South Carolina Lawmakers Prepare for Data Center Debate in 2027

South Carolina lawmakers are preparing for a major debate over data center development during the 2027 legislative session, as concerns grow about the facilities’ effects on electricity demand, water resources and community involvement.

Supporters say data centers bring billions of dollars in investment and strengthen the state’s position in technology and artificial intelligence. Critics argue communities need more information about proposed projects and their potential environmental and infrastructure impacts.

Sen. Tom Davis, R-Beaufort, is drafting legislation that would establish new requirements for future data centers. His proposal would mandate closed-loop cooling systems that recycle water, encourage companies to generate their own electricity and restrict where facilities can be built.

Davis said local governments would remain central to approval decisions, but state-level guidelines could help communities make informed choices.

Sen. Russell Ott, D-Calhoun, identified transparency as a major concern among residents. He said lawmakers could consider requiring companies to disclose projected energy and water consumption before projects receive approval.

Although some counties have imposed moratoriums on new data center development, a statewide pause appears unlikely, according to lawmakers.

Instead, the upcoming debate is expected to focus on managing energy demand, conserving water, improving public disclosure and determining how local communities can participate in decisions.

Despite differences over potential regulations, Davis and Ott agree South Carolina needs policies that balance economic investment with protecting residents and local resources as data center development expands across the state.