Duke Energy Shields North Carolina Customers from Data Center Costs

The agreement, which includes the U.S. Department of Defense and the North Carolina Public Staff, formalizes a framework requiring data centers to pay upfront for dedicated grid facilities, such as local substations. Under the terms, any new large-load customer—defined as those requiring 50 megawatts or more with an 80% load factor—must operate under a specific High Load Factor rate schedule. These companies are also now mandated to provide upfront deposits and security guarantees for broader grid upgrades, including transmission lines.

Kendal Bowman, president of Duke Energy North Carolina, stated that the move ensures data centers pay for their own connectivity while shielding existing customers from the costs of rapid industrial growth. The proposal awaits approval from the North Carolina Utilities Commission, with a decision anticipated by mid-November. If finalized, the regulations will apply to all electric service agreements signed after June 1, 2026, building upon previous protections already in place for smaller-scale projects.