Why It Matters
South Carolina ratepayers could be shielded from absorbing the massive energy costs generated by large-scale data centers if a policy push by Nancy Mace gains traction in the Palmetto State. The issue sits at the intersection of Big Tech expansion, household energy affordability, and the role of government in protecting consumers from cost-shifting by powerful corporate interests.
With South Carolina families already facing elevated grocery and energy costs, Mace argues that allowing tech giants to offload infrastructure expenses onto residential customers and small businesses is unacceptable — and she wants state law to say so explicitly.
What Happened
South Carolina congresswoman and gubernatorial candidate Nancy Mace announced on April 8, 2026, that she would push for legislation modeled after Florida’s approach to data center regulation, requiring these facilities to bear the full financial cost of their energy consumption and any necessary grid infrastructure upgrades.
Mace specifically cited Florida’s SB 484 — a bill awaiting Governor Ron DeSantis’s signature — which would require data centers to cover their own utility costs and grants local governments expanded authority over land development tied to these facilities. DeSantis had previously championed even stricter measures, including an artificial intelligence bill of rights that would have prohibited utilities from charging Florida residents more to support large-scale data center development.
“South Carolina families are already stretched thin,” Mace said. “Groceries cost more. Energy bills cost more. And now Big Tech wants to plant massive data centers across our state and let South Carolina ratepayers foot the bill for their power. Not on my watch.”
Mace stated that her gubernatorial administration would pursue legislation ensuring “zero cost-shifting to residential customers or small businesses.”
By the Numbers
A February 2026 poll conducted by the S.C. Policy Council suggests Mace’s position aligns strongly with voter sentiment across the state:
- 40% of respondents said data centers should be required to generate their own power and not rely on ratepayer-funded energy facilities.
- 39% said data centers should be required to pay the costs of upgrading energy generation capacity.
- 76% said data center operators should be required to enter into long-term power purchase agreements to help cover the cost of new power generation and grid upgrades.
- Only 8% believed data centers should be allowed to use ratepayer-funded energy generation like other large customers.
- Only 11% opposed the long-term power purchase agreement requirement.
Zoom Out
South Carolina is not alone in grappling with the strain that hyperscale data centers place on power grids and utility customers. As artificial intelligence and cloud computing demand surge nationwide, state legislatures from Florida to Virginia have been forced to weigh the economic benefits of attracting large tech facilities against the real costs borne by ordinary ratepayers.
Former Florida House Speaker Paul Renner has made property tax relief a top priority in his own statewide campaign, reflecting a broader conservative momentum across the South to protect working families from government and corporate cost burdens alike. Florida’s SB 484 now serves as a policy template other states are watching closely.
The debate also raises deeper questions about corporate accountability — specifically whether taxpayer-funded utility infrastructure should subsidize the operational costs of some of the wealthiest companies in the world.
What’s Next
Three data center bills are currently moving through the South Carolina legislature, which is scheduled to end its current session in less than a month. S. 867, sponsored by Senate Commerce Chairman Tom Davis, is considered the most comprehensive reform measure. S. 784, sponsored by Senate Majority Leader Shane Massey, focuses specifically on incentives and utility contracts. A third bill, S. 902, sponsored by Senate Judiciary Chairman Luke Rankin, mirrors Davis’s legislation but contains language that some critics say weakens ratepayer protections.
Industry sources described all three bills as “moving targets” as the session winds down. Legislative scrutiny in Columbia has intensified in recent weeks, adding uncertainty to the timeline for any final data center measure reaching the governor’s desk.
Mace’s public campaign on the issue is expected to keep pressure on lawmakers as they navigate competing versions of the legislation before the session closes.