Data centers are part of solution to energy affordability

North Carolina Rep. Terry Brown of Charlotte.

North Carolina is  once again America’s Top State for Business. When businesses look to move and grow in North Carolina they look at our welcoming business climate but a company they also look at our investments — in our people and our infrastructure. 

A company is only as good as the people that work for it, and North Carolina boasts a skilled work force. But in order to keep business booming we have to continue to make the lives our citizens and workers better. Right now, people across North Carolina are struggling. Rising costs at the grocery store and energy bills that climbed nearly 6% nationwide last year are impacting us all. With that we have to be proactive and think about the future, not just how North Carolinians can work but how business can work for us.   We can’t afford to be complacent. 

There’s been a lot of talk about data centers in the news recently and some have argued that new data centers will automatically make energy more expensive for everyday customers. I’ll admit that I have had my hesitations, but I believe that when you hold reputable companies to high standards and even higher commitments, data centers can help stabilize costs and put downward pressure on energy rates.

We’ve seen this work in other states. In Georgia, utility leaders have credited large customers with allowing them to freeze base rates for three years. In Virginia, the world’s largest hub for data centers, billions in annual tax revenue have generated budget surpluses and even property tax cuts for homeowners. And in South Carolina, large facilities are paying higher costs instead of pushing that cost on tens of thousands of households. Oregon passed a law as well creating a new customer category specifically for data centers to assign energy responsibility equitably. 

The key is responsibility. Data centers are going to continue to move into North Carolina but it’s important that we put in safe guards to protect North Carolina families, our communities and the environment.  Data centers are required to sign long-term contracts, guarantee minimum payments, and cover the infrastructure costs their projects trigger. Many also agree to reduce or shift their power use during peak times, which relieves stress on the grid and helps avoid costly new capacity. Far from pushing bills higher, these steps help spread fixed costs more broadly and fairly.

We also have to address the root drivers of rising energy costs—aging infrastructure, volatile fuel prices, and extreme weather events. Seventy percent of our transmission lines are more than 25 years old. Utilities are being forced to make costly upgrades, and those costs shouldn’t be passed on to consumers. Add in inflationary pressures and billion-dollar damages from hurricanes and wildfires, and it’s no surprise bills are climbing.

It’s no secret that, data centers and artificial intelligence have a large energy demand, but we can take the time now to build new clean energy projects that add supply to the grid. This will also help spread out the fixed costs of running the grid, which means households aren’t carrying those expenses alone. And when new lines or maintenance is needed, it will be the data centers that are required to pay for those upgrades upfront, leaving the grid stronger and more reliable for everyone. That means more investment in energy infrastructure, steadier rates, and a fairer distribution of costs across all customers.

Communities also see direct benefits. Data centers create thousands of good-paying jobs, first in construction and the skilled trades to build the facilities, and then in long-term operations and maintenance once they’re running. And by partnering locally, data centers can help fund community projects, from weatherization upgrades that lower utility bills to resilience hubs that keep schools and community centers open during storms.

Here in North Carolina, the task before us is not to slow growth but to manage it responsibly. That means holding companies accountable for their share of infrastructure costs, prioritizing projects that deliver strong local economic value, and ensuring visible benefits for families – from weatherization upgrades that cut monthly bills to training programs that prepare workers for the clean energy jobs of the future. At the end of the day ensuring that

North Carolina families don’t shoulder the burden of rising energy usage and keep costs down. 

North Carolina has the opportunity to show the rest of the country how to do this right: attract transformative investments, protect ratepayers, and strengthen our grid for the long haul. Data centers are not a threat to affordability, but a part of the solution, if we insist on clear rules and fair contributions.

North Carolina Rep. Terry Brown of Charlotte has represented Mecklenburg County in the North Carolina General Assembly since 2021 and serves as House Chief Democratic Whip.

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