Establishes a moratorium from August 1, 2026, through August 1, 2028, during which no state agency or local government may issue permits, certifications, or approvals for siting a datacenter designed for a load of 100 megawatts or more. (moratorium on permits for datacenters)

Beginning July 1, 2027, a datacenter seeking sales-tax-exempt purchases must obtain and annually renew an exemption certificate, with renewal conditioned on submitting detailed information about the facility, local benefits and incentives, employees, construction costs, and operating expenditures. (must obtain an exemption certificate)

A datacenter that has not begun construction may use a conditional exemption certificate, but must submit the required documentation within 90 days after the taxable year ends; failure to satisfy the requirements makes previously exempt purchases taxable, with interest accruing from the purchase dates. (taxes become due and payable)

Datacenters already sited or under construction when the act becomes effective must provide the required information for the five most recent taxable years in which they claimed the existing sales-tax exemption, creating an additional retroactive reporting burden by December 1, 2026. (five most recent taxable years)

Datacenters may obtain an annual exemption certificate to purchase items that are already eligible for a sales-tax exemption under G.S. 105-164.13. The certificate must be renewed annually and requires submission of specified operational, financial, employment, and expenditure information.

A datacenter that has not begun construction may apply for a conditional exemption certificate, allowing it to make qualifying sales- and-use-tax-exempt purchases during the taxable year before construction starts. The datacenter must submit the required information within 90 days after the taxable year ends; otherwise, the taxes, plus interest from the original purchase date, become due.

The siting moratorium applies only to facilities designed to have a load of 100 megawatts or more, so facilities below that threshold are outside this specific two-year prohibition on siting permits.

The AGO proposes that the tariff take effect January 1, 2027, and apply to both new and existing data center customers, regardless of when they began service or signed an agreement (apply to new and existing data center customers).

If the Commission adopts a general rather than data-center-specific tariff, the AGO proposes applying it to customers with a load of at least 100 MW and a load factor of 80% (a load of 100 MW or more).

Customers covered by the tariff would have to pay its rates, under a new data center rate class; the utilities’ High Load Factor rates are proposed as a starting point (must pay the rates included in the tariff).

The proposed tariff would require a 15-year minimum contract term, a maximum five-year load ramp, and minimum billing demand equal to 75% of contract demand (Minimum contract term 15 years).

Covered customers would have to contribute to utility-run demand-side management programs by not opting out of the annual rider (not opting out of the annual rider).

The AGO proposes requiring customers to pay upfront for distribution and transmission upgrades they cause and incremental generation upgrade costs. Dedicated Facilities and But-For Costs would be paid upfront as nonrefundable contributions in aid of construction; any costs not paid upfront would require liquid collateral or insurance (fully paid up-front by customers).

Covered customers would also pay embedded transmission and distribution charges determined through future rate cases (embedded transmission and distribution charges).

The tariff would include curtailment requirements; the AGO supports allowing relief through a modification or waiver when curtailment could adversely affect critical public health or safety functions (relief from those curtailment requirements).

The AGO proposes allowing tariff modifications or waivers only in limited circumstances and with advance Commission approval (with advance Commission approval).

The tariff would impose notice requirements for load reductions and early termination, along with exit fees or liquidated damages; the filing does not specify their amounts or periods (notice periods, exit fees, and liquidated damages).

The AGO proposes a Safe Harbor proceeding through which customers covered by the large-load tariff could request grandfathering. This is a request, not automatic protection. Customers can request grandfathering

The AGO supports developing a Clean Transition Tariff that could let data centers build, bring, or buy clean generation to serve their demand. The Commission would first need to direct Duke Energy to develop and file the tariff. Build, bring, or buy new generation resources

A Commission-approved electric service agreement could include a limited section tailored to a customer’s operating characteristics, allowing some flexibility without Commission approval of every tailored term. The AGO says the terms must not undermine ratepayer protections. Limited tailoring based on the customer’s unique operating characteristics

Customers could seek relief from tariff curtailment requirements when curtailment might adversely affect critical public health or safety functions associated with their load. Relief would require a modification or waiver. Seek relief from those curtailment requirements

Customers could increase their investment in utility-run demand-side management beyond the standard amount, with the additional investment counted in lieu of an equivalent amount of supply-side resources. The AGO also proposes that customers remain required to contribute to the utility’s programs by not opting out of the annual rider. Increase their investment in DSM programs

Facilities with projected or actual aggregate demand above 20 megawatts are classified as large-load data centers and are subject to the bill's special requirements. Contiguous or adjacent facilities under common ownership or effective control are aggregated when calculating demand.

Electric utilities must obtain Utilities Commission approval for a tariff specifically serving large-load data centers. Beginning January 1, 2028, utilities may not provide electric service to a large-load data center except under an approved tariff.

The special tariff must require large-load data centers to pay the full cost of capital investments and incremental operating expenses needed to serve them, while protecting other customers from rate increases and stranded costs.

The tariff must require a minimum electric-service contract term of at least 10 years.

For at least 10 years after service begins, the customer must take or pay for at least 85% of the maximum electric service it requested.

The tariff must require financial assurance or surety sufficient to protect other ratepayers if a large-load data center closes or uses less electricity than initially requested.

Large-load data centers must give the utility advance notice before any anticipated reduction in electricity demand.

The Utilities Commission may impose other tariff provisions it determines are reasonable and in the public interest.

The bill repeals specified sales-tax provisions and exemptions related to data-center property and services. The repeal applies to sales made on or after January 1, 2027, potentially increasing the cost of acquiring or operating qualifying data-center equipment and property.

Requires each electric public utility to file a dedicated tariff for electric service to large-load data centers, creating a specific framework for connecting and serving facilities with projected aggregate demand above 20 megawatts. The Utilities Commission may approve tiered rates, terms, or conditions based on load requirements or cost of service. The benefit is limited by Commission approval and significant customer obligations, including a minimum 10-year contract, payment for at least 85% of requested demand for at least 10 years, financial assurance, and advance notice of expected demand reductions.

Before approving a rezoning, special exception, conditional or special-use permit, or building permit for a new data center with peak monthly demand of at least 100 megawatts, a local government must require a site assessment addressing sound impacts on residences and schools within 500 feet of the property boundary.

Applicants for covered data centers must attest that the facility will use closed-loop or liquid cooling designed to minimize cooling-water consumption.

The Department of Environmental Quality must adopt water-use standards for covered data centers; the standards may require closed-loop or reclaimed water systems and may not permit evaporative cooling systems.

An adversarial nation—China, Iran, North Korea, or Russia—may not purchase, lease, or hold an interest in land on which a covered data center is located or have a significant interest in or substantial control of the data center.

A prohibited foreign party generally may not acquire or hold more than a de minimis direct interest in covered data-center land or a significant interest in or substantial control of a covered data center, subject to exceptions including certain CFIUS determinations or agreements and the resident-alien exception.

A prohibited foreign party that acquired covered land or a covered data-center interest before the section's effective date may retain it but may not acquire additional covered interests and must register with the Secretary of State and Attorney General in a public database.

A prohibited foreign party that acquires covered land or a significant data-center interest after the effective date through devise, descent, enforcement of a security interest, or debt collection must divest within three years.

A buyer acquiring an interest in land on which a covered data center is located must provide an affidavit, signed under penalty of perjury, stating that the buyer is not a prohibited foreign party and complies with the restrictions; the affidavit must accompany the deed or conveyance document.

Late registration by a prohibited foreign party carries a civil penalty of at least $1,000 per day, and unpaid penalties may become a lien against the covered land.

The Attorney General may enforce prohibited-ownership violations through receivership and sale of the property; no sale proceeds may be distributed to the prohibited foreign party, and excess proceeds are forfeited.

Knowingly selling covered land in violation of the foreign-ownership restrictions, or knowingly aiding such a sale, is a Class 2 misdemeanor, subject to the resident-alien affirmative defense.

Every covered data center must enter into an electric-service contract with its public utility containing minimum billing requirements, a term long enough to recover incremental utility costs, performance and credit protections, and termination protections for other customers.

Each covered data-center electric-service contract must be filed with the Utilities Commission within 30 days after execution; portions may be confidential only as allowed by law.

Eminent domain may not be used to acquire land for siting a covered data center.

Local governments are prohibited from providing economic-development incentives for siting a covered data center in their jurisdictions, although agreements executed before the effective date are preserved.

The Department of Environmental Quality must create a voluntary express-review program for all Department permits, authorizations, and certifications required for projects involving the generation, distribution, or transmission of energy or fuel, including electricity. This can provide a faster permitting path for energy infrastructure serving data centers, subject to payment of applicable fees. create an express review program

The express-review program may also be used for pending energy or fuel project applications, and DEQ must notify applicants with pending applications of the option to use the program upon payment of the applicable fee. pending applications through the program

A previously approved data-center site seeking an expansion or modification is exempt from the new site-assessment requirement when the expansion does not add 100 megawatts or more of monthly electrical demand. such expansion does not exceed an additional monthly electrical demand of 100 megawatts or more

The data-center ownership restrictions do not apply to an entity that has received a CFIUS determination that it has no unresolved national-security concerns, has a valid CFIUS national-security agreement, or is a U.S.-domiciled subsidiary of such an entity. has received a determination from the Committee of Foreign Investment in the United States

A prohibited foreign party that is a U.S. resident alien may acquire and hold covered land or a significant interest in or substantial control of a data center on the same terms as a U.S. citizen while residing in North Carolina. upon the same terms as a citizen of the United States

Foreign parties that already owned covered land or data-center interests before the ownership restrictions take effect may continue holding those interests, although they may not acquire additional covered interests and must register with the Secretary of State and Attorney General. may continue to own or hold that interest

A violation by a former owner or another former interest holder does not invalidate title to covered land or subject it to divestiture, protecting later owners and transactions involving the property. Title to land described in subsection (a) of this section is not invalid

Failure to obtain or maintain the required buyer affidavit does not affect the property's title or title insurability, unless the person or entity is independently violating the ownership restrictions or knowingly facilitating a violation. shall not affect the title or insurability of the title

The Utilities Commission may delay the authorized carbon-reduction schedule by up to two years, with additional flexibility when needed for nuclear or wind construction or to maintain grid adequacy and reliability. This can preserve electricity-supply flexibility for data-center operations, subject to the statutory conditions. necessary to maintain the adequacy and reliability of the existing grid

The Commission may not authorize retirement of a baseload or dispatchable generating facility above 100 megawatts until a utility has received approval to construct at least one 1,000-megawatt nuclear facility, supporting continued availability of large-scale dispatchable generation. shall not authorize retirement of baseload facilities

Before beginning construction on any new data center, the owner or operator must submit a preconstruction disclosure statement to the Utilities Commission, the Department of Environmental Quality, and each affected local government, including projected electricity demand and consumption, projected water use, cooling technology, and planned on-site clean generation.

A data center is treated as one facility for regulatory thresholds when facilities are under common ownership or control or are operationally or contractually integrated, even if they occupy multiple parcels.

A data center is classified as a large data center if its projected peak electricity demand is at least 40 megawatts or its projected annual water consumption exceeds one billion liters.

A large data center may not begin construction or operation without applying for and obtaining a certificate of operation from the Utilities Commission. The Commission may require notice, an opportunity for interested parties to be heard, and proof that the applicant is fit, capable, and financially able to comply with the law.

To obtain and retain a certificate of operation, a large data center must satisfy requirements concerning on-site clean generation, water-use standards, electricity rates, water and sewer rates, protection of other customers from increased costs, and any additional public-interest conditions imposed by the Commission.

The Utilities Commission may review, suspend, or revoke a large data center’s certificate of operation after notice and a hearing if the facility is not complying with the law.

A large data center must install operational on-site clean-generation capacity equal to at least 25% of its projected peak electricity demand before beginning commercial operations. Off-site renewable-energy credits, virtual power-purchase agreements, and similar instruments cannot satisfy this requirement.

The Utilities Commission may increase the minimum on-site clean-generation percentage if it finds that additional generation is needed for grid reliability, to protect other customers from rate increases, and is consistent with the public interest.

A variance from the on-site clean-generation requirement is available only if strict compliance is technologically infeasible and the data center implements equivalent grid-mitigation measures at its own expense.

The Department of Environmental Quality must establish water-use standards for regulated data centers, requiring closed-loop or reclaimed-water systems to the maximum extent practicable.

Water-use standards may not permit a data center to use an evaporative cooling system, defined as a system that consumes water through evaporation as its primary heat-rejection method.

Large data centers must pay electric-service rates designed to recover the electric utility’s full cost of serving them, including incremental generation, transmission, distribution, substation, and other infrastructure costs, without shifting those costs or stranded-cost risks to other retail customers.

The Utilities Commission must require a large data center to use a special high-capacity electric rate when ordinary approved rates would not recover the utility’s full marginal cost of serving the facility. The utility and data center must negotiate a Commission-approved agreement covering the necessary prices, terms, and conditions.

Large data centers must pay water and sewer rates commensurate with the full marginal cost of providing service, including incremental costs to construct or expand water and wastewater systems.

Beginning January 1, 2029, an electric public utility may not provide service to a large data center unless the service is provided under a Utilities Commission-approved rate schedule or special high-capacity rate.

An application for a large-data-center certificate of operation is subject to a $250 fee.

Data centers are ineligible for infrastructure grants and other incentives funded directly or indirectly by utility ratepayers.

Local governments may not provide data centers with local tax incentives, subsidies, or financial assistance, including property-tax abatements, deferrals, rebates, grants, or payments in lieu of taxes. Generally available services or infrastructure offered on the same terms as to similarly situated commercial or industrial users remain allowed.

Data centers are ineligible for grants, loans, or other incentives provided under Article 10 of Chapter 143B, including specified state economic-development programs.

The state’s definition of eligible information-technology services for the Industrial Development Fund excludes operation of data centers, preventing data-center operations from qualifying under that category.

The sales-tax exemptions identified in the bill for data centers are repealed for sales made on or after January 1, 2027, increasing the cost of qualifying purchases.

Each large data center must file a public annual report with the Utilities Commission and the Department of Environmental Quality stating its electricity consumption, water use, on-site electricity generation, cooling-system efficiency, and any additional requested compliance information.

The Utilities Commission may grant a variance from the requirement that a large data center install on-site clean generation equal to at least 25% of projected peak demand if strict compliance is technologically infeasible and the data center funds equivalent grid-mitigation measures. The Commission may grant a variance under those conditions.

Local governments may provide data centers with generally available services or infrastructure on the same terms offered to similarly situated commercial or industrial users, although local tax incentives, subsidies, and special financial assistance are prohibited. Generally available services or infrastructure are expressly permitted.

Electric utilities may use tiered rate schedules with different prices, terms, or conditions for different classes of large data centers based on load requirements or other cost-related factors. The rates must still make data centers responsible for necessary capital and operating costs and protect other customers from rate increases and stranded-cost risk. The Commission may approve a tiered rate schedule.

If ordinary approved rates would not cover a large data center's full marginal service costs, the Commission must require a special high-capacity rate, and the utility must negotiate in good faith with the data center over an approved service agreement. An electric public utility shall negotiate in good faith, subject to Commission approval and full-cost compensation.