Data Center Amendments.

GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2025
H 1
HOUSE BILL 1180

Short Title: Data Center Amendments. (Public)
Sponsors: Representatives Logan, Budd, and Cervania (Primary Sponsors).
For a complete list of sponsors, refer to the North Carolina General Assembly web site.
Referred to: Rules, Calendar, and Operations of the House
May 4, 2026
*H1180-v-1*
A BILL TO BE ENTITLED 1
AN ACT AMENDING THE UTILITIES AND TAX LAWS RELATIVE TO DATA CENTERS. 2
The General Assembly of North Carolina enacts: 3
SECTION 1.(a) G.S. 62-3 reads as rewritten: 4
"§ 62-3. Definitions. 5
As used in this Chapter, unless the context otherwise requires, the term: 6
… 7
(16a) "Large-load data center " means a facility (i) whose primary services are the 8
storage, management, and processing of digital data, (ii) that is used to house 9
computer and network systems, including associated components such as 10
servers and other telecommunications equipment and appliances, and (iii) that 11
has or is projected to have an aggregate demand of more than 20 megawatts. 12
Facilities located on contiguous or adjacent sites shall be considered a single 13
facility for purposes of calculating aggregate demand if under common 14
ownership or effective control. 15
(16a)(16b) "Local exchange company" means a person holding, on January 1, 1995, 16
a certificate to provide local exchange services or exchange access services. 17
… 18
(28a) "Tariff" means any compe nsation, charge, fare, rate, schedule, toll, or 19
classification demanded, observed, charged, or collected by any public utility, 20
for any service product or commodity offered by it to the public, and any rules, 21
regulations, practices, or contracts affecting such compensation, charge, fare, 22
rate, schedule, toll, or classification. 23
…." 24
SECTION 1.(b) G.S. 62-133.5(h)(1)a. reads as rewritten: 25
"a. Local exchange company. – The same meaning as provided in 26
G.S. 62-3(16a).G.S. 62-3(16b)." 27
SECTION 1.(c) Article 7 of Chapter 62 of the General Statutes is amended by adding 28
a new section to read: 29
"§ 62-133.25. Electric service tariffs for large-load data centers. 30
(a) Each electric public utility shall file for Commission approval a tariff for the provision 31
of electric service to large-load data centers , as defined in G.S. 62-3. This tariff shall be 32
applicable only for customers that are large-load data centers. However, the Commission may 33
approve a tiered tariff schedule that includes different rates, terms, or conditions for different 34
General Assembly Of North Carolina Session 2025
Page 2 House Bill 1180-First Edition
classes of large-load data centers based on load requirements or other factors related t o the cost 1
of service. 2
(b) Each tariff application filed with the Commission under this section shall be designed 3
to ensure that large-load data center customers are responsible for the entire cost of any capital 4
investments or incremental operational expenses necessary for the util ity to provide electric 5
service to large-load data centers and to protect other electric customers from incurring any rate 6
increases caused by serving large-load data center customers. Furthermore, tariff applications 7
shall include provisions necessary to ensure that other electric customers are not placed at higher 8
risk of shouldering any stranded costs as a result of large-load data center customer s ceasing 9
operations or else consuming less electricity than initially requested. 10
(c) The Commission shall require that each tariff filed by an electric public utility to serve 11
large-load data centers incorporate the following terms and conditions for the protection of other 12
customers: 13
(1) A minimum contract term that obligates a large-load data center customer to 14
take electric service for a term of no less than 10 years. 15
(2) A minimum billing demand requirement that obligates a large-load data center 16
customer to take or pay , for a period of no less than 10 years following 17
commencement of service, at least eighty-five percent (85%) of the maximum 18
electric service requested by the customer. 19
(3) A financial assurance or surety requirement that is sufficient to protect other 20
ratepayers against any material increase in rates occurring as a result of a 21
large-load data center customer ceasing operations or taking less service than 22
initially requested. 23
(4) A requirement that a large-load data center customer give the electric public 24
utility advanced notice prior to any anticipated reduction in its demand for 25
electricity. 26
(5) Any other provisions that the Commission determines to be reasonable and in 27
the public interest. 28
(d) The Commission may only approve a tariff application for providing electric service 29
to large-load data centers upon finding that the tariff, in addition to being just and reasonable and 30
in compliance with the requirements of this section, includes rates, terms, and other conditions 31
necessary to protect and hold harmless other electric customers from having to bear any increased 32
costs attributable to serving large-load data centers." 33
SECTION 1.(d) This section is effective when it becomes law. The tariff application 34
required to be filed with the Utilities Commission pursuant to G.S. 62-133.25, as enacted by 35
subsection (c) of this section, shall be filed by the electric public utility no later than 180 days 36
after the effective date of this section. Effective January 1, 2028, an electric public utility shall 37
not provide electric service to a large-load data center except under the terms of a tariff approved 38
by the Utilities Commission in accordance with G.S. 62-133.25. 39
SECTION 2.(a) G.S. 105-164.3(47), 105 -164.3(79), 105 -164.3(201), 40
105-164.13(43a)b., 105-164.13(55), and 105-164.13(55a) are repealed. 41
SECTION 2.(b) This section becomes effective January 1, 2027, and applies to sales 42
made on or after that date. 43
SECTION 3. Except as otherwise provided, this act is effective when it becomes 44
law. 45