Residents, environmental group challenge Spartanburg County data Center project before PSC
Residents and an environmental group are challenging a proposed $3 billion Valara Holdings data center in Spartanburg County, South Carolina, before the Public Service Commission. The dispute centers on whether the data center's natural gas-fired power plant requires state regulatory review, despite construction already being underway. A ruling from the commission, expected by September 4, could have significant implications for future data center developments statewide.
Dozens of Upstate South Carolina residents traveled to Columbia to attend a hearing before the South Carolina Public Service Commission (PSC) concerning a proposed $3 billion data center in Spartanburg County. The project, being developed by Valara Holdings, has commenced construction, but a legal challenge asserts it requires additional state review.
The core of the dispute revolves around a natural gas-fired power plant Valara is building to serve the 900,000-square-foot data center campus. The Southern Environmental Law Center (SELC), backed by local residents like Mark Felk who lives near the site, argues that the power facility's size mandates review and approval under South Carolina's Utility Facility Siting and Environmental Protection Act. SELC attorney Frank Holleman expressed concern that a ruling against their position could signal to data centers that they might bypass standard reviews in South Carolina.
Valara Holdings, represented by attorney Andrew D’Antoni, contends that the power plant is a private, isolated facility not connected to the public grid and therefore exempt from these regulations. However, the South Carolina Office of Regulatory Staff sided with the residents and SELC, stating that Valara's interpretation of the statute is misplaced. The PSC has not issued an immediate ruling but expects to vote on the matter by September 4, a decision that could set a precedent for future data center projects across the state, which has seen several counties enact or consider moratoriums on such developments.
Residents reported significant disruptions from the ongoing construction, citing "extreme chaos," dust, soot, and noise.