Data center developer, local SC government skirted public input, residents suit says
Spartanburg County residents have filed a lawsuit against data center developer Valara Holdings and the county government, alleging they sidestepped transparency and public input requirements by applying for minor rather than major land development permits. The group also asked state utility regulators to review the developer's plan to power the facility with 450 megawatts of on-site natural gas generation. Residents express concerns about potential impacts on public input, power bills, and environmental pollution.
A group of Spartanburg County residents, represented by the Southern Environmental Law Center, has filed a lawsuit against data center developer Valara Holdings and the Spartanburg County government. The residents allege that Valara Holdings sought two minor land development permits instead of a major permit, a move they claim circumvented necessary public input and transparency measures for a project of this scale.
Frank Holleman, a senior attorney with the Southern Environmental Law Center, stated that many residents felt uninformed about the project's true scope until later in the process. Unlike minor projects, major land developments in Spartanburg County typically require approval from a public panel. The lawsuit highlights that the development includes four buildings nearing 500,000 square feet. While one minor permit was approved in summer 2025 and a second is pending from April, the Concerned Citizens of Spartanburg County are demanding the developer obtain a major land development permit.
Mark Felk, a resident living near the proposed 4000 Pine Street site, claims he has not understood the full scope of the $2.8 billion project due to the permitting process, which has caused him "significant concern." Officials from NorthMark Strategies, Valara Holdings' parent company, including VP of Real Estate Development Mike Dobeck and Director of External Affairs Sarah Knox, have stated the company properly notified governmental agencies and is working to improve communication with the public.
Separately, the Concerned Citizens of Spartanburg County, along with the Southern Alliance for Clean Energy, have petitioned the South Carolina Public Service Commission to scrutinize Valara Holdings' plan for on-site power generation. The developer intends to use 45 natural gas-fuel generators and 11 natural gas turbines to produce approximately 450 megawatts of electricity, which the organizations argue requires a certificate of environmental compatibility and public convenience and necessity from regulators. State Department of Environmental Services permit applications show the generators and turbines are projected to emit pollutants such as particulate matter, carbon monoxide, and nitrogen oxide.