As data centers expand, lawmakers look at new regulations
South Carolina lawmakers are preparing legislation to regulate future data center development ahead of the 2027 legislative session. Proposed measures could require closed-loop cooling, public disclosure of projected energy and water use, on-site power generation and restrictions on project locations, while a statewide moratorium appears unlikely.
South Carolina lawmakers are expected to make data center regulation a major issue during the 2027 legislative session. Sen. Tom Davis, R-Beaufort, is drafting legislation that would require closed-loop cooling systems, encourage facilities to generate their own power and establish limits on where data centers can be built.
Sen. Russell Ott, D-Calhoun, said constituents are particularly concerned about transparency and want companies to disclose projected energy and water demands before projects receive approval. The debate follows concerns about grid capacity, water consumption and community involvement, while supporters argue that data centers could bring significant investment and help expand the state’s technology and artificial intelligence sectors.
Although some South Carolina counties have adopted moratoriums on new data center development, lawmakers said a statewide pause is unlikely. The expected legislative discussion will instead focus on energy and water impacts, disclosure requirements and a statewide framework for local governments to evaluate projects.