Johnson-Hostler introduces North Carolina bill to strengthen data center oversight

State Rep. Monika Johnson-Hostler has unveiled a new measure seeking to establish rules for data centers aimed at safeguarding consumers, preserving water resources and ensuring grid stability, the North Carolina State House reported.

Filed as HB 1063 on April 27 during the 2025 regular session, the bill carries the short title, ‘Ratepayer and Resource Protection Act.’

The summary below is based on the actual bill text and incorporates interpretation for clearer understanding of the key sections.

This legislation would implement a specialized regulatory scheme for large data centers to address protection for utility customers, water supply, and power grid reliability, beginning July 1, 2026. The bill mandates preconstruction disclosures, a required operations certificate, and an on-site clean power capacity covering at least 25% of peak energy use. It sets cost-based charges for electricity, water and sewer services to prevent increased costs for other customers. The measure prohibits evaporative cooling, requires recycled or closed-loop water systems, and calls for annual public reporting on energy and water usage. It eliminates certain sales tax exemptions, blocks state and local data center incentives, accelerates stricter fuel-cost recovery oversight, bolsters performance-based regulatory standards related to efficiency and affordability, and allocates funds to regulatory agencies for the act’s implementation.

Lindsey Prather, one of the four sponsors of the bill, introduced the highest total of 35 measures during the 2025 regular session.

Legislation in North Carolina goes through a multi-step process before becoming law. A legislator begins by filing a bill, which is referred to a committee for deliberation. Each chamber must read the bill three times. If one chamber amends a bill after the other has passed it, both must ultimately agree to the same version. Once both chambers approve an identical bill, it is sent to the governor, who has 10 days (or 30 if the legislature is not in session) to sign, veto, or allow the bill to take effect without signing.

More information about current bills and legislative actions is available here.

Johnson-Hostler earned a BS from Fayetteville State University.

A Democrat, Johnson-Hostler was elected in 2025 to the North Carolina House, representing District 33 and succeeding Rosa Gill.