as soon as Thursday — where it likely will receive a warm reception. Both chambers of North Carolina’s Legislature are controlled by Republicans.

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