South Carolina to Draft New Data Center Regulations
State lawmakers plan to introduce new rules for data center energy and water usage in the 2027 legislative session.
Updated on Oct. 23, 2026 in Data Centers
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South Carolina lawmakers are preparing legislation to impose stricter regulations on data center development across the state. The upcoming 2027 legislative session will feature debates on policies addressing project locations and resource management.
Why it matters
The proposal aims to address growing concerns regarding the strain these facilities place on local power grids and water supplies. Lawmakers are seeking to improve transparency following public frustration over the current project approval process.
Proposed requirements focus on facility infrastructure, mandating closed-loop cooling systems that recycle water. Companies may also be encouraged to generate their own power rather than relying solely on existing infrastructure.
The players
Tom Davis
He is a state senator representing Beaufort who is spearheading the effort to draft new regulatory legislation.
Russell Ott
He is a state senator representing Calhoun who has advocated for mandatory transparency regarding utility demands.
The details
Sen. Tom Davis is currently drafting the legislation, while Sen. Russell Ott has proposed requirements for public disclosure regarding energy and water demands. The measures aim to restrict project locations to mitigate impact on surrounding communities.
Timeline
2027 legislative session is scheduled for upcoming debates on data center policy.
The Tech Race
The proposed legislation mirrors the transparency standards established by the National Environmental Policy Act's environmental impact assessment requirements. These new rules reflect an industry-wide shift toward balancing rapid data center expansion with local resource sustainability.
Residents may see fewer data center projects in their immediate neighborhoods due to proposed location restrictions. The shift toward self-generated power and closed-loop cooling aims to prevent local utilities from reaching capacity limits.
The takeaway
Legislators are attempting to balance technological growth with the protection of essential public utilities like water and electricity. Residents concerned about new developments should monitor the 2027 session to track how these specific disclosure requirements evolve.
What happens next
The debate over data center regulations is set to take place during the 2027 legislative session.
Further reading
For more information on infrastructure policy, visit the Data Centers section.
Live Poll
Should your state government impose stricter regulations on new data center developments in your area?
