South Carolina to Limit Data Center Development
New 2027 legislation aims to curb power and water usage through mandatory closed-loop cooling and site restrictions.
Updated on Oct. 23, 2026 in Data Centers
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South Carolina legislators are drafting new regulations to govern the development of data centers across the state. The proposed policy, set for debate in the 2027 legislative session, aims to address increasing concerns regarding the infrastructure footprint of high-capacity computing facilities.
Why it matters
The legislative push highlights a growing tension between the rapid expansion of digital infrastructure and the capacity of local power grids and water supplies. By targeting cooling systems and energy independence, the state aims to mitigate the resource-intensive requirements inherent in modern data center operations.
The proposed regulations would mandate the implementation of closed-loop cooling systems, which recycle water internally rather than drawing continuously from external sources. Additionally, the policy would require developers to disclose total energy and water demands, while encouraging onsite power generation to offset grid pressure.
The players
Tom Davis
South Carolina State Senator from Beaufort who is currently drafting legislation to regulate the expansion of data centers.
Russell Ott
South Carolina State Senator from Calhoun who has proposed requirements for the public disclosure of data center energy and water demands.
The details
The proposed legislative framework seeks to restrict project locations and enforce stricter environmental utility management. Closed-loop cooling functions by circulating water through a secondary heat exchanger, effectively isolating the system from local water supplies while dissipating heat via airflow or external cooling units. These measures aim to curb the high-volume water and electricity consumption that critics argue threatens local utilities.
Timeline
Legislative debates on data center regulations are scheduled for the 2027 legislative session.
The Tech Race
The proposed South Carolina legislation follows a growing trend of state-level oversight prompted by local moratoriums. This move signals an attempt to reconcile the industry's rapid growth with the physical constraints of regional utilities.
Residents in counties considering new projects may see a temporary halt in construction until the 2027 regulations are finalized. The shift toward closed-loop cooling and onsite power generation is intended to preserve local utility availability for residential and non-industrial commercial users.
The takeaway
Legislators are pivoting toward stricter control over resource-heavy tech infrastructure. Stakeholders should watch the 2027 legislative session for finalized requirements regarding energy disclosure and mandatory cooling technologies.
Further reading
Learn more about infrastructure trends in Data Centers.
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Should your state government impose stricter regulations on new data center developments in your area?
