South Carolina data center project challenged by environmental group over power plant

A proposed $3 billion data center project by Valera Holdings in Spartanburg County, South Carolina, is at the center of a legal and environmental dispute. The project, which spans over 900,000 square feet, includes a plan for a separate natural gas power plant intended to exclusively supply electricity to the data center. This private power generation is a key point of contention.

Valera Holdings contends that because the power plant would operate as a private facility serving only the data center and would not impact the public electric system, it does not require approval from the Public Service Commission (PSC). However, the South Carolina Environmental Law Center argues that the company is attempting to bypass the state's Utility Facility Siting Act. They assert that due to the significant amount of energy the plant will produce, it falls under the act's purview and requires PSC approval before construction can commence. The Environmental Law Center has expressed concerns that a ruling in Valera's favor could signal to other data center developers that they might not need to undergo the same rigorous review processes as in other states.

The Public Service Commission recently held a hearing on the matter, which saw an unusually high turnout of concerned upstate residents, marking it as the most attended hearing since 2018. While the commission did not issue a final ruling immediately, it has set a deadline of September 4th for a return session to hold a final vote on the controversial project.