Public Service Commission sides with Spartanburg data center, says it won't regulate NorthMark
The South Carolina Public Service Commission ruled that the 457-megawatt NorthMark data center, through its subsidiary Valara, is not subject to the state's Utility Facility Siting Environmental Protection Act. This decision means the facility will not face state regulation for its on-site power generation because it will not export power to the public grid. The Southern Environmental Law Center (SELC) and the Office of Regulatory Staff had argued for the act's application due to the project's large power generation capacity.
The South Carolina Public Service Commission (PSC) has ruled that the NorthMark data center in Spartanburg will not be subject to the state's Utility Facility Siting Environmental Protection Act. Commissioner Swain Whitfield motioned to side with Valara, a subsidiary of NorthMark, stating that the act does not apply because the 457-megawatt facility will generate power for its own use and not export it to the public electric grid. The vote was unanimous, with Commissioner David Britt recusing himself due to his prior involvement with tax breaks for the data center while on Spartanburg County Council.
The Southern Environmental Law Center (SELC), representing concerned citizens and the Southern Alliance for Clean Energy, had argued that the Siting Act should apply to Valara due to its significant on-site power generation. They contended that the law defines "person" broadly to include entities beyond public utilities. However, attorneys for Valara argued that the act's broader context pertains to public utilities, making its application to private power generators illogical.
The PSC also clarified that only the Office of Regulatory Staff (ORS), not third parties, can initiate enforcement actions under the Siting Act. NorthMark spokeswoman Sarah Knox expressed satisfaction with the ruling, reaffirming the company's commitment to continuing operations in Spartanburg County and complying with applicable regulations. She noted the decision supports businesses generating power for their own use.
SELC senior attorney Kate Mixson criticized the decision, warning of its significant implications for the environment, public health, and the state's electric system as more data centers consider self-generation. The ORS had initially agreed with the SELC's interpretation of the statute's plain language and has separately asked the commission for a general clarification on the Siting Act's scope. The SELC still has the option to ask the PSC to reconsider its decision or appeal to the state's appellate court, potentially leading to a state Supreme Court review.