Dillon County
For Dillon County, see South Carolina’s statewide laws and regulations below. No additional county-specific measures are listed in our research.
Mixed Data Center Policies
South Carolina offers qualifying data centers tax breaks, but investment, job, certification, and facility-size conditions limit access, and an enacted rule bars some large facilities from exemptions. A power rate requires customers to cover needed facilities, provide financial security, and accept long-term minimum charges.
Incentives
Tax benefits3
Provides qualifying certified data centers a sales and use tax exemption for computers, equipment, hardware and software and electricity and eligible business property, subject to statutory investment, employment and certification requirements. The exemption also covers replacement equipment and future expansions.
Creates sales-tax exemptions for supplies, technical equipment, machinery and electricity used by internet access and communications service providers, with refunds of state and local sales and use taxes paid on exempt items. These benefits are for qualifying service providers; data centers as defined by the Act cannot claim them.
Would create state income-tax credits for data-center operators locating on qualifying brownfield or remediation sites: 25% of documented remediation costs, capped at $5 million per facility, and a 2% capital-investment credit, capped at $10 million per facility.
Water and electricity
Would require electrical utilities to offer low-income households a percentage-of-income payment plan or other discounted rates, subject to Commission approval. This benefit is for households, not data centers.
current law · StatewideThis enacted statewide provision provides a sales and use tax exemption for qualifying data centers, including specified computers, equipment, hardware, software, electricity used by the data center, and eligible business property.S.C. Code § 12-36-2120(79) — datacenter sales and use tax exemption
What this means
The measure offers substantial tax savings on qualifying data-center equipment and electricity, helping reduce costs to build, expand, and operate eligible data centers. But access depends on meeting investment and job thresholds and receiving state certification, so the benefits are significant but not unconditional requirements.
People behind it
- South Carolina General Assembly
Enacted the statutory provisions comprising the South Carolina Sales and Use Tax Act.
- South Carolina Department of Revenue
Administers and enforces the provisions of the South Carolina Sales and Use Tax Act.
Restrictions & requirementsHide restrictions & requirements8
To qualify for the datacenter sales and use tax exemption, a facility must have concurrently maintainable power and cooling systems, redundant capacity components, and multiple distribution paths serving its computer equipment.
A qualifying datacenter must meet a capital-investment threshold of at least $50 million at one facility over five years, or at least $75 million in aggregate investment by multiple taxpayers over five years.
A qualifying datacenter must create and maintain at least 25 full-time jobs with average cash compensation of at least 150% of the applicable state or county per-capita income, whichever is lower.
The qualifying jobs must be maintained for three consecutive years after the Department of Commerce certifies that the facility has met the required investment and job thresholds.
A taxpayer seeking the datacenter exemption must notify both the Department of Revenue and Department of Commerce before claiming it, obtain Department of Commerce certification, and later report whether the investment and job requirements were met.
If a taxpayer claims the exemption but fails to meet the required investment or job thresholds, the Department of Revenue may assess the state and local sales or use taxes that would otherwise have been due.
If a certified datacenter later fails to maintain the required qualifying jobs, the exemption for computer equipment, hardware, software, and computers is suspended until the job requirement is restored, while the electricity exemption is reduced to a percentage based on the number of qualifying jobs maintained.
The datacenter exemption is limited to facilities certified before January 1, 2032, continues for an additional ten years for facilities certified by December 31, 2031, and is repealed after that additional period.
Benefits & exceptionsHide benefits & exceptions6
Sales and use tax exemption for qualifying data centers: A new or existing South Carolina data center may exempt original or replacement computers, computer equipment, computer hardware and software, electricity used by the data center, and eligible business property used to generate, transform, transmit, distribute, or manage that electricity. The facility must provide hosting or data-processing services, meet specified reliability requirements, invest at least $50 million (or $75 million in aggregate investment by multiple taxpayers), create at least 25 qualifying full-time jobs, maintain those jobs for three years, and obtain Department of Commerce certification. original or replacement computers, computer equipment, and computer hardware and software
Early use of the data-center exemption: After notifying the Department of Revenue and the Department of Commerce and obtaining Commerce certification, a qualifying taxpayer may claim the exemption during the applicable limitations period, including before it has completed the required job-maintenance period. the taxpayer may claim the exemption on eligible purchases
Expansion and replacement protection: Once a data center meets the investment and job requirements, later purchases or investments in computers, computer equipment, hardware, and software—including replacements and future expansions—also qualify for the exemption regardless of when they are made. any subsequent purchase of or investment in computer equipment
Duration of the data-center incentive: The exemption applies to data centers certified before January 1, 2032, and continues for an additional ten years for a taxpayer certified by December 31, 2031. certified by December 31, 2031, for an additional ten year period
Separate technology-intensive-facility tax exemptions may also cover qualifying data-center investments: computer equipment used at a qualifying technology-intensive facility and electricity used by that facility can be exempt, subject to investment, job, compensation, and equipment-composition requirements. computer equipment used in connection with a technology intensive facility
Administrative tax-certification mechanisms: The Department of Revenue may issue exemption certificates allowing qualifying taxpayers to purchase specified machinery, electricity, or raw materials tax-free, while requiring records and shifting liability to the purchaser if an exemption is improperly claimed. Exemption Certificate
Sources
current law · StatewideThis enacted law creates a separate tax exemption for certain internet-access and communications-service providers but expressly excludes qualifying data centers from claiming that exemption or related refund.South Carolina Act 242 of 2026 (H5122)
What this means
The bill bars qualifying data centers from using the tax exemption or refund, which could modestly increase costs for some large facilities. The restriction is limited to data centers meeting the 50-megawatt threshold and other conditions, so it does not broadly prevent building or operating data centers.
People behind it
- B. Newton
Listed as a sponsoring representative of the bill.
- Bannister
Listed as a sponsoring representative of the bill.
- Herbkersman
Listed as a sponsoring representative of the bill.
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- Yow
Added as a sponsoring representative.
- C. Mitchell
Added as a sponsoring representative.
- Rose
Added as a sponsoring representative.
- Cobb-Hunter
Added as a sponsoring representative.
- Lawson
Added as a sponsoring representative.
- Brewer
Added as a sponsoring representative.
- Kirby
Added as a sponsoring representative.
- Ballentine
Added as a sponsoring representative.
- Rutherford
Added as a sponsoring representative.
- Hiott
Added as a sponsoring representative.
- Gagnon
Added as a sponsoring representative.
- Guest
Added as a sponsoring representative.
- M.M. Smith
Added as a sponsoring representative.
- Howard
Added as a sponsoring representative.
- Pope
Added as a sponsoring representative.
- Grant
Added as a sponsoring representative.
- Anderson
Added as a sponsoring representative.
- Schuessler
Added as a sponsoring representative.
- G.M. Smith
Added as a sponsoring representative.
- Caskey
Added as a sponsoring representative.
- Davis
Added as a sponsoring representative.
- Govan
Added as a sponsoring representative.
- South Carolina General Assembly
Enacted the measure as an act of the General Assembly.
- Department of Revenue
Responsible under the measure for processing refund applications and calculating qualifying refund claims.
Restrictions & requirementsHide restrictions & requirements1
Data centers may not claim or use the sales-tax exemption or tax refunds available to internet access and communications service providers, increasing the tax cost of otherwise qualifying supplies, equipment, machinery, and electricity. This applies to facilities with a contractual peak demand of at least 50 megawatts that become customers of an electric service provider after December 31, 2026. Telecommunications-company facilities and facilities primarily supporting telecommunications services or network operations are excluded; temporary usage above 50 megawatts does not qualify a facility if its contractual peak demand is below 50 megawatts.
Sources
current law · StatewideEstablishes an experimental electricity rate schedule for eligible large-load customers, including data facilities with demand above 50,000 kW and mobile data facilities above 1,000 kW.Santee Cooper Experimental Large Load Rate Schedule L-25-LL (2025)
What this means
The schedule makes power available to qualifying data centers, but requires customers to pay the full cost of needed facilities and provide substantial financial security. Its 15-year minimum term, along with large minimum bills, creates significant financial and long-term commitments.
People behind it
- South Carolina Public Service Authority (Santee Cooper)
Adopted and administers the Large Load Service rate schedule.
Restrictions & requirementsHide restrictions & requirements9
Large Load Service is mandatory for customers meeting Schedule L eligibility that operate a data facility with aggregate monthly maximum demand greater than 50,000 kW, or a portable/distributable “Mobile Large Load” data facility with monthly demand greater than 1,000 kW. The Authority may also apply the schedule to other high-demand customers at its discretion. Large Load thresholds
Service requires an initial agreement with a term of at least 180 months. Before the agreement is executed and required assets are constructed or acquired, the customer must pay the Authority’s determined delivery-point and transmission costs, including interconnection, network upgrades, and additional or redundant facilities. Initial term and construction costs
The customer must provide collateral or financial assurances equal to the value of 180 months of minimum bills, including at least 12 months as a cash deposit. The assurances must remain in place while service continues and are recalculated annually; the Authority may require additional assurances for overdue balances. Collateral and financial assurances
Contract-demand reductions are restricted: they cannot take effect before 15 years of service, require at least one year’s advance written notice, and are limited through a five-year phase-down. The minimum contract demand is generally 50,000 kW for Large Loads or 1,000 kW for Mobile Large Loads, subject to the schedule’s stated exceptions. Demand reduction limits
The tariff imposes minimum billing-demand requirements: the firm billing demand factor is 100% for months 1–60, 95% for months 61–120, and 90% thereafter; the coincident-peak billing factor is 50%, 65%, and 80% for those same periods. For a customer taking only Large Load Service, firm billing demand cannot be below 1,000 kW. Minimum billing demand factors
The Authority may establish hourly Peak Pricing Periods at its discretion, subject to limits of 250 hours and 60 days per calendar year, no more than two periods per day or 72 hours per week, and specified daily-hour limits. Customers must respond to notices and obtain agreement to schedule power; usage beyond the amount requested and agreed upon may be priced at 150% of the quoted price, or 150% of the Authority’s estimated incremental cost in the stated circumstance. Peak pricing limits and excess-use price
If a customer exceeds its applicable maximum demand and does not promptly comply with the Authority’s request to reduce usage, the Authority may increase the customer’s contract demand for the current and later billing months and charge for damage to its facilities. The Authority need not supply demand above aggregate contract demand and may completely interrupt service to limit usage. Excess-demand remedies
In addition to the tariff’s customer, demand, coincident-peak, and energy charges, a customer whose service requires facilities beyond or different from those normally provided must pay a monthly facilities maintenance charge equal to 0.1% of those facilities’ original installed cost. Facilities maintenance charge
The experimental schedule is available only through April 24, 2029, at the latest. The Authority may close it to new customers or new delivery points at any time and, unless a customer agreement provides otherwise, may terminate and withdraw the schedule and service to existing customers on 60 days’ prior written notice. Schedule duration and withdrawal
Benefits & exceptionsHide benefits & exceptions5
Eligible data centers can receive dedicated Large Load Service from Santee Cooper. The tariff covers fixed data centers with monthly maximum demand above 50,000 kW and mobile data centers with monthly demand above 1,000 kW; service is subject to the tariff, a service agreement, and the Authority’s conditions.
For up to the first 36 months at a new delivery point, Santee Cooper may adjust contract demand month to month or waive certain excess-demand provisions to allow operations to build up or phase in. This is at the Authority’s discretion and may carry additional conditions.
A customer taking delivery at transmission voltage of 69 kV or greater and providing its own transformation receives a $0.70/kW reduction in the base monthly demand charge.
The customer may request additional power during designated Peak Pricing Periods, subject to Santee Cooper’s agreement and the customer’s response to its notice. These periods are limited to 250 hours and 60 days per calendar year, with additional daily and weekly limits; the quoted price is based on estimated incremental costs plus a margin.
A customer may supply part of its electricity with customer-owned generation if it complies with Santee Cooper’s current interconnection standard.
Sources
failed · StatewideWould establish proposed requirements for South Carolina data centers larger than 5,000 square feet, but H. 4583 remains pending in the House and has not been enacted; it would take effect upon the Governor’s approval.South Carolina H4583 (2025-2026)
What this means
The bill would make data centers much harder to build and run by requiring them to generate all their own power, use closed-loop cooling with no net water withdrawal, and staff at least one full-time on-site employee per 1,000 square feet (energy and operating requirements). It would also bar public subsidies and require at least $50 million in environmental bonding or insurance, creating major costs and barriers.
People behind it
- Rep. Cromer
Listed as a sponsor of H. 4583.
- Rep. Gilreath
Listed as a sponsor of H. 4583.
- Rep. Oremus
Listed as a sponsor of H. 4583.
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- Rep. Chumley
Listed as a sponsor of H. 4583.
- Rep. White
Listed as a sponsor after requesting that their name be added.
- Rep. Reese
Listed as a sponsor after requesting that their name be added.
- Rep. Lawson
Listed as a sponsor after requesting that their name be added.
- Rep. Atkinson
Listed as a sponsor after requesting that their name be added.
- South Carolina House of Representatives
Legislative body in which the bill was introduced and currently resides.
- South Carolina General Assembly
Legislative body identified as enacting the measure.
- Department of Environmental Sciences (SCDES)
Granted enforcement authority over the bill's strict-liability provision.
- Department of Consumer Affairs
Authorized to suspend a data facility's operating permit or shut down the facility for repeated violations.
Restrictions & requirementsHide restrictions & requirements17
Requires every data center to operate with complete energy independence, meaning 100% of its energy demand—including backup power, cooling, and ancillary loads—must be generated on site.
Prohibits a data center from being physically interconnected with, receiving power from, or participating in load-swap, demand-response, or standby agreements with state-funded utilities or any public power grid.
Requires backup generators to be part of the on-site energy system and limits generator fuel deliveries to no more than 10% of annual energy consumption.
Prohibits data centers from receiving direct or indirect state or local taxpayer-funded incentives, grants, tax abatements, subsidies, utility-rate reductions, or infrastructure improvements primarily benefiting the facility, including benefits provided through related entities.
Requires data centers to fully fund all permitting, infrastructure, and operational costs.
Requires a closed-loop water or liquid cooling system that produces zero net water withdrawal and zero wastewater discharge.
Prohibits data centers from extracting groundwater, using municipal water for cooling, or using evaporative or open-loop cooling systems.
Requires annual certification of the closed-loop cooling system, including third-party verification and documentation of water losses, chemical treatment processes, and fluid replacement volumes.
Imposes strict liability on data-center operators for environmental damage and public-health impacts arising directly or indirectly from operations, without requiring proof of negligence.
Prevents operators from transferring, indemnifying, shielding, or assigning that environmental and public-health liability to contractors, shell entities, or special-purpose subsidiaries.
Requires environmental bonding or liability insurance of at least $50 million, or a higher amount established by regulation based on facility size.
Requires at least one full-time, on-site W-2 employee for every 1,000 square feet of facility floor space, with each employee working at least 35 hours per week.
Excludes remote workers, contract workers, temporary workers, staffing-agency employees, and workers employed by another entity from satisfying the required staffing ratio.
Requires qualifying on-site employees to be present during all operational hours, including emergency operations.
Requires operators to submit an annual report by January 1 to the House Speaker, Senate President, and Governor covering energy production and consumption, water-use metrics and closed-loop verification, environmental monitoring, and employment compliance.
Subjects owners who knowingly and willfully violate the chapter to an administrative fine of $1,000 for each violation.
Allows the Department of Consumer Affairs, for repeated violations, to suspend a data facility's operating permit or shut down the facility.
Benefits & exceptionsHide benefits & exceptions2
The energy-independence requirement allows a limited physical or contractual connection to outside systems when required for emergency protection systems.
The facility may use fuel deliveries for generators, provided fuel-based generation does not exceed 10 percent of the facility’s annual energy consumption.
Sources
failed · StatewideWould impose a moratorium on state and local governmental entities accepting applications or permits for covered data centers or acting on those without final approval, until the General Assembly establishes a comprehensive oversight and approval process.South Carolina H5526 (2025-2026)
What this means
If enacted, this would stop state and local governments from accepting data center permit applications or acting on applications that lack final approval, for facilities with peak demand of at least 5 megawatts, until the legislature creates an oversight process (permit freeze and definition). Because the bill gives no deadline for ending the freeze, it could significantly delay or prevent new projects and expansions, though it is not a permanent ban on operating existing centers.
Timing
- Ends
- until the General Assembly establishes a comprehensive oversight and approval process for new data centers in this State
People behind it
- Rep. J. L. Johnson
Identified sponsor of H. 5526, which he introduced.
Restrictions & requirementsHide restrictions & requirements1
Upon the Governor’s approval, state, county, municipal, and other political-subdivision entities may not accept data-center applications or permits, or act on applications or permits that have not received final approval, until the General Assembly establishes a comprehensive oversight and approval process for new data centers. The measure defines a data center as a facility, campus, or interconnected facilities primarily used to store, retrieve, or transmit data, with peak demand of at least five megawatts.
Sources
failed · StatewideWould impose a moratorium on new data-center approvals until January 1, 2028, prohibiting state and local governmental entities from granting final approval for applications, permits, incentives, or related requests, including rezoning, building permits, site plans, economic incentives, and fee-in-lieu-of-taxes arrangements.South Carolina H5286 (2025-2026)
What this means
If enacted, the measure would temporarily block final approvals for new data centers—including zoning, permits, and incentives—until January 1, 2028, making new projects substantially harder to build. It does not directly bar existing data centers from operating.
Timing
- Ends
- Jan 1, 2028
The moratorium on final approvals for new data centers lasts until January 1, 2028. The resolution would take effect upon the Governor’s approval.
People behind it
- Rep. Long
Listed as a sponsor of the joint resolution.
- Rep. T. Moore
Listed as a sponsor of the joint resolution.
- Rep. Yow
Listed as a sponsor of the joint resolution.
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- Rep. C. Mitchell
Listed as a sponsor of the joint resolution.
- Rep. Martin
Listed as a sponsor of the joint resolution.
- Rep. Edgerton
Listed as a sponsor of the joint resolution.
- Rep. Chumley
Listed as a sponsor of the joint resolution.
- Rep. Magnuson
Listed as a sponsor of the joint resolution.
- Rep. Lawson
Listed as a sponsor of the joint resolution.
- Rep. Frank
Listed as a sponsor of the joint resolution.
- Rep. Huff
Listed as a sponsor of the joint resolution.
- Rep. Crawford
Listed as a sponsor of the joint resolution.
- Rep. Chapman
Listed as a sponsor of the joint resolution.
- Rep. Atkinson
Listed as a sponsor of the joint resolution.
- Rep. Sanders
Listed as a sponsor of the joint resolution.
- Rep. Burns
Listed as a sponsor of the joint resolution.
- Rep. Bailey
Listed as a sponsor of the joint resolution.
- Rep. Guest
Listed as a sponsor of the joint resolution.
- Rep. Hardee
Listed as a sponsor of the joint resolution.
- Rep. Hager
Identified as having requested removal of their name as a sponsor.
- Rep. Gilliam
Identified as having requested removal of their name as a sponsor.
- South Carolina House of Representatives
Introduced and read the joint resolution for the first time.
- House Ways and Means Committee
Received the joint resolution by referral.
Restrictions & requirementsHide restrictions & requirements1
Until January 1, 2028, state and local governmental entities may not grant final approval for applications, permits, incentives, or other requests related to a new data center. This includes rezoning, special exceptions or use permits, building permits, site plans, development plans, economic incentives, and fee-in-lieu-of-taxes arrangements. The resolution defines a data center to include a facility with equipment for managing at least one megawatt of electrical-power and cooling capacity. The approval moratorium and covered requests
Sources
failed · StatewideWould protect existing ratepayers and communities from cost-shifting, stranded utility investments, and disproportionate impacts from large-load projects, including data centers and customers with projected demand of at least 50 MW.South Carolina H5215 (2025-2026)
What this means
The bill would make large-load projects, including data centers with projected demand of at least 50 MW, take on more costs and commitments, such as paying for utility upgrades and providing financial security. Public hearings, water-use plans, and local planning certification could also add delays and make permits or incentives harder to obtain, though the bill would not ban data centers.
People behind it
- Representative Wendell K. Jones
Democratic
Primary sponsor who introduced the bill in the House.
- South Carolina General Assembly
Legislative body proposing and enacting the measure.
- Public Service Commission
Reviews and approves large-load customer contracts, rates, interconnection agreements, and required reports.
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- Department
Administers incentive-related requirements, audits compliance, and receives reimbursement payments when conditions are unmet.
- Department of Environmental Services
Determines community-impact mitigation, reviews water-resource plans, holds water-use hearings, and verifies water-use compliance.
- Local governing authority
Conducts required public hearings and certifies compatibility with comprehensive planning and zoning requirements.
Restrictions & requirementsHide restrictions & requirements19
A data center with projected peak demand of at least 50 MW, or another threshold established by Public Service Commission rule, must obtain a commission-approved contract with its electrical utility before receiving service.
The required utility contract must identify all new facilities and upgrades needed to serve the large load customer.
The large load customer must either participate in the utility’s emergency demand-response program or pay an increased amount for firm service reflecting additional reliability costs.
The utility contract must establish a minimum electric-service threshold for at least 20 years, sufficient for the utility to recover the costs of new facilities and related upgrades.
If the customer terminates service or reduces anticipated demand before the utility recovers its service-related costs, the customer must pay the remaining unrecovered amount.
The Public Service Commission must require the large load customer to provide financial security in an amount determined by the commission.
The commission may refuse to approve a contract, interconnection agreement, or rate unless the project provides a public net benefit to South Carolina, including consideration of employment, infrastructure resilience, and community-burden mitigation.
The commission may impose additional, nondiscriminatory conditions through tiered review, including enhanced financial security, modified service thresholds or contract terms, additional reporting or audits, demand-response participation, or limits on cost-recovery mechanisms.
Each large load customer must submit an annual report to the commission by July 1 covering peak MW, annual MWh, demand-response and curtailment events, on-site generation runtime, and, for data centers, gallons of water withdrawn for cooling; incentive recipients must also report employees, job categories, and wages.
State incentives may not be offered to a potential large load customer unless it provides proof of compliance with the large-load requirements and mitigation of community impacts as determined by the Department of Environmental Services.
Employment, wage, or training commitments supporting an incentive must be written and measurable for later review.
A potential large load customer may not receive an incentive until it has complied with applicable water-resource and large-load obligations, although a prospective incentive may be conditioned on future compliance.
If a large load customer fails to meet future conditions tied to an incentive, it must reimburse the department or pay the incentive’s monetary value; the department must audit compliance as needed and at least biennially.
A potential large load customer may not receive permits or local-government incentives until after a public hearing on the project, with at least 30 days’ notice published in a newspaper and on the local government’s website and mailed to property owners within one mile.
Before the local public hearing, the public must receive information about the project’s anticipated electric load, backup generation plan, water usage, traffic impacts, and construction plans.
A local governing authority must certify that the project is compatible with its comprehensive planning and zoning requirements before issuing permits or incentives.
Before receiving permits, a potential large load customer must submit water-resource plans to the Department of Environmental Services covering monthly consumption, conservation measures, treatment chemicals, and a drought-use contingency plan; the information must be public and the department must hold at least one public hearing on the plans.
A large load customer must submit an annual water-usage report to the Department of Environmental Services by January 1, and the department must verify compliance with the report at least once every three years.
When the county is in drought status, the Department of Environmental Services must verify that the large load customer is following its water-use contingency plan.
Benefits & exceptionsHide benefits & exceptions4
Allows state agencies and other entities to offer incentives to a potential large load customer after it proves compliance with the large-load requirements and mitigation of community impacts. Incentives tied to future employment, wages, or training commitments may be offered if those commitments are written and measurable, and prospective incentives may be conditioned on future compliance.
Requires the utility contract to identify all new facilities and upgrades needed to serve the large load customer, providing a defined framework for the generation, transmission, distribution, substation, interconnection, and network improvements needed for service.
Permits a large load customer to obtain firm electric service by paying an increased amount reflecting additional reliability costs instead of participating in emergency demand-response curtailments.
Provides for a minimum electric-service threshold lasting at least twenty years, allowing the utility to recover the costs of new facilities and upgrades needed to serve the large load customer and supporting a long-term service commitment.
Sources
failed · StatewideWould establish a statewide framework for data-center siting and development in South Carolina, covering facilities with connected electrical loads of at least one megawatt and creating a Data Center Development Office within the Department of Environmental Services.South Carolina S867 (2025-2026)
What this means
The bill would add a state siting permit, water-efficiency limits, annual reporting, and noise and light requirements, creating meaningful new work and costs for covered data centers (a permit before operations). It also sets review deadlines and offers tax credits for eligible brownfield projects, but those benefits likely do not offset the added requirements overall (brownfield tax credits).
People behind it
- Davis
Named as a bill sponsor; the bill was introduced by these senators.
- Kimbrell
Named as a bill sponsor; the bill was introduced by these senators.
- Garrett
Named as a bill sponsor; the bill was introduced by these senators.
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- Sutton
Named as a bill sponsor; the bill was introduced by these senators.
- Walker
Named as a bill sponsor; the bill was introduced by these senators.
- Blackmon
Named as a bill sponsor; the bill was introduced by these senators.
- Turner
Named as a bill sponsor; the bill was introduced by these senators.
- Zell
Named as a bill sponsor; the bill was introduced by these senators.
- Kennedy
Named as a bill sponsor; the bill was introduced by these senators.
- Devine
Named as a bill sponsor; the bill was introduced by these senators.
- Senate Agriculture and Natural Resources Committee
Reviewed the bill and recommended that it do pass.
- Wes Climer
Presented the committee’s favorable report for the Committee.
- Department of Environmental Services
Would house the Data Center Development Office and is directed to promulgate implementing regulations.
- Data Center Development Office
Would administer permitting, coordinate state-agency reviews, provide guidance, and enforce the chapter; it is assigned duties including processing and deciding siting permits.
- Public Service Commission
Would administer the measure’s utility-rate, electrical-service, and cost-allocation provisions, including jurisdiction over utility rates.
- Department of Revenue
Would administer the proposed brownfield-related tax credits and, with the Department of Environmental Services, promulgate regulations for them.
- Local governments
Would retain land-use authority and be required to undertake data-center planning and establish development policies.
- Utilities
Would participate in administering electric-service arrangements and are directed to develop standard data-center service contracts where not already available.
Restrictions & requirementsHide restrictions & requirements10
A data center must obtain an office siting permit before beginning operations, in addition to other state and local approvals. The application requires a pre-application consultation, and review may take 60, 90, or 120 days depending on the facility tier; extensions are allowed by agreement or in extraordinary circumstances. A missed deadline results in approval subject to standard conditions. A data center may not begin operations
Tier 2 and Tier 3 applications require progressively more extensive review. Tier 2 applications require a site-specific environmental review statement and assessment of major infrastructure; Tier 3 applications require a detailed infrastructure assessment and a comprehensive environmental review, including regional water, air quality, and traffic impacts. Tier 3 data center applications shall require
Data centers must meet water-efficiency limits measured by WUE: no more than 2.0 liters/kWh for Tier 1 and Tier 2, and 1.5 liters/kWh for Tier 3. They must also report annual water use, WUE, and significant resource-use changes. Variances may be available in specified circumstances, and certain non-cooling uses are exempt. WUE shall not exceed 2.0 liters/kWh
The office assesses whether proposed sites have adequate water supply, wastewater treatment, fiber connectivity, and road access. It may identify deficiencies that the operator must cure within a reasonable time, with the operator bearing reasonable cure costs. Site-specific buffers may also be required; presumptively reasonable distances include one-half mile or less from wildlife refuges and heritage preserves, and one-quarter mile or less from critical habitat, subject to mitigation and site factors. An infrastructure adequacy assessment
Data centers must comply with local zoning, land-use rules, building codes, and other local approvals. Local governments may impose additional reasonable requirements for local concerns, although they may not impose requirements more restrictive than the act’s standards for operational efficiency or state-level infrastructure adequacy. data centers must comply with local zoning
Electric-service rates and agreements are subject to Public Service Commission review. Agreements must allocate the fair costs of utility service—including attributable infrastructure, fixed and capacity costs, and reliability costs—to data center operators. The commission must require financial assurances for contractual obligations; for investment-grade operators, these may reach 100% of unrecovered infrastructure costs. contracts for electric service must ensure
Facilities must meet operational requirements addressing noise, vibration, and lighting. Noise limits at residential property boundaries are 60 dBA Leq during the day and 50 dBA at night, subject to case-specific adjustments; monitoring is required before opening, within six months after opening, and every three years thereafter. a maximum of 60 dBA Leq
Tier 2 and Tier 3 facilities must file decommissioning plans, and the office may require them to provide financial assurance based on site-specific factors. When operations cease, operators generally must remove above-ground structures if the site is not reused, restore the site, properly dispose of or recycle materials, and clean up contamination caused by operations. Tier 1 facilities are exempt from this section. Tier 2 and Tier 3 data centers shall file
The act does not replace other applicable environmental requirements: data centers remain subject to federal requirements and applicable air-quality, stormwater, wetlands, and other environmental laws and regulations. Data centers remain subject to
The act applies prospectively to applications submitted after its effective date, but an existing data center becomes subject to its provisions if it increases electrical load capacity by more than 50% over the capacity used on that date or increases floor area by more than 50%. increase electrical load capacity by more than fifty percent
Benefits & exceptionsHide benefits & exceptions17
Brownfield and remediation-site projects would qualify for state income tax credits: 25% of eligible remediation costs, capped at $5 million per facility, plus a 2% investment credit capped at $10 million. Certification, completed approved remediation, compliance with the act, and an application within 12 months of starting commercial operations are required; credits are subject to a $50 million annual statewide cap and may be carried forward for 10 years. The tax-credit amounts and limits
The state office would proactively identify suitable locations and maintain a site inventory. Existing industrial parks with demonstrated utility capacity, previously developed industrial or commercial sites, and identified brownfields would be presumptively suitable. Presumptively suitable locations
The office would provide pre-application consultations, serve as a single point of contact, coordinate state-agency reviews, and offer technical assistance and guidance to operators. A single point of contact
Siting applications would have tiered decision deadlines: 60 days for Tier 1, 90 days for Tier 2, and 120 days for Tier 3, measured from receipt of a completed application. Deadlines may be extended by agreement or in extraordinary circumstances; otherwise, a missed deadline means approval subject to standard conditions. A permit lasts for the facility’s operations if it has an electric-service contract. Permitting deadlines and approval if a decision is late
Tier 1 applicants would receive a lighter review: no detailed infrastructure assessment when located in qualifying industrial parks or areas with demonstrated adequacy, no environmental review statement, and water-conservation compliance by certifying an intent to use industry best practices. Tier 1 application requirements
Tier 2 infrastructure review would focus on major systems rather than every component, and the office could waive specific environmental-review elements when site conditions show minimal impact. The focused Tier 2 infrastructure review
If an infrastructure assessment identifies deficiencies, the office must give written notice with possible solutions and a reasonable opportunity to cure them; it may not deny the application before that opportunity. The site must be found adequate if deficiencies are cured within a reasonable time and at reasonable cost to the operator. An opportunity to cure infrastructure deficiencies
The Public Service Commission would approve utility rate agreements using flexible structures, including upfront contributions, hybrid rates, minimum contract obligations, and graduated rates, with the aim of assigning directly attributable service costs to data centers rather than nonparticipating customers. Acceptable rate structures
The commission would establish expedited review for qualifying rate agreements that show no cross-subsidization, provide adequate financial assurances, and meet operational-efficiency standards; approval is due within 60 days absent material concerns. Utilities would also be directed to develop standard electric-service contracts for data centers. Expedited rate-agreement approval
For electric-service and infrastructure agreements, financial assurance for investment-grade operators could not exceed 100% of unrecovered infrastructure costs; requirements may be lower for strong-credit operators, decrease as costs are recovered, and be shared among the same operator’s facilities. Financial-assurance limits
Data centers could use self-generation or private power-purchase agreements. Standby charges must reflect actual backup-service costs and avoid penalizing self-generation, and interconnection review would be expedited under established standards. Self-generation and expedited interconnection
Local governments would retain zoning and land-use authority, but could not impose requirements more restrictive than the act’s standards for operational efficiency or state-level infrastructure adequacy. The state office’s permit decision could not be delayed by local zoning or land-use processes. Limits on additional local requirements
Compliance with the act would satisfy state-level environmental review specifically addressing data center operations, although federal requirements and other listed environmental permits and laws would still apply. State-level review provision
Confidential operator information submitted to the office, including facility designs, security plans, detailed operational data, and qualifying trade-secret financial information, would be protected from public disclosure under the state Freedom of Information Act. Protected confidential information
Tier 1 facilities would be exempt from the act’s decommissioning-plan and decommissioning-financial-assurance requirements. For Tier 2 and Tier 3 facilities, financial assurance would be required only at the office’s discretion based on site-specific factors, could be phased in over five years, and would account for equipment and materials’ salvage value. Tier 1 decommissioning exemption
Enforcement would generally allow a reasonable cure period and corrective-action plan before penalties, except for willful misconduct; first-time violations of non-material requirements would receive a warning. Penalties are capped by tier, and non-willful violations may receive a stay during an appeal if the operator posts reasonable security. For two years after the act takes effect, the department would prioritize technical assistance and guidance over enforcement. Cure periods and first-time warnings
The act would generally apply prospectively to applications submitted after its effective date. Existing data centers would become subject to its provisions only if they increased electrical-load capacity or floor area by more than 50% over the specified baseline. Prospective application and existing-facility thresholds
Sources
failed · StatewideProposes, but has not enacted, the “Energy Affordability Act,” which would require utilities to achieve at least 0.66% net energy savings through energy-efficiency and demand-side programs, while supporting cost recovery, incentives, low-income programs, and potential penalties for noncompliance.South Carolina H5484 (2025-2026)
What this means
If enacted, the bill would make building and operating large data centers harder by requiring centers of at least 50 megawatts to accept long electric-service contracts and cover costs tied to serving them, as well as report water use and provide money or other security for decommissioning (15-year contracts and cost recovery). It would also limit access to some tax breaks for new projects; these added costs and obligations are significant, though the bill does not ban data centers (tax-exemption deadlines).
People behind it
- Rep. J.L. Johnson
Identified sponsor of the bill.
- South Carolina House of Representatives
Introduced the bill and referred it to the House Committee on Labor, Commerce and Industry.
- South Carolina General Assembly
Proposed the measure for enactment and would enact it if approved.
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- Public Service Commission
Administers and approves utility demand-side programs, data-center electric-service contracts, and discounted low-income rates.
- Office of Regulatory Staff
Provides property owners with summaries of their rights under state eminent-domain law.
- Department of Environmental Services
Receives commercial data-center water-use reports, decommissioning plans, and financial assurances, and may assess penalties.
- Department of Revenue
Receives taxpayer notices concerning specified data-center sales-tax exemptions.
- Department of Commerce
Receives taxpayer notices and certifies datacenters for specified sales-tax exemptions.
- Electric service providers
Must establish qualifying electric-service terms for commercial data centers and recover specified costs from those facilities.
Restrictions & requirementsHide restrictions & requirements11
Commercial data centers with peak demand of 50 megawatts or greater must accept electric-service terms designed to recover their service-related costs from the data centers, including contracts lasting at least 15 years and minimum billing requirements.
A commercial data center must pay unrecovered distribution, transmission, and generation costs if it terminates its electric-service contract, and must provide collateral that the electric service provider holds in a separate account.
Electric-service contracts for commercial data centers require approval by the Public Service Commission, which must determine that qualifying increased fuel, generation, and transmission costs are recovered solely from the data center.
Commercial data centers must report monthly water use to the Department of Environmental Services, separately identifying surface water, groundwater, and water supplied by public or private utilities and identifying each source.
A proposed commercial data center must report anticipated monthly and annual water use and its water source within 30 days after entering a water-supply agreement and at least 90 days before construction begins; the Department of Environmental Services may impose a penalty of up to $10,000 per day for noncompliance.
Commercial data centers must file a decommissioning plan with the Department of Environmental Services describing facility-removal procedures, estimated costs, and the decommissioning timeline.
Proposed commercial data centers must provide financial assurance for estimated decommissioning costs, accounting for salvage value. Acceptable instruments include letters of credit, surety bonds, escrow accounts, or other cash-equivalent instruments; the assurance may be phased in over the first five years of operation.
Eligibility for the computer-equipment sales-tax exemption for a technology-intensive facility is limited to taxpayers meeting the existing investment, job, compensation, and equipment requirements that entered into a fee-in-lieu agreement on or before May 30, 2026.
The sales-tax exemption for electricity used by a technology-intensive facility is limited to facilities that qualified for the related computer-equipment exemption on or before May 30, 2026.
To claim the specified sales-tax exemption for data-center computers, computer equipment, and related hardware and software, the taxpayer must notify the Departments of Revenue and Commerce in writing of its intent to claim the exemption on or before May 26, 2026.
The specified data-center computer-equipment sales-tax exemption applies only to data centers certified by the Department of Commerce before May 30, 2030; continued application for an additional ten-year period requires certification by May 29, 2030.
Benefits & exceptionsHide benefits & exceptions7
Provides a sales-tax exemption for computer equipment used by a technology-intensive facility if the taxpayer invests at least $300 million, creates at least 100 qualifying full-time jobs, has at least 60% of the investment in computer equipment, and enters into a fee-in-lieu agreement by May 30, 2026. fee-in-lieu agreement on or before May 30, 2026
Preserves a sales-tax exemption for electricity and related equipment and fuel used by a qualifying technology-intensive facility, but only if the facility qualified for the computer-equipment exemption by May 30, 2026. qualifying for the sales tax exemption
Allows a taxpayer to claim the datacenter exemption for original or replacement computers, computer equipment, hardware, and software if it notifies the Departments of Revenue and Commerce in writing by May 26, 2026; investment and job-creation periods begin upon that notification. notify the Department of Revenue and Department of Commerce
Extends eligibility for the datacenter computer-equipment exemption to facilities certified by the Department of Commerce before May 30, 2030, with the exemption continuing for an additional ten-year period for taxpayers certified by May 29, 2030. certified by the Department of Commerce
Creates a permitting deadline for energy infrastructure projects: an agency must issue a decision within six months, and failure to take final action within that period results in deemed approval. application shall be deemed approved
Establishes utility-service contracts for commercial data centers of at least 50 megawatts, including minimum billing and long-term terms, allowing electric providers to prepare for and provide dedicated service while requiring the center to bear substantially all associated costs. has a peak demand of fifty megawatts or greater
Protects commercial data centers that were already customers of an in-state electric service provider on May 15, 2026, from the new data-center electric-service requirements. shall not apply to a commercial data center that is a customer
Sources
failed · StatewideWould establish a Data Center Siting Act requiring facilities with a combined connected electrical load of at least one megawatt to obtain Public Service Commission certification before operating, while retaining other state and local approval requirements; the bill was introduced on February 10, 2026, referred to the Senate Judiciary Committee, and has not been enacted.South Carolina S902 (2025-2026)
What this means
If enacted, this bill would add meaningful hurdles: data centers would need state approval before operating and must meet new water, noise, environmental review, and reporting requirements (certificate before operations). It also requires local governments to plan for data centers, although tiered reviews and preferred sites could reduce some burdens (data center planning policies).
People behind it
- Senator Rankin
Identified bill sponsor of S. 902.
- Senator Devine
Identified bill sponsor of S. 902.
- South Carolina Senate
Introduced the bill on February 10, 2026.
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- Public Service Commission
Would administer the certification process, oversee utility rates and agreements, enforce the Act, and report on its implementation.
- Office of Regulatory Staff
Would establish operational efficiency standards, participate in certification and infrastructure review, and help implement the Act.
- Department of Environmental Services
Would establish water efficiency standards and site-specific buffer requirements, participate in certification and infrastructure review, and help implement the Act.
- Local governments
Would undertake comprehensive data-center planning and establish development policies under the Act.
Restrictions & requirementsHide restrictions & requirements17
A data center with a connected electrical load of at least one megawatt must obtain a Public Service Commission certificate before operating; the certificate is in addition to other state and local approvals. Certificate required before operations
Before applying, an operator must give notice at least 15 calendar days in advance and request a pre-application consultation. at least 15 calendar days
Certificate applications must include specified project, environmental, efficiency, infrastructure, electric-service, decommissioning, and noise, vibration, and lighting information. Applicants must serve copies on specified agencies and municipalities and publish public notice in newspapers of general circulation. application must contain
Certification requires a public hearing; expert testimony must be prefiled, and the proceeding allows agency, municipal, and qualifying public participation subject to intervention deadlines. parties to a certification proceeding
Review requirements and deadlines vary by tier: Tier 1 applications have a hearing within 45 days and a decision within 75 days; Tier 2 within 75 and 105 days; and Tier 3 within 120 and 150 days. Tier 2 requires a site-specific environmental review statement, while Tier 3 requires a detailed infrastructure assessment and comprehensive environmental review. Applications from Tier 1 data centers
The Commission may grant a certificate only after finding, among other things, that the environmental impact and effects on the electric grid and existing utility ratepayers are justified, and that the project has reasonable assurance of conforming to applicable state and local laws. It may decline to apply a local rule it finds unreasonably restrictive under the bill’s stated criteria. may only grant a certificate
Data centers must meet operational-efficiency standards established by the Office of Regulatory Staff and water-efficiency standards established by the Department of Environmental Services. Water-use effectiveness limits are 2.0 liters/kWh for Tiers 1 and 2 and 1.5 liters/kWh for Tier 3; variances may be granted for specified conditions, and certain non-cooling uses are exempt. shall not exceed 2.0 liters/kWh
Operators must file annual reports on water consumption, water-use effectiveness, and significant operational changes; Tier 1 centers receive a simplified form. submit an annual report
Applicants must assess infrastructure adequacy before applying, including water, wastewater, fiber connectivity, and road access. Identified deficiencies must be cured within a reasonable time, with reasonable cure costs borne by the operator, for the site to be found adequate. Tier 1 centers in existing industrial parks or areas with demonstrated infrastructure adequacy do not need a detailed assessment. Applicants shall conduct an infrastructure adequacy assessment
The Department of Environmental Services must set site-specific buffers, including presumptively reasonable buffers of up to one-half mile from national wildlife refuges and heritage preserves and up to one-quarter mile from critical habitat, subject to mitigation and site-specific factors. buffer requirements
The Commission regulates utility rates, service agreements, and infrastructure investments serving data centers. Operators must bear fair, directly attributable service and infrastructure costs, including appropriate fixed and capacity costs, and rate agreements require Commission approval. bear reasonable infrastructure costs
The Commission must require reasonable financial assurances for operators’ utility-service contractual obligations; for investment-grade operators, the amount may not exceed 100 percent of unrecovered infrastructure costs. Tier 2 and Tier 3 centers may also be required, at the Commission’s discretion, to provide decommissioning financial assurance. financial assurances
Tier 2 and Tier 3 centers must file decommissioning plans. When operations cease, operators must remove above-ground structures if the site is not repurposed for similar use, restore the site for future development, properly dispose of or recycle materials, and clean up operational contamination. Tier 1 centers are exempt from the plan and assurance requirements in this section. Tier 2 and Tier 3 data centers shall file
Data centers must comply with local zoning, land-use, building-code, and related requirements. Local governments retain those authorities and may impose reasonable local requirements, but cannot impose requirements more restrictive than the Act’s operational-efficiency standards or state-level infrastructure adequacy determinations. must comply with local zoning and land use regulations
At residential property boundaries, noise limits are 60 dBA Leq from 7 a.m. to 10 p.m. and 50 dBA Leq from 10 p.m. to 7 a.m., subject to case-by-case adjustments. Operators must monitor noise before operation, within six months after starting, and every three years thereafter, and must take reasonable measures to minimize noise, vibration, and light impacts. maximum of 60 dBA Leq
The Act does not replace other environmental laws. Data centers remain subject to federal environmental requirements, air-quality permitting, stormwater and wetlands requirements, and other applicable environmental laws. remain subject to
The Commission may require corrective-action plans, inspections and audits, certificate suspension or revocation after a hearing for serious violations, and civil penalties. Maximum penalties are $10,000 per day for Tier 1, $25,000 for Tier 2, and $50,000 for Tier 3; first-time violations of non-material requirements receive a written warning, and penalties may be waived if violations are cured within the applicable cure period. civil penalties imposed
Benefits & exceptionsHide benefits & exceptions21
The bill sets tier-based review schedules: Tier 1 applications get a hearing within 45 days and a decision within 75 days; Tier 2, 75 and 105 days; and Tier 3, 120 and 150 days, subject to possible extensions. Tier-based review deadlines
Tier 1 projects in existing industrial parks or areas with demonstrated infrastructure adequacy need no detailed infrastructure assessment, no environmental review statement, and may meet water-conservation review by certifying an intent to use industry best practices. Tier 1 application requirements
Tier 2 reviews can focus on major infrastructure systems rather than every component, and the Commission may waive environmental-review elements where site conditions show minimal impact. Tier 2 review provisions
Existing industrial parks with demonstrated utility capacity, previously developed industrial or commercial sites, and designated brownfields are presumptively suitable for data center development. Presumptively suitable locations
If an infrastructure assessment identifies deficiencies, the operator must receive notice of possible solutions and a reasonable opportunity to fix them; the Commission must find infrastructure adequate if deficiencies are cured in a reasonable time and at reasonable cost borne by the operator. Opportunity to cure infrastructure deficiencies
The certification process includes a pre-application consultation, with the Office of Regulatory Staff directed to give clear guidance on the scope of the environmental assessment. Pre-application consultation guidance
The environmental impact assessment is to disregard minor impacts and speculative concerns, and compliance with the Act satisfies state-level environmental review specifically addressing data center operations. Other listed environmental requirements, including federal rules, air permitting, stormwater, and wetlands protections, still apply. Environmental review scope
A certificate amendment requires a hearing like an initial application only if the change significantly increases environmental impact or substantially changes the facility’s location. Amendment hearing conditions
A certificate lasts for the data center’s operating life if it has an electric-service contract in place. Certificate duration
The Commission may approve flexible electric-rate and infrastructure-cost arrangements, including upfront contributions, hybrid rates, minimum contract obligations, and graduated rates; contracts must allocate fair service costs to data centers and protect non-participating customers from directly attributable costs. Rate and cost-recovery options
Rate agreements that show no cross-subsidization, include adequate financial assurances, and meet operational-efficiency standards must be handled under expedited procedures and approved within 60 days absent material concerns. Expedited rate-agreement approval
Data centers with a power usage effectiveness (PUE) below 1.3 may receive preferential treatment in rate-agreement approval. PUE-based preferential treatment
The Commission must set reasonable interconnection requirements and standby charges for self-generation that reflect actual backup-service costs, avoid penalizing self-generation, and expedite interconnection review using established industry standards. Self-generation and interconnection
For investment-grade operators, financial assurances for electric-service and infrastructure obligations may not exceed 100% of unrecovered infrastructure costs; requirements may be reduced for strong credit, reduced as costs are recovered, and shared across multiple facilities owned by the same entity. Limits and reductions on financial assurance
Tier 2 and Tier 3 data centers may receive water-standard variances if climate, superior alternative performance, or site-specific factors justify them. Water-efficiency variances
Local governments retain zoning and land-use authority, but may not impose requirements more restrictive than the Act’s operational-efficiency standards or state infrastructure-adequacy determinations; Commission certification decisions may not be delayed by local zoning or land-use processes. Local authority and certification timing
When deciding whether to grant a certificate, the Commission may decline to apply a local law or regulation it finds unreasonably restrictive in light of existing technology, cost, or economics, and must explain that finding in its order. Exception for unreasonably restrictive local rules
Tier 1 data centers are exempt from decommissioning-plan and decommissioning-assurance requirements; for Tier 2 and Tier 3, assurance is discretionary, may be phased in over five years, and accounts for equipment and materials’ salvage value. Decommissioning requirements and limits
For two years after the Act takes effect, the Office of Regulatory Staff and Department of Environmental Services must prioritize technical assistance and guidance over enforcement to help the industry transition. Two-year transition period
Enforcement generally provides written notice, a corrective-action plan, and a reasonable opportunity to cure before penalties; first-time violations of non-material requirements receive a written warning rather than a penalty or certificate sanction. Notice, cure, and first-time warning provisions
Tier 1 data centers receive a simplified form for required annual reports on water use, water-use effectiveness, and significant resource-related operational changes. Simplified Tier 1 reporting
Sources
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