NC Regulators Block Amazon-Linked Gas Plant Amid Ratepayer Concerns
Republican regulators in North Carolina have dealt a significant blow to Amazon's plans for a massive data center campus near Charlotte. The state's largest utility, Duke Energy, had proposed building a $500 million natural gas plant to power the complex, but its bid was rejected by the GOP-controlled Utilities Commission.
The commission cited Duke's failure to demonstrate how it would protect ordinary ratepayers from bearing the costs of the project, which is tied to Amazon's 21-building data center campus. The utility had signed a voluntary agreement with the White House, known as the Ratepayer Protection Pledge, which ensures that tech companies rather than everyday customers absorb costs tied to AI infrastructure upgrades.
The commission indicated that Duke could reapply for the project if it presents cost recovery mechanisms that align with the White House's voluntary agreement. The decision reflects growing skepticism among state regulators toward large-scale energy projects built to satisfy the electricity demands of data centers and artificial intelligence operations.