A new Duke Energy report supports the utility’s predictions about data center growth in the Carolinas, showing that firm projects outnumber more tentative deals for the first time.
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The news comes as state legislators and local governments struggle to update regulations to keep pace with new digital infrastructure.
Duke Energy filed its biannual economic development report on big energy users on Thursday. Most of these prospective customers probably aren’t hyperscale data centers, but the report includes them, as well as many other smaller data centers.
Despite dozens of local governments passing moratoria in the Carolinas, these projects are moving forward — at least in terms of securing electricity for their servers. For the first time since Duke started tracking this data last spring, projects with contracts outnumbered those either in the late-stage pipeline or covered only by a letter agreement. Contracts between Duke Energy and data center developers impose exit fees if a project is canceled, set minimum contract lengths and spell out other terms that make backing out harder for the developer.
Duke’s original forecast is looking more certain
When Duke Energy filed its updated load forecast in fall 2023, the company predicted an unprecedented increase in energy demand over the next 15 years — estimating that the rate of new energy demand would more than double. As a result, the Carolinas would need to overhaul their grid, extend the life of their coal plants and build new natural gas generators. This forecast also became part of the justification for the General Assembly dismantling the state’s 2030 climate target.
One of the biggest questions was whether these power-hungry projects would materialize.
This latest filing supports Duke’s predictions, implying that many of the companies that had signed only tentative agreements last spring have since committed to more binding contracts. It seems increasingly likely that these projects will move forward — and Duke will have to build new infrastructure to power them.
