Jennifer Balkcom: The Fossil Fuel Industry Backed S.B. 266 Because It Would Accelerate Data Center Growth; 2026: North Carolina Was Home To About 100 Data Centers With Rapid Expansion Expected To Continue

Energy And Policy Institute: S.B. 266 Would Shift Costs From Large-Load Customers To Residential Users “As A Growing Number Of Power-Hungry Data Centers Are [Eyeing] North Carolina For Expansion”

Energy and Policy Institute: S.B. 266’s “Cost Shift To Smaller-Load Users Is Being Considered As A Growing Number Of Power-Hungry Data Centers Are Eying North Carolina For Expansion.” “S. 266 would also shift costs from large-load customers to residential users. Currently, Duke Energy’s residential customers in North Carolina use just over 40% of all the power the company purchases, rather than generates itself, and they pay for about 41% of the costs. An analysis by EQ Research found that under S. 266 residential customers would continue to use the same 40% of purchased power but would bear almost 49% of the costs. This cost shift to smaller-load users is being considered as a growing number of power-hungry data centers are eying North Carolina for expansion.” [Energy and Policy Institute, 7/25/25]

A Fossil Fuel Trade Association Supported S.B. 266 Because It Would Accelerate Data Center Growth

Consumer Energy Alliance Called Upon Governor Josh Stein To Sign S.B. 266 Into Law Because It Would Accelerate Data Center Growth, Saying The “Bill Will Help North Carolina Meet New Energy Demand From Manufacturing, Population & Data Center Growth.” “Passage of Senate Bill 266 by the North Carolina General Assembly marks progress on grid reliability, cost savings, emissions goals. Bill will help North Carolina meet new energy demand from manufacturing, population & data center growth. Consumer Energy Alliance (CEA), the leading energy and environmental advocate for families and businesses, released the following statement after the passage of Senate Bill 266 by the North Carolina House of Representatives. ‘Senate Bill 266 is essential for North Carolina’s economic future and energy reliability,’ CEA Southeast Executive Director Kevin Doyle said. ‘By modernizing utility regulations, this bipartisan legislation would allow energy companies to build faster and more affordably, ultimately saving customers billions of dollars.’ ‘At the same time, it maintains progress on emissions reductions while strengthening the reliability of the electric grid. With electricity demand rising due to population growth, manufacturing expansion, and data centers, North Carolina needs smart, forward-looking policies that protect consumers and ensure the lights stay on. We call on Governor Josh Stein to sign this important piece of legislation into law,’ Doyle said. ‘We commend the members of both the House and the Senate and look forward to continuing to work with them on important energy issues in North Carolina.’” [Consumer Energy Alliance, Press Release, June 2025]

• Energy & Policy Institute Said Consumer Energy Alliance Was An “Advocacy Front Group For Some Of The Country’s Largest Fossil Fuel Corporations And Trade Associations.” “Consumer Energy Alliance (CEA) likes to call itself ‘the voice of the energy consumer,’ but it is an advocacy front group for some of the country’s largest fossil fuel corporations and trade associations. Its members page does not include nationally recognized organizations that advocate on behalf of consumers, low-income communities, senior citizens, and minorities, such as AARP, local citizen utility boards, the NAACP, and the National Consumer Law Center. According to an internal budget document obtained by EPI, many fossil fuel, utility, and industry manufacturing corporations pay CEA tens of thousands of dollars, including Shell USA, Chevron, the American Petroleum Institute, ExxonMobil, GE Vernova, Unitil, the Edison Electric Institute, Avangrid, and Arizona Public Service.” [Consumer Energy Alliance, accessed 8/19/26]
• Energy & Policy Institute On Consumer Energy Alliance: “According To An Internal Budget Document Obtained By Epi, Many Fossil Fuel, Utility, And Industry Manufacturing Corporations Pay Cea Tens Of Thousands Of Dollars, Including Shell Usa, Chevron, The American Petroleum Institute, ExxonMobil, GE Vernova, Unitil, The Edison Electric Institute, Avangrid, And Arizona Public Service.” “Consumer Energy Alliance (CEA) likes to call itself ‘the voice of the energy consumer,’ but it is an advocacy front group for some of the country’s largest fossil fuel corporations and trade associations. Its members page does not include nationally recognized organizations that advocate on behalf of consumers, low-income communities,

senior citizens, and minorities, such as AARP, local citizen utility boards, the NAACP, and the National Consumer Law Center. According to an internal budget document obtained by EPI, many fossil fuel, utility, and industry manufacturing corporations pay CEA tens of thousands of dollars, including Shell USA, Chevron, the American Petroleum Institute, ExxonMobil, GE Vernova, Unitil, the Edison Electric Institute, Avangrid, and Arizona Public Service.” [Consumer Energy Alliance, accessed 8/19/26]

2026: North Carolina Was Home To About 100 Data Centers With Rapid Expansion Expected To Continue

2026: North Carolina Was Home To About 100 Data Centers That Accounted For Up To 3% Of The State’s Energy Demand. “North Carolina is no stranger to data centers. There are about 100 in the state that account for up to 3% of the state's energy demand. That demand is expected to more than double by 2030, as the market for larger facilities grows to accommodate these rapidly evolving technologies, according to data from the Electric Power Research Institute. ‘(Up until now) most of the new data centers (were) built … for storing grandma's pictures at some level,’ said Rob Cox, a UNC Charlotte energy expert. ‘It's just beginning now to shift into that AI phase.’” [WUNC News, 4/10/26]

Demand For Data Centers Was Projected To More Than Double By 2030 To Accommodate The Market For Larger Data Center Facilities. “North Carolina is no stranger to data centers. There are about 100 in the state that account for up to 3% of the state's energy demand. That demand is expected to more than double by 2030, as the market for larger facilities grows to accommodate these rapidly evolving technologies, according to data from the Electric Power Research Institute. ‘(Up until now) most of the new data centers (were) built … for storing grandma's pictures at some level,’ said Rob Cox, a UNC Charlotte energy expert. ‘It's just beginning now to shift into that AI phase.’” [WUNC News, 4/10/26]

More Than 20 New Data Center Projects In North Carolina Had Been Announced Since The Start Of 2025 As A Result Of Surging Demands From The AI Industry. “Data centers themselves are nothing new — they’ve been around for as long as electronic computers have existed, going back to the 1940s. However, the rapid growth of artificial intelligence has driven demand for more data centers with enhanced computing power and data storage capacity. At least 93 data centers are currently operating in North Carolina, some of them more than a decade old. But a recent surge in demand driven largely by the AI industry has led to the announcement of more than 20 new data center projects for North Carolina since the start of 2025. Although some places have welcomed data centers as drivers of economic growth, others say they need more time to consider the potential downsides. Some projects that were already underway have encountered intense opposition from residents, prompting local leaders to rethink their current policies.” [Carolina Coast Online, 6/11/26]

2026: Amazon Planned To Build A $10 Billion Data Center Campus In Richmond County, North Carolina. “When Richmond County began marketing one of the largest industrial sites in North Carolina, nearly 50 companies expressed interest. County leaders say they considered advanced manufacturers, heavy industry and data centers before deciding Amazon's planned $10 billion campus was the best fit. That decision stands in contrast to a growing backlash elsewhere in the state. More than 30 North Carolina communities have adopted moratoriums or zoning restrictions on data centers as residents raise concerns about water use, electricity demand, noise and quality of life. Richmond County reached a different conclusion. ‘We had the unique opportunity to evaluate multiple projects,’ said Martie Butler, Richmond County's management analyst and economic developer. ‘In the end, we felt that Amazon was the best fit for our community.’ The project, announced last summer, is expected to be built in phases over several years. The first data center building is projected to become operational in 2027, with additional facilities planned through 2029.” [WRAL News, 7/20/26]