Proposals for data centers in SC: No lures for new, water reports from all

The South Carolina Senate has introduced a series of budget proposals targeting data center development within the state. State Senator Ed Sutton, D-Charleston, championed a one-year budget item to prohibit the state Department of Commerce and Coordinating Council for Economic Development from granting incentives to new data center projects. Sutton argued that large tech companies like Google and Meta do not require state subsidies to establish operations in South Carolina. In parallel, the Senate approved a measure requiring commercial data centers to report their monthly water usage to the state Department of Environmental Services, a proviso sponsored by State Senator Allen Blackmon, R-Lancaster. Concerns over data centers' strain on energy grids and water resources have fueled legislative efforts. However, Senate Majority Leader Shane Massey indicated that comprehensive data center regulations are unlikely to pass the General Assembly this year due to time constraints, despite ongoing committee work. The Department of Commerce previously awarded incentives for QTS in York County and DC BLOX in Greenville County, though no new state incentives have been granted since February. While county-level incentives, such as fee in lieu of taxes agreements, would remain permissible under Sutton's amendment, other Senate proposals faced setbacks. A measure by State Senator Chip Campsen, R-Charleston, to suspend sales tax exemptions for data centers failed to garner support, and an amendment by State Senator Shane Martin, R-Spartanburg, to prevent data centers from increasing energy demand after permitting was defeated. The proposed budget items still require approval from the House and potentially the Governor.