Charlotte, NC, February 17, 2026
Duke Energy is making a monumental $103 billion investment to modernize North Carolina’s energy infrastructure amidst soaring demand. This strategy is essential for supporting the state’s economic growth, particularly in Charlotte, as it caters to a rapidly increasing energy need driven by population growth and booming commercial investments, including significant contributions from the data center industry.
Charlotte, NC
Powering Progress: Duke Energy’s $103B Investment Fuels NC’s Economic Surge
As North Carolina experiences an unprecedented surge in energy demand, Duke Energy has launched an expansive, multibillion-dollar capital investment plan. This significant undertaking aims to modernize the state’s energy infrastructure, ensuring a reliable power supply that is crucial for supporting North Carolina’s dynamic economic growth and vibrant business landscape, particularly in key hubs like Charlotte.
The ambitious plan reflects a proactive approach to accommodate the state’s rapid development, driven by both residential expansion and substantial commercial investment. Such large-scale private sector commitment underscores the ongoing vitality of the region and its appeal to innovative enterprises seeking robust infrastructure.
Meeting Unprecedented Demand Across North Carolina
North Carolina is experiencing a period of remarkable economic expansion, which in turn is driving an unprecedented increase in energy demand. Duke Energy has forecasted this demand to grow significantly over the next decade, projecting an increase of 7% compared to forecasts from three years prior.
A substantial portion of this rising demand, approximately one-third, is attributed to population growth and increased electricity usage by existing customers across the Carolinas, influenced by trends such as the adoption of electric vehicles and home electrification. The remaining two-thirds of the demand growth is a direct result of robust economic development. In 2025 alone, companies announced new projects bringing over 25,000 jobs and $19 billion in investments to North Carolina, with a focus on new manufacturing facilities.
Crucially, data centers are projected to drive 75% of this economic development-related demand by 2030. Duke Energy has already secured contracts with data center developers totaling 1.5 gigawatts of new demand, with many of these projects anticipated to come online starting in 2028. The company’s pipeline of potential data center customers has topped 9 gigawatts. This concentrated demand highlights the evolving landscape of the Charlotte NC business environment and the wider state economy, requiring commensurate investment in infrastructure.
Duke Energy’s $103 Billion Capital Investment
In response to this escalating demand, Duke Energy has announced an expanded capital investment plan totaling $103 billion over the next five years. This makes it the largest spending plan on file at any regulated U.S. utility. The utility is currently deploying over $1 billion in capital per month to keep pace with demand, with an acceleration in growth expected in 2027 and 2028 when many new data centers are slated to connect to the grid.
The comprehensive plan focuses on upgrading the electric grid and increasing generation capacity. Over the next five years, Duke Energy expects to deploy 14 gigawatts of new generation and 4.5 gigawatts of battery storage. Recent achievements include the completion of a 100-megawatt battery installation in North Carolina, which is the largest on the Duke Energy system to date. Additionally, construction has begun on four new natural gas turbines in North Carolina, expected to be in service within the next three years. This significant private investment is essential for fostering sustained economic growth and supporting North Carolina entrepreneurs and established businesses alike.
Modernizing the Grid for Enhanced Reliability
A key component of this capital plan is significant investment in grid modernization to boost reliability and efficiency across the state. Duke Energy has made considerable strides in recent years, having tripled the number of North Carolina customers served by self-healing technology since 2022. This advanced technology now serves 75% of customers and has demonstrated its effectiveness by helping to avoid more than 1.1 million customer outages and saving nearly 2.6 million hours of total outage time in North Carolina during the first ten months of 2025.
These grid improvements are vital for ensuring that both large industrial users, such as data centers, and Charlotte small business operations receive uninterrupted power. A reliable electrical grid is foundational to modern commerce, allowing businesses to operate efficiently and confidently, which contributes directly to job creation and continued economic prosperity.
Balancing Energy Sources: The Carbon Plan
Duke Energy’s investment strategy also aligns with North Carolina’s broader energy policy framework. The North Carolina Utilities Commission (NCUC) approved the Consolidated Carbon Plan on November 1, 2024. This plan, mandated by bipartisan state legislation (House Bill 951), requires Duke Energy to reduce carbon emissions by 70% from 2005 levels by 2030 and achieve net-zero emissions by 2050.
The plan outlines several initiatives to achieve these goals, including the retirement of over 8,000 megawatts of coal-fired generating units by 2036. It also involves procuring 3,460 megawatts of new controllable solar generation by 2031 and 1,100 megawatts of battery storage by 2031. Furthermore, the plan includes pursuing 900 megawatts of new natural gas combustion turbine generation by 2030 and 2,720 megawatts of new natural gas combined cycle generation by 2031. While these investments aim to meet carbon reduction targets, there have been discussions from various stakeholders regarding the proposed energy mix, particularly concerning the balance between natural gas and renewable sources.
Rate Adjustments and Economic Considerations
To fund these extensive infrastructure improvements and new power generation facilities, Duke Energy has filed requests with state regulators for revised rates. The utility plans to raise rates in 2027 by up to 14% for some residential customers. Specifically, for Duke Energy Carolinas, the company requests an annual revenue increase of $1 billion, representing a 15% increase, while for Duke Energy Progress, it requests $729 million, a 15.1% increase. For a typical Duke Energy Carolinas residential customer using 1,000 kilowatt-hours per month, monthly bills would increase by $17.22 starting January 1, 2027, with a further increase in 2028. Similarly, Duke Energy Progress customers would see a monthly increase of $23.11 starting January 1, 2027, followed by another increase in 2028. Commercial and industrial customers would also experience average increases.
These rate adjustments are under review by the North Carolina Utilities Commission. While North Carolina had the 18th-lowest electricity rates in 2025, these proposed increases have drawn objections from the North Carolina Attorney General and Governor, highlighting the careful balance between infrastructure investment and customer affordability. Duke Energy suggests that new facilities, such as data centers, could help reduce rates for all customers by spreading fixed fuel costs over a larger customer base.
Conclusion
Duke Energy’s massive capital investment plan represents a critical step in preparing North Carolina’s energy infrastructure for a future of continued growth and innovation. The efforts to modernize the grid, integrate diverse energy sources, and meet the surging demands of a thriving economy are pivotal for sustaining the state’s momentum. As Charlotte NC business and the broader state economy continue to attract significant investment and foster entrepreneurial spirit, a reliable and evolving energy supply remains foundational to their success. Remaining engaged and informed on these developments is key for all residents and businesses invested in North Carolina’s bright future.
Frequently Asked Questions About Duke Energy’s Investment
- What is the total capital investment planned by Duke Energy in North Carolina?
- Duke Energy has announced an expanded capital investment plan totaling $103 billion over the next five years, making it the largest spending plan on file at any regulated U.S. utility.
- What is driving the surge in energy demand in North Carolina?
- The surge in energy demand in North Carolina is driven by population growth, increased electricity use from existing customers (like electric vehicles and home electrification), and robust economic development. Data centers are projected to drive 75% of this economic development-related demand by 2030.
- What are the key components of Duke Energy’s plan to increase generation capacity?
- Key components include deploying 14 gigawatts of new generation and 4.5 gigawatts of battery storage over the next five years. This involves retiring over 8,000 megawatts of coal-fired units by 2036, procuring 3,460 megawatts of new controllable solar generation by 2031, 1,100 megawatts of battery storage by 2031, 900 megawatts of new natural gas combustion turbine generation by 2030, and 2,720 megawatts of new natural gas combined cycle generation by 2031.
- How will Duke Energy’s plan impact electricity rates in North Carolina?
- Duke Energy has filed requests for revised rates, planning to raise rates in 2027 by up to 14% for some residential customers. For a typical Duke Energy Carolinas residential customer using 1,000 kilowatt-hours per month, monthly bills would increase by $17.22 starting January 1, 2027, with a further increase in 2028. For Duke Energy Progress customers, there would be a monthly increase of $23.11 starting January 1, 2027, followed by another increase in 2028.
- What is the North Carolina Carbon Plan?
- The North Carolina Carbon Plan, approved by the North Carolina Utilities Commission on November 1, 2024, is a bipartisan legislative mandate requiring Duke Energy to reduce carbon emissions by 70% from 2005 levels by 2030 and achieve net-zero emissions by 2050.
Key Features of Duke Energy’s North Carolina Energy Plan
| Feature | Detail | Scope |
|---|---|---|
| Total Capital Investment | $103 billion over five years | Nationwide (Largest among U.S. regulated utilities) |
| Forecasted Energy Demand Increase | 7% over next decade (compared to three years prior) | State-level (North Carolina, Carolinas) |
| Demand from Data Centers | Projected to drive 75% of economic development-related demand by 2030 | State-level (North Carolina, Carolinas) |
| New Generation Capacity Goal | 14 gigawatts over next five years | State-level (North Carolina, Carolinas) |
| Battery Storage Deployment Goal | 4.5 gigawatts over next five years | State-level (North Carolina, Carolinas) |
| Coal Retirement Target | Over 8,000 megawatts by 2036 | State-level (North Carolina) |
| New Solar Generation Target | 3,460 megawatts by 2031 | State-level (North Carolina) |
| New Natural Gas Generation Target | 900 MW combustion turbines by 2030; 2,720 MW combined cycle by 2031 | State-level (North Carolina) |
| Carbon Emission Reduction Mandate | 70% from 2005 levels by 2030; net-zero by 2050 | State-level (North Carolina) |
| Proposed Residential Rate Increase (Duke Energy Carolinas) | $17.22/month (1,000 kWh user) starting Jan 1, 2027 (+ additional in 2028) | State-level (North Carolina) |
| Proposed Residential Rate Increase (Duke Energy Progress) | $23.11/month (1,000 kWh user) starting Jan 1, 2027 (+ additional in 2028) | State-level (North Carolina) |
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