Duke Energy Reaches Deal to Shield Ratepayers From Data Center Costs

Duke Energy Corp. reached a settlement with state regulators and major technology companies to prevent North Carolina residents and businesses from bearing the costs of expanding power infrastructure for data centers. The agreement establishes a new large-load tariff targeting customers that use at least 50 megawatts 80% of the time, specifically hyperscale facilities used for cloud storage and artificial intelligence.

Under the terms of the deal, large users must provide nonrefundable upfront payments for dedicated grid facilities, including substations, and provide security guarantees for shared upgrades such as transmission lines. These companies are also required to pay for at least 75% of their projected monthly power needs, regardless of their actual usage.

The settlement involves Duke Energy Carolinas, Duke Energy Progress, the North Carolina Public Staff, and technology firms including Amazon, Google, Meta, and Microsoft. The agreement now awaits final approval from the North Carolina Utilities Commission, with a decision expected by mid-November.