North Carolina Government Energy Report Warns Data-Center Power Demand Could Raise Costs and Reshape Development Across Wake County
New statewide study finds electricity demand could jump up to 60% in 15 years, driven largely by data centers with major implications for infrastructure and utility rates.
Raleigh, NC, Feb. 22, 2026 — As discussions continue around major industrial and technology projects in southern Wake County, a new statewide energy report (document) suggests the most significant impacts may come not from buildings or traffic but from electricity.
The findings come from an interim report (document) released February 15th by the North Carolina Energy Policy Task Force, a state panel created by Gov. Josh Stein through an executive order in August 2025 to study how North Carolina should manage rising electricity demand while keeping power affordable, reliable, and clean.
The task force, co-chaired by state Environmental Quality Secretary Reid Wilson and Rep. Kyle Hall, includes lawmakers, utilities, regulators, industry representatives, universities, and nonprofit organizations. It is expected to continue its work through 2028.
Rapid demand growth drives statewide planning
The report says North Carolina is entering a period of rapid growth in power demand. The utilities project that overall electricity use could rise between 16 percent and 60 percent over the next 15 years, compared with just 7 percent growth over the previous two decades.
Utilities also estimate that electricity demand tied to economic development projects alone could jump from about 1,800 gigawatt-hours in 2026 to between 29,000 and 33,000 gigawatt-hours by 2030. That surge helps explain why state officials say large power users are rapidly reshaping infrastructure planning across North Carolina.
Much of that growth is tied to large industrial users, particularly data centers. Utilities say these facilities account for about 30 percent of proposed projects, but roughly 80 percent of the expected increase in electricity demand.
But the report makes clear the biggest questions are not just about demand. They are about who pays for the infrastructure required to meet it.
Report highlights risk of residents subsidizing large projects
One of the task force’s primary concerns is what it calls the potential for cross-subsidization, where infrastructure built to serve large industrial customers is ultimately paid for by the broader rate base.
If utilities must build new power plants, substations, or transmission lines to serve major facilities, those investments may be incorporated into statewide rates unless regulators require the companies driving demand to cover the costs directly.
The report also notes that infrastructure investments carry risk if they are made too early or if a large customer leaves after construction. In those cases, ratepayers could remain responsible for costs tied to private development.
For residents in growing communities, the finding suggests the long-term financial impact of large projects may depend less on local approvals and more on how regulators structure utility pricing and cost recovery.
Water demand flagged as a growing concern
The report identifies water use as a major consideration tied to large data facilities. Cooling systems can require substantial quantities of water.
State officials say the availability of water resources and how they are allocated could become a policy issue as electricity demand and large-scale industrial development increase.
That concern intersects with broader infrastructure planning, as utilities and local governments must consider both energy and water supply when evaluating future growth.
Emissions progress could stall before improving again
North Carolina has reduced power-sector carbon emissions by about 50 percent since 2005. However, the report warns that rising electricity demand could cause emissions to level off through the mid-2030s before declining again later.
The pause would reflect the need to meet new demand with existing or new generation sources while the transition to cleaner power continues.
For communities weighing new industrial development, the finding highlights the potential environmental trade-offs associated with rapid energy growth.
What this means for southern Wake County
For fast-growing parts of Wake County, the report suggests future development decisions will increasingly hinge on energy supply, infrastructure capacity, and regulatory policy.
Projects may ultimately be shaped not only by zoning or land use considerations but by:
How much electricity do they require
Whether the grid can supply it quickly
How costs are distributed across customers
What additional demands do they place on shared resources such as water
The task force is expected to refine its recommendations over the next year, with a more detailed policy report due in early 2027.
For now, the study suggests that as North Carolina’s economy grows, electricity demand and the policies that govern it may become one of the defining issues shaping development across the region.