Data center settlement proposes long-term contracts and billing rules

CHARLOTTE — A proposed settlement could change how data centers pay for the energy and infrastructure needed to power their operations.

Regulators have raised concerns that data centers could scale back operations or leave before using the amount of electricity they initially expected, potentially leaving other customers to cover the cost of grid upgrades.

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Duke Energy, customer advocates and major data center companies have reached an agreement that would establish new requirements for data center customers.

The proposed rules would include minimum contract terms of 10 to 15 years, minimum billing requirements, and financial penalties for customers that end their agreements early.

The North Carolina Utilities Commission still must approve the settlement before the rules can take effect.

If approved, the new requirements would apply to data center agreements entered into after June 2026.