North Carolina House weighs new bill on data center utility charges

State Rep. Maria Cervania has put forward new legislation that aims to require large-load data centers to assume responsibility for their own utility expenses and protect other customers from any resulting cost increases, as reported by the North Carolina State House.

Designated as HB 1180 and submitted on April 30 during the 2025 regular session, the bill carries the title: ‘Data Center Amendments.’

This overview is based on our review of the actual bill text and includes clarifications to aid understanding of its language.

The bill describes a “large-load data center” as a facility with an actual or expected electric demand over 20 megawatts and requires electric utilities to submit tariffs tailored for serving such facilities. The Utilities Commission would only approve tariffs that ensure these centers pay for their proportional capital and operating costs, and would also safeguard other ratepayers from increases or stranded costs if a data center downsizes or closes. The proposed legislation stipulates contracts of at least 10 years, minimum billing demand requirements, financial security measures, and advance notice for any demand reductions. It also removes certain sales and use tax benefits for data centers starting Jan. 1, 2027. The bulk of the new rules will take effect once enacted, with only those large-load data centers covered under an approved tariff after Jan. 1, 2028.

Cervania is one of three sponsors for this bill and introduced the highest number of proposals (45) in the 2025 regular session.

Legislation in North Carolina must go through a detailed, multi-stage process before becoming law. A legislator initiates the process by filing a bill, which is then assigned to committee. The measure must pass three readings in both legislative chambers. If either chamber makes changes after the other has passed the bill, both must ultimately approve an identical version. When both the House and Senate agree, the bill goes to the governor, who has 10 days (or 30 if the legislature is not in session) to sign, veto, or allow it to become law without action.

For further information about pending bills and legislative measures, visit this resource.

Cervania received her bachelor’s degree from the University of California at Berkeley.

A member of the Democratic Party, Cervania was elected to represent North Carolina’s 41st House district in 2023, succeeding former state representative Gale Adcock.