Residents, environmental group challenge Spartanburg Co. data center project before PSC
Residents and the Southern Environmental Law Center are challenging Valara Holdings' proposed $3 billion data center in Spartanburg County, South Carolina. They argue the accompanying natural gas power plant requires state review under the Utility Facility Siting and Environmental Protection Act, a claim Valara disputes. The South Carolina Public Service Commission is reviewing arguments and will vote by September 4th on whether the project falls under state utility siting requirements.
The South Carolina Public Service Commission (PSC) held a hearing in Columbia concerning a legal challenge against a proposed $3 billion data center by Valara Holdings in Spartanburg County. The hearing, which saw the largest public turnout since 2018, addressed arguments over whether the project, already under construction, must undergo additional state review.
The core of the dispute, supported by local residents like Mark Felk and the Southern Environmental Law Center (SELC), is that Valara is constructing a natural gas-fired power plant to serve the data center without complying with the state's Utility Facility Siting and Environmental Protection Act. SELC attorney Frank Holleman expressed concern that a ruling against additional review could signal to data centers that South Carolina has fewer regulatory hurdles than other states. Residents report extreme chaos, dust, soot, and noise from the rapid development.
Valara Holdings, represented by attorney Andrew D’Antoni, contends that the power plant is a private, islanded facility that will not export power to the public grid and therefore does not impact the system's economy or reliability, exempting it from the Act's requirements. However, the South Carolina Office of Regulatory Staff sided with the residents and SELC, arguing Valara's interpretation of the statute is misplaced.
The PSC did not issue an immediate ruling but has set a September 4 deadline to vote on whether the project is subject to state utility siting requirements. This decision could have significant implications for future data center developments across South Carolina.