North Carolina Attorney General Jeff Jackson filed a statement on September 14 urging the North Carolina Utilities Commission to create a distinct rate class for data centers. The filing marks a shift from Jackson’s May testimony, in which his office supported a broader large-load tariff framework. Jackson now argues that Duke Energy’s current proposals fail to adequately shield residential and commercial customers from the costs associated with rapid data center expansion.
What it means
The attorney general’s office contends that Duke Energy is onboarding an unprecedented volume of data centers without a transparent plan to prevent cost-shifting to other ratepayers. According to the NCUC Public Staff, Duke signed electric service agreements for 6.7 gigawatts of new load from large customers in the Carolinas between March 2024 and April 2026. An additional 7.9 gigawatts of potential capacity remains in advanced development stages.
Jackson’s filing opposes allowing data centers to customize letter agreements or choose rates, signaling support for a dedicated tariff structure instead. He acknowledged that any specific tariff must withstand legal challenges under state law prohibiting unreasonable rate differences. “The prohibition against discriminatory ratemaking should be top of mind as the commission moves forward,” Jackson said.
Duke Energy spokesperson Craig Wilson defended the utility’s position, stating that large load customers are already covering their service costs. “Data centers and other large load customers must pay the costs required to serve them,” Wilson said. Duke noted there is no definitive evidence that existing rates fail to capture these costs and alluded to potential discriminatory concerns regarding separate tariffs. The utility also referenced its participation in the Trump administration’s Ratepayer Protection Pledge.
Amazon Data Services, which is building a $10 billion complex in south-central North Carolina, opposed tariffs that single out data centers. Amazon argued that such measures could be discriminatory against manufacturing customers with similar load characteristics and suggested that a tariff overlay offers more flexibility than a dedicated rate class. The NCUC panel previously sought feedback on a model data center rate schedule in August. A case regarding Duke’s rate increase request began in November 2025.
Legislative action is also pending. The North Carolina House of Representatives passed a bill in June requiring data centers with at least 100 megawatts of monthly peak demand to pay for grid upgrades without shifting costs to other ratepayers. The state Senate has not taken up the measure, and it is unlikely to do so before late November. Jackson’s filing noted that Oregon already mandates a data center-specific tariff.
Key facts
- North Carolina Attorney General Jeff Jackson urged creation of a separate data center rate class on September 14.
- Duke Energy signed agreements for 6.7 GW of new large-load capacity in the Carolinas between March 2024 and April 2026.
- An additional 7.9 GW of potential large-load capacity is in advanced development stages.
- The NCUC Public Staff reported these load figures during proceedings that began in November 2025.
- Amazon Data Services is constructing a $10 billion data center complex in south-central North Carolina.
- The North Carolina House passed a bill in June requiring data centers with 100 MW+ monthly peak demand to cover grid upgrade costs.
- The state Senate has not taken up the measure; action is unlikely before late November.
- Duke Energy signed the Trump administration’s Ratepayer Protection Pledge.
Source: North Carolina Attorney General Jeff Jackson filing