SC Regulators, Environmental Group Dispute Siting Act Application for Spartanburg Data Center
South Carolina regulators, an environmental group, and attorneys for the NorthMark and Valara data center are sparring before the Public Service Commission over whether the state's Utility Facility Siting Act applies to the 457-megawatt self-powered facility in Spartanburg. The outcome will determine if the data center must obtain a certificate of environmental compatibility and public convenience and necessity, potentially halting construction. This case could set a precedent for other large self-powered data centers in the state.
Attorneys for the NorthMark and Valara data center in Spartanburg, South Carolina, are engaged in a legal dispute with the Southern Environmental Law Center (SELC) and the state's Office of Regulatory Staff (ORS) before the Public Service Commission (PSC). The core issue is whether the state's Utility Facility Siting Act, which requires facilities generating over 75 megawatts to obtain a certificate of environmental compatibility and public convenience and necessity, applies to Valara's 457-megawatt self-powered data center currently under construction.
Valara's attorney, Andrew D’Antoni, argues that the siting act and the PSC’s authority apply only to public utilities that sell power to the public, not to private companies that generate power solely for their own use. He contended that interpreting the law otherwise would grant the PSC oversight into private corporate decisions and lead to absurd results, as some certificate requirements seem tailored for public-serving facilities. Public Service Commissioner David Britt, who was on the Spartanburg County Council when it approved tax breaks for Valara, was not present for the hearing, after the SELC previously requested his recusal.
Conversely, SELC attorney Frank Holleman asserts that the act broadly defines "person" and "major utility facility" without any explicit caveats that the power must be fed into the grid or sold to customers. He argues that the Legislature could have included such provisions but did not, and that the commission should interpret the law as it is written. ORS staff, including attorney Claire Benge and deputy executive director Ben Mustian, concurred, emphasizing that regulators must adhere to the plain language of the statute.
The PSC's decision is crucial, as it could compel Valara to cease construction until it obtains the required certificate, or risk ORS seeking a court injunction. This unique case could establish a significant regulatory precedent for other large, self-powered data centers considering development in South Carolina.