SC PSC power generation stance creates ‘welcome mat’ for data centers, critics warn
South Carolina's Public Service Commission (PSC) declined to review a natural gas plant for a Spartanburg data center, arguing it's private power. Critics warn this decision sets a precedent for developers to bypass oversight, raising concerns about environmental and community impacts. A lawsuit concerning the project's land development permits is also pending.
South Carolina's Public Service Commission (PSC) unanimously decided against reviewing a 450-megawatt natural gas plant intended for a data center in Spartanburg. The PSC determined that because Valara Holdings, a subsidiary of NorthMark, would privately generate power solely for its own data center, it fell outside the commission's authority to grant a "certificate of environmental compatibility and public convenience and necessity" typically required for major utility facilities.
This decision has drawn criticism from environmental groups, including the Southern Environmental Law Center (SELC) and Southern Alliance for Clean Energy (SACE), as well as local Spartanburg County residents. Frank Holleman, an attorney with SELC, warned that this action creates a "welcome mat" for data center developers to build power plants without adequate state-level oversight regarding their impact on the environment and surrounding communities. The Office of Regulatory Staff (ORS), the state's utility watchdog, also disagreed with the PSC's interpretation, arguing the siting act should apply to private generation.
The $2.8 billion data center project at 4000 Pine Street includes four buildings, a power yard, and 56 natural gas generators and turbines. Valara Holdings has applied for various permits, including synthetic minor air construction permits from the Department of Environmental Services (one of which has been approved) and land development permits from Spartanburg County. The land development permits are currently the subject of a pending lawsuit filed by the same group of Spartanburg County residents who protested the PSC's decision. Additionally, critics contend that Valara sought minor permits to circumvent more extensive public participation requirements. While state lawmakers' efforts to introduce broader data center regulations did not advance this year, a one-year water reporting requirement for data centers was passed in the state's budget.