As data centers expand, SC lawmakers look at new regulations

COLUMBIA, S.C. (WIS) - As data centers continue to emerge as one of the most talked-about issues on South Carolina’s campaign trail, lawmakers are preparing for what could become one of the biggest policy debates of the 2027 legislative session.

Supporters say the facilities bring billions of dollars in investment and help position South Carolina for growth in the technology and artificial intelligence sectors. Critics, however, are raising concerns about their impact on power grids, water resources and how much information communities receive before projects are approved.

“I do think there are solutions to these problems,” said Sen. Tom Davis, R-Beaufort. “People are obviously concerned about data centers, but I think there are reasonable ways to go about controlling and regulating them.”

Davis is drafting legislation aimed at putting new guardrails on future data center development. His proposal would require facilities to use closed-loop cooling systems that recycle water, encourage companies to generate their own power and establish restrictions on where projects can be built.

He said local governments will continue to have a major role in determining whether projects move forward, but believes the state can help provide a framework for decision-making.

“Local government is always going to be where the rubber hits the road,” Davis said. “People want to control their communities, control what comes into their areas, but there are some things we can do on the state level to assist them in making good and informed decisions on behalf of their constituents.”

Across the aisle, Sen. Russell Ott, D-Calhoun, said one of the biggest concerns he hears from constituents is a lack of transparency surrounding proposed projects.

Ott said lawmakers could consider requiring companies to publicly disclose projected energy and water demands before receiving approval.

“That is a huge frustration to people when all of a sudden the deal is done and they get told about it and they aren’t involved in the process,” Ott said. “Their voices aren’t being heard. That’s what I think we’ve got to really work on.”

While lawmakers may differ on specific proposals, both Davis and Ott agree the conversation is no longer about whether data centers are coming to South Carolina. Instead, they say the focus should be on establishing rules that ensure the projects benefit the state while minimizing impacts on residents and local resources.

“It’s a lot that goes into it,” Ott said. “That just shows why it’s so imperative that we really roll up our sleeves, go to work and get the best possible policy that we can for the state of South Carolina.”

Although some counties have adopted moratoriums on new data center development, lawmakers say a statewide pause appears unlikely. Instead, the debate next session is expected to center on energy demand, water consumption, transparency requirements and how South Carolina can continue attracting investment while protecting communities.

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