South Carolina Regulators Rule Data Center’s On-Site Power Generation Exempt from Public Utility Rules

Greenville Spartanburg Asheville Anderson, SC, August 27, 2026 —

South Carolina utility regulators have issued a decision stating that a data center in Spartanburg, which plans to generate its own electricity, is not subject to the same regulatory framework as traditional public power plants. This ruling clarifies the operational boundaries for entities producing power primarily for internal consumption.

The core of the regulatory distinction lies in the data center’s intention to utilize all generated power exclusively for its own operational needs. This means the facility does not plan to export any surplus electricity to the public power grid. This specific operational model was a key factor in the regulators’ determination.

The decision comes amid concerns raised by environmental groups. These organizations have expressed apprehension regarding the potential scale of power generation by such facilities, even when power is not exported. The exact scale of the planned power generation by the Spartanburg data center was not specified in the information available.

The regulators’ ruling effectively exempts the data center from complying with regulations typically applied to public utilities, which are designed to govern power generation, transmission, and distribution to the general public. The specific regulations from which the data center is exempt were not detailed.

The names of the data center, the specific utility regulators, and the environmental groups involved were not provided. Similarly, the timeline for the data center’s power generation plans or the specific date of the ruling were not made public.

Story summarized from the original created by Jessica Holdman on scdailygazette.com, see more information here.

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