House Bill 1180 would create a new regulatory framework for electric service to large-load data centers in North Carolina and make related tax-law changes. The bill defines a “large-load data center” as a facility primarily used for storing, managing, and processing digital data that is projected to demand more than 20 megawatts, and it treats contiguous or commonly controlled sites as a single facility for that threshold. It then requires each electric public utility to file a tariff with the Utilities Commission specifically for serving these customers, with the Commission authorized to approve tiered rates and conditions based on load or other cost-of-service factors.
The tariff requirements are designed to shift the full cost of serving large-load data centers onto those customers rather than other ratepayers. Utilities would have to include provisions ensuring the data center customer pays for capital investments and incremental operating costs, and that other customers are protected from rate increases or stranded costs if the data center reduces load or stops operating. The bill also requires a minimum 10-year contract term, an 85% take-or-pay billing demand requirement for at least 10 years, financial assurance or surety, advance notice before demand reductions, and any other conditions the Commission finds reasonable and in the public interest. Beginning January 1, 2028, utilities could not serve a large-load data center except under an approved tariff.
On the tax side, the bill repeals several sales tax definitions and exemptions in Chapter 105 of the General Statutes, with those changes taking effect January 1, 2027 and applying to sales made on or after that date. The bill text provided does not specify the practical effect of each repealed provision, but the repeal indicates a restructuring of sales tax treatment connected to data center-related transactions or equipment.
The overall sentiment reflected in the bill text is protective and pro-regulation rather than oppositional: the measure is framed as a way to accommodate data center growth while shielding ordinary electric customers from cost shifts. There is no committee transcript or recorded vote history provided, so there is no direct evidence of support or opposition from legislators, utilities, data center interests, or consumer advocates in the materials supplied.
The main point of contention suggested by the bill is cost allocation. The bill places the financial burden of new infrastructure, operating costs, and potential stranded costs squarely on large-load data center customers, which would likely be welcomed by consumer advocates and utilities concerned about ratepayer protection, but could be viewed by data center developers as restrictive or costly. The 10-year commitment, 85% take-or-pay requirement, and surety provisions are especially significant because they limit customer flexibility and reduce the risk that other utility customers subsidize large new loads.
The bill would amend Chapter 62 of the General Statutes to add a new tariff regime for electric service to large-load data centers and to require Utilities Commission oversight before utilities can serve those facilities under the new framework. It would also repeal several provisions in Chapter 105 related to sales tax definitions and exemptions, with those tax changes effective January 1, 2027, while the electric tariff requirements would take effect immediately upon enactment and become mandatory for service to large-load data centers by January 1, 2028.
The bill’s structure suggests a generally favorable view toward data center development, but only on terms that protect existing utility customers from bearing the costs. Because no committee discussion or votes are provided, there is no recorded public sentiment in the materials beyond the bill’s own policy design, which emphasizes ratepayer protection, cost recovery, and utility planning certainty.
The central issue is who pays for the infrastructure and service costs associated with very large data centers. The bill requires those customers to cover capital and operating costs, accept long-term contractual obligations, and provide financial assurance, which likely aligns with utility and consumer protection concerns but may be contested by data center operators seeking more flexible or lower-cost service. The tax repeals may also be contentious if they alter existing exemptions or incentives tied to data center equipment or operations, though the specific affected tax benefits are not described in the provided text.