Contains whereas clauses.

Enacts new Article 6C, “Data Centers” to GS Chapter 62. Defines three terms. Requires a preconstruction disclosure statement from the owner or operator of a data center to the NC Utilities Commission (Commission), the Department of Environmental Quality (DEQ), and each local government that would have jurisdiction over the data center in new GS 62-129.1, covering the following five specified matters, each supported by clear and credible evidence:  

1. The projected peak electricity demand.
2. The projected annual electricity consumption.
3. The projected annual water consumption.
4. A detailed description of any cooling technologies to be used in the operation of the data center.
5. A detailed description of any on-site clean generation to be used in the operation of the data center.

Requires certification by the Commission for the operation of a large data center (a data center that (i) has a projected peak electricity demand of  megawatts or greater or (ii) has a projected annual water consumption in excess of one billion liters). Provides for an application. Allows the Commission to issue a certificate, after notice and a hearing, upon finding that the applicant is fit, capable, and financially able to operate the large data center in line with new Article 6C. Provides for six requirements that an applicant must establish in order to obtain a large data center certification, including compliance with clean generation and water use standards set forth in the act, that other members of the public will be held harmless and protected from bearing any increased costs as a result of providing electric, water, or sewer services to the large data center, and that the application will operate the large data center in line with any other requirement determined by the Commission to be necessary to protect the public interest.  Provides for certificate review, and adverse action against the certificate after notice and hearing for noncompliance with Article 6C.

Prevents, in GS 62-129.2, a person from operating a large data center without installing sufficient on-site clean generation capacity to offset at least 25% of the data center's projected peak electricity demand. Authorizes the Commission to increase the minimum percentage of on-site clean generation capacity that a large data center must maintain relative to its projected peak demand upon finding that additional on-site clean generation is necessary to maintain the reliability of the electric grid and protect other customers from rate increases and is otherwise consistent with the public interest. Provides for variances, as described.

Requires that each electric public utility file for Commission approval rates for the provision of electric service to large data centers in GS 62-129.3. Authorizes tiered rate schedules. Prevents the Commission from approving a rate schedule unless it makes that the rates are sufficiently designed to ensure: (1) that large data center customers are responsible for the entire cost of any capital investments or incremental operational expenses necessary and (2) that other retail customers are protected from incurring any rate increases or assuming additional described risks as a result of the large data center. Provides for special high-capacity electric rates for large data centers in GS 62-129.4. Excludes data centers from: (1) any infrastructure grants or other incentives funded directly or indirectly by utility ratepayers and (2) local government tax incentives, subsidies, or financial assistance in GS 62-129.5. Clarifies that GS 62-129.5 does not prohibit local governments from exercising zoning or land use authority. Requires each person who owns or operates a large data center to file an annual report to the Commission and DEQ on the matters specified in GS 62-129.6. Specifies that those reports are public records to be made available on the Commission's website.

Authorizes the Commission to adopt rules to implement Article 6C and for verifying the amount of generation capacity maintained by a large data center in accordance with the on-site clean generation requirement in GS 62-129.2.  Adds a $250 application fee for each large data center certificate application.

Directs that the schedule required to be submitted for approval by the Commission must be submitted by the electric public utility no later than July 1, 2028. Effective January 1, 2029, an electric public utility may not provide electric service to a large data center except under the terms of a rate schedule or special high-capacity rate approved by the Commission.

Adds new GS 143-355.5A (concerning water use standards for data centers), requiring DEQ to adopt rules establishing water use standards for data centers regulated under new Article 6C to ensure the protection of surface water and groundwater resources. Requires the water use standards adopted to mandate that data centers employ closed-loop or reclaimed water systems to the maximum extent practicable and to prohibit data centers from using an evaporative cool system. Requires DEQ to adopt temporary and permanent rules.

Effective January 1, 2027, applying to sales made on or after that date, repeals the following provisions: GS 105-164.3(47) (definition of datacenter), 105-164.3(79) (definition of eligible internet datacenter), 105-164.3(201) (definition of qualifying datacenter), 105-164.13(43a)b (computer software pertaining to datacenter exemptions)., 105-164.13(55) (sales tax exemption for described electric sales to datacenters), and 105-164.13(55a) (sales tax exemption for described electric sales to datacenters and datacenter support equipment).

Adds GS 143B-435.2, specifying that data centers as defined by GS 62-129 are ineligible to receive the incentives provided under Article 10 (pertaining to the Department of Commerce) of GS Chapter 143B. Excludes the operation of data centers from the definition of information and technology services in GS 143B-437.01 (industrial development fund utility account).

Makes the following changes to GS 62-133.2(d) (fuel and fuel-related charge adjustments for electric utilities). Directs the Commission to incorporate  in its cost of fuel and fuel-related costs determination under this subsection the experienced  over-recovery or under-recovery of reasonable costs of fuel and fuel-related costs prudently incurred during the test period, (was, costs prudently incurred by the electric public utility) based upon the prudent standards described, in fixing an increment or decrement rider.  Removes language directing that any experienced over-recovery or under-recovery of reasonable fuel and fuel-related costs prudently incurred accrues interest at the commercial paper rate as identified by the Federal Reserve for A2/P2 nonfinancial issuers, or reasonable successor thereto, on a weighted average basis over the applicable time period.

Makes the following changes to GS 62-133.16 (authorizing performance based regulations [PBR]). Requires a PBR application to include, at minimum, one affordability PIM (a performance incentive mechanism that links electric public utility revenue or earnings to measurable reductions in customer energy burdens, arrearages, disconnections, or other affordability outcomes) and one efficiency PIM (a performance incentive mechanism that links electric public utility revenue or earnings to measurable improvements in system efficiency or cost containment, as described). Requires the Commission to take affordability and efficiency PIMS, as described, into account in making a decision on a PBR application. Makes conforming, technical, and organizational changes.  Applies to any rate-making mechanisms filed by an electric public utility on or after the act becomes law.

Appropriates $240,000 from the General Fund to DEQ in recurring funds starting in 2026-27 to be used for the adoption and implementation of water use standards for data centers. Appropriates $500,000 from the General Fund to the Commission in recurring funds starting in 2026-27 to be used for purposes consistent with the act.

Effective July 1, 2026, except as otherwise provided.