As Duke Energy deliberates on its carbon and resource plan, concerns about the impact of energy-hungry data centers have surfaced among its customers. These apprehensions were expressed during a public hearing, where customers voiced their unease regarding the utility’s recent call for energy conservation.
Raleigh resident Amelia Covington articulated her worries, stating, “If this plan is approved, I worry that household customers doing what we can to cut costs and conserve energy will be stuck paying the bill for energy-intensive data centers and gas plants.”
In response, Duke Energy highlighted the potential advantages of data centers. According to spokesperson Bill Norton, these facilities could potentially reduce monthly bills for all customers by distributing “fixed system costs” across a broader base of energy sales. “When you’re spreading fixed costs over a wider customer base, it can drive costs down over time,” Norton explained.
Although Duke Energy does not use a standard tariff for large entities like data centers, the utility shared with WFAE its general contract terms for significant load customers. These include minimum contract lengths, early termination fees, and mandatory monthly payments to ensure data centers contribute equitably. However, specific contracts remain confidential, leaving public incentives undisclosed.
Norton acknowledged the need for transparency, admitting, “We fully agree that that’s something that we need to be transparent about. At the same time, we can’t talk about an individual customer’s contract details.”
Durham County’s sustainability manager, Tobin Freid, has called for “greater transparency” regarding Duke’s methods for accounting future load growth from data centers. Freid also requested regular updates on the status of upcoming facilities, emphasizing the importance of planning as the deadline for carbon neutrality by 2050 approaches.
Pablo Friedman, a Durham resident, echoed similar concerns about resource allocation. Referring to a recent conservation request from Duke, he questioned, “If we add more data centers, how will that be managed? Where is that power generation coming from?”
Currently, Duke plans to meet new energy demands through natural gas. State regulators have approved the construction of new peaker turbines in Catawba County and combined-cycle turbines in Person County.
Norton emphasized the need for a diversified energy strategy, stating, “At the end of the day, we need to come up with a balance in energy resources. We can’t rely on just solar or just natural gas or just nuclear. We need all of it.”
In the long term, Duke Energy anticipates integrating new nuclear reactors by the mid-to-late 2030s, aiming to provide substantial carbon-free baseload power. Interestingly, wind energy is not part of Duke’s current long-term strategy.
