Lawsuit over Spartanburg County data center development continues in Columbia
A lawsuit challenging the construction of a 450-megawatt data center by Valara Holdings, LLC in Spartanburg County, South Carolina, is ongoing. A hearing before the Public Service Commission debated whether the facility requires formal regulatory oversight under state law due to its power generation capacity. No decision was made, with commissioners expected to rule by September 4.
A legal dispute concerning a proposed 450-megawatt data center in Spartanburg County, South Carolina, has progressed to a hearing before the Public Service Commission of South Carolina. The lawsuit, filed by the Southern Environmental Law Center (SELC) on behalf of Concerned Citizens of Spartanburg County and the Southern Alliance for Clean Energy, names Valara Holdings, LLC (a NorthMark Strategies subsidiary), Spartanburg County, and the Spartanburg County Administrator as defendants. The core of the argument revolves around whether the data center's planned 450-megawatt onsite gas-fired generation capacity requires a certificate under the state’s Utility Facility Siting and Environmental Protection Act, a process that would involve formal regulatory oversight.
SELC attorney Frank Holleman contended that construction should not proceed without such a certificate, citing a section of the act that mandates a certificate for "major utility facilities" exceeding 75 megawatts. This argument highlights Valara's modification request from an initial 50 megawatts to an additional 400 megawatts of generation.
Conversely, Andrew D’Antoni, legal counsel for Valara Holdings, LLC, argued that the act applies specifically to public utility facilities and not to private self-generation, asserting that the data center's operations will have no public impact and will not export electricity to the public grid. The South Carolina Office of Regulatory Staff, however, supported SELC's interpretation, stating that the law's language is clear regarding facilities with generating capacity over 75 megawatts and a broad definition of "person" that would include Valara.
Despite the four-hour hearing, commissioners did not reach a decision, opting to review arguments and requests from both sides, with a ruling anticipated by September 4. Local residents, many living near the construction site, have voiced significant concerns about the project's size, environmental impacts, and a perceived lack of transparency from Valara Holdings and Spartanburg County. Construction at the data center site is reportedly continuing without interruption amidst the ongoing legal challenge.