SC utility regulators side with data center, won’t require approval for gas plant

The South Carolina Public Service Commission (PSC) unanimously decided that Valara Holdings, a data center developer, will not require PSC approval for its planned 450-megawatt natural gas plant in Spartanburg County. This ruling goes against the recommendation of the state's Office of Regulatory Staff and dismisses a petition filed by the "Concerned Citizens of Spartanburg County" and the Southern Alliance for Clean Energy.

Residents and the environmental group argued that requiring a certificate from the PSC would ensure public scrutiny of the project's environmental impact. However, Valara Holdings contended that since the plant will only power its own data center and not generate electricity for public consumption, it should be exempt from PSC oversight. The PSC sided with the developer.

Valara Holdings plans to operate 45 natural gas-fuel generators and 11 natural gas turbines to power its $2.8 billion data center project at 4000 Pine Street. The development, which includes four buildings, a power yard, and associated infrastructure, is slated for construction through 2028. The State Department of Environmental Services has already granted the first of two required environmental permits.

Kate Mixson, an attorney for the South Environmental Law Center, which represented the Spartanburg residents, criticized the PSC's decision, stating it sets a precedent that allows private companies to bypass state siting laws. While the PSC has yet to issue a final order on the decision, the data center development permits with Spartanburg County are reportedly the subject of a separate lawsuit.