S.C. lawmakers submit resolution to temporarily halt data center projects

MARION COUNTY, SC (WMBF) - State representatives, including seven from the Grand Strand and Pee Dee, are proposing a temporary moratorium on new data center projects.

H-5286, if passed, would prohibit state, county, and city leaders from giving final approval for data center projects until 2028.

The ban would cover rezoning requests, special use permits, building permits, and economic incentives.

The bill would also create a legal definition of data centers, defining them as a facility used to store, manage, and process digital data, storing computers and networks, as well as equipment for transmitting at least one megawatt of electrical power, with additional stipulations for environmental controls and fire suppression.

The bill in its entirety can be read here.

Data centers have become a contentious topic across South Carolina, including in Marion County, where residents continue to speak out against a proposed facility.

Marion County resident Virginia Woodhouse said she supports the bill and hopes a pause in development will allow more time to research how the facilities impact surrounding areas.

“I really hope that something gets done, and they at least put a pause on it till they can research it and get some real answers for people,” Woodhouse said.

Another resident, Frank, said the proposed project in Marion County could slow down and questioned whether the county is the right location.

“They need to put them somewhere, but in certain locations,” he said. “Maybe two counties can handle it.”

Woodhouse said she is concerned about how a data center could affect utility bills and called on lawmakers to investigate potential impacts before moving forward.

“We can see the effects it’s had on other states and other counties, those high-rising electric bills, the use of water, the noise,” Woodhouse said. “There’s so much to take into consideration about this, and why do we just have to jump into it and get it done in the middle of the night with nobody watching?”

Officials have previously claimed the proposed center’s utility costs will not be shifted to local ratepayers.

Officials with Stream, the company behind the data center, said construction for Phase 1 is expected to break ground sometime this year on Industrial Park Road off Highway 501.

H-5286 was referred to the Committee on Ways and Means for review.

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