As neighboring SC counties consider restrictions, Lexington remains open to data centers
Lexington County is debating whether to implement restrictions or a moratorium on large-scale data centers, with some council members advocating for proactive rules while others prefer to keep an open mind to potential economic benefits. This discussion comes as neighboring Newberry County enacted a year-long moratorium and Edgefield County considers its own limits on data center impacts. Concerns include high energy and water demands, noise, and land use, with a real estate developer offering a financial analysis of potential tax revenue.
Lexington County, South Carolina, is currently debating its stance on large-scale data center development, with council members divided on whether to enact proactive restrictions or remain open to potential projects. Councilmember Todd Cockrell urged the body to establish operating rules, citing public backlash in Spartanburg County and a recent year-long moratorium passed in neighboring Newberry County, where public outcry led to the denial of a data center land purchase ordinance. Conversely, Councilmember Todd Collum advocates for keeping an "open mind" to gather facts before implementing any "arbitrary, closed-minded" restrictions, emphasizing the potential economic benefits like significant annual revenue from fee-in-lieu-of-tax agreements.
The debate highlights concerns over the extensive resource demands of hyperscale data centers, which can consume hundreds of megawatts of energy and millions of gallons of water daily. While Lexington County currently has a smaller Dominion data center, it lacks hyperscale facilities, though real estate developer Mark Avant is working on six potential data center projects across the state. Avant presented an analysis suggesting a 500-megawatt data center could generate over $61 million annually for Lexington County, noting advancements in insulation, cooling, and backup power to mitigate environmental impacts.
Despite these economic prospects, Cockrell expressed apprehension about the potential strain on South Carolina's energy grid, which has reached maximum capacity during peak seasons, fearing that data center needs could be prioritized over residents' energy use. He also noted that higher land costs in Lexington County, coupled with the unlikelihood of granting significant tax incentives for "energy hog" data centers, might naturally deter such large developments. Meanwhile, Edgefield County is considering ordinances to limit data center noise, water use, and power demand, reflecting a broader trend among South Carolina counties to regulate the rapidly expanding industry.