Spartanburg County residents sue over $3B data center project's minor development classification

News Clip3:27FOX Carolina News·Spartanburg County, SC·7/9/2026

Residents in Spartanburg County, SC, have filed a lawsuit against Valara Holdings and the county over a nearly $3 billion data center project. They argue the project was wrongly classified as a minor development, bypassing necessary public review, and raise significant concerns about water quality and air emissions. A hearing for the lawsuit is scheduled for July 30th.

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Gov: Spartanburg County, South Carolina Environmental Law Center

A legal battle is escalating in Spartanburg County, South Carolina, over a nearly $3 billion data center project by Valara Holdings. Residents, represented by the South Carolina Environmental Law Center, are suing both the county and the company, asserting that the project was improperly classified as a minor development, thereby circumventing the public review process required for major developments.

Lead attorney Frank Holleman highlighted that a $3 billion data center cannot logically be considered a minor development, calling the county's approval a violation of local ordinances designed to protect residents and ensure public decision-making. Resident Nancy Garner expressed fears about potential water contamination and depletion, while Holleman raised concerns about air emissions, including formaldehyde, from the natural gas burning required by the facility. Residents contend that the initial classification allowed the "monster" project to be pushed through.

Public records show Valara initially applied to build over 900,000 square feet as a minor development, which the county approved. Weeks prior, the company filed another application for an additional 400,000 square feet, also under minor development classification. This contrasts with a much smaller 87,000-square-foot Spartan Recycling facility, which was reviewed as a major development, further fueling the residents' arguments that the classification was erroneous. Holleman and Garner believe the county should acknowledge its mistake.

A hearing for the lawsuit is scheduled for July 30th in Columbia. Fox Carolina has sought comments from both Valara Holdings and Spartanburg County regarding the minor development classification but has not yet received a response.