Duke Energy Proposes New Gas and Coal Plants for Data Centers

Duke Energy released a long-range energy plan proposing the construction of two new gas plants and the extension of coal plant operations to meet projected demand from data centers. The utility reports 8,000 megawatts of demand from 43 large load customers in advanced development, with another 6,000 megawatts in an earlier-stage pipeline, although no signed contracts exist for the latter.

The proposal has drawn criticism from the Sierra Club, which is urging the Public Service Commission of South Carolina to implement consumer protection guardrails and large load tariffs. The organization argues that residential and small business customers should not bear the costs of infrastructure built for large corporate data centers, particularly as residential and retail energy demand trends decline.

Conversely, the South Carolina Economic Developers' Association argues that data centers can modernize the state's energy grid and lower utility rates for all customers. Supporters highlight that these facilities bring significant capital investment and high-skilled jobs, citing 2025 recruitment results where two data centers committed $4.9 billion in investment without state incentives. They further contend that such growth is critical to national security and the goals of the U.S. government's AI Action Plan.