State commission sides with Spartanburg data center in legal challenge
The South Carolina Public Service Commission unanimously ruled in favor of Valara's data center in Spartanburg, confirming it is not violating the South Carolina Utility Siting Act. This decision follows a legal challenge by the Southern Environmental Law Center. Meanwhile, Spartanburg County Council is set to vote on a proposed one-year data center moratorium.
The South Carolina Public Service Commission has unanimously ruled in favor of the Valara data center, currently under construction in Spartanburg. The commission determined that the project is not in violation of the South Carolina Utility Siting Act and that only the South Carolina Office of Regulatory Staff has the authority to bring enforcement actions under the Act.
This ruling came after the Southern Environmental Law Center (SELC) filed a petition against Valara Holdings, LLC, a subsidiary of NorthMark Strategies. Attorneys for the SELC argued that the project required formal regulatory oversight and violated state law, which mandates a certificate from the Public Service Commission for major utility facilities before construction begins. A spokesperson for NorthMark Strategies expressed satisfaction with the commission's decision.
Sarah Knox of NorthMark affirmed that operations in Spartanburg County would continue, with a focus on compliance with all regulations. The developer also plans tele-town hall events in September and October to engage with the community and address questions about the ongoing construction.
Separately, Spartanburg County Council is scheduled to hold a third and final reading on September 21 for a proposed data center moratorium. If enacted, this moratorium would prevent the approval of any new data center proposals in the area for one year.