Spartanburg County data center lawsuit: Residents say $2.8B project was wrongly classified as ‘minor’ development

Residents of Spartanburg County, South Carolina, represented by the South Carolina Environmental Law Center, have filed a lawsuit against Spartanburg County and Valara Holdings LLC. They allege that the nearly $3 billion data center project under construction on South Pine Street was improperly classified as a "minor land development," thereby circumventing a crucial public review process mandated for major developments under the county's Unified Land Management Ordinance.

Lead attorney Frank Holloman emphasized that classifying a project as minor bypasses public oversight, including planning commission reviews, public meetings, and votes. He pointed out that Valara Holdings submitted two applications for the project, both approved as minor developments by the county, despite the massive scale of the data center, which includes 905,000 square feet in its first phase and an additional 494,000 square feet with a power yard and cooling systems in Phase II.

Residents, like Nancy Garner, express significant concerns, particularly regarding the project's potential impact on the local water supply and air quality. Holloman noted that plans include a utility-scale natural gas power plant, raising worries about emissions, including formaldehyde and particulate matter, which are linked to serious health issues. The South Carolina Environmental Law Center has also separately asked the S.C. Public Service Commission to review the suitability of the Pine Street site for the proposed power plant.

Spartanburg County declined to comment on the pending litigation, stating its position would be presented in court filings. Valara Holdings LLC had not responded to requests for comment. A hearing for the lawsuit is scheduled for July 30 in Columbia.