South Carolina Regulators Debate Approval for Data Center's Private Power Plant
South Carolina utility regulators held a hearing to determine if Valara Holdings needs state approval to build a 450-megawatt natural gas plant for its private data center in Spartanburg County. Residents and environmentalists argue that a certificate is necessary to scrutinize environmental impacts, while Valara contends it doesn't need public oversight for a private power source.
South Carolina's Public Service Commission (PSC) recently held a hearing to address whether Valara Holdings, a data center developer, must obtain state approval for a proposed 450-megawatt natural gas power plant in Spartanburg County. The plant is intended to exclusively power Valara's data center, not public homes or businesses.
Spartanburg residents, under the banner of "Concerned Citizens of Spartanburg County," and the Southern Alliance for Clean Energy urged the PSC to mandate a certificate for the natural gas plant, citing concerns over public oversight and potential environmental impacts. The Office of Regulatory Staff, a state utility watchdog, concurred, arguing that a certificate is essential for a holistic view of the project's statewide impact.
Conversely, Valara Holdings maintained that the PSC lacks jurisdiction because the power generated would not enter the public grid, therefore not falling under public utility scrutiny. Valara's attorneys, including Andrew D'Antoni, highlighted that the company would operate 45 natural gas-fuel generators and 11 natural gas turbines, which are expected to emit pollutants such as particulate matter, carbon monoxide, and nitrogen oxide, according to the state Department of Environmental Services (DES).
DES has granted one of two requested environmental permits for the data center and its accompanying power yard, which is part of a larger $2.8 billion development at 4000 Pine Street, with construction expected through 2028. The PSC did not issue a decision following the hearing, leaving the regulatory fate of the private power plant uncertain. Residents nationwide continue to oppose rapid data center expansion, often citing environmental, energy, and noise concerns.