PSC weighs $3B data center fight
The South Carolina Public Service Commission is addressing a dispute over whether Valara Holdings' planned 900,000-square-foot data center in Spartanburg County, which will be powered by its own 457-megawatt natural gas plant, requires PSC approval. Environmental groups argue that any major utility facility generating over 75 megawatts needs PSC siting and environmental approval, while Valara contends its private power generation does not constitute a public utility. A final ruling from the commission is expected by September 4.
The South Carolina Public Service Commission (PSC) is currently grappling with a significant question: when does a power utility facility require its approval? This query stems from a planned $3-billion, 900,000-square-foot data center by Valara Holdings in Spartanburg County, which intends to power itself with a 457-megawatt natural gas plant.
The Southern Environmental Law Center, representing environmental and citizens groups, contends that state law mandates PSC siting and environmental approval for any "major utility facility" generating more than 75 megawatts. Conversely, Valara's attorneys argue that a power generation facility only falls under "utility" classification if it sells electricity to the public, a condition they say does not apply to their private, self-generation plant.
Ben Mustian, deputy director of the Office of Regulatory Staff, which represents the public interest, urged commissioners to adhere to the plain language of the statute, implying Valara's interpretation is a legal maneuver to avoid oversight. The commission has indicated it will issue a final ruling on this matter by September 4.