Why It Matters
South Carolina lawmakers are debating whether data centers should bear their own infrastructure costs or pass them to residential utility customers. With multiple bills in play and public opinion strongly favoring cost protections, the policy outcome could determine how the state manages tech facility expansion and who pays for the necessary grid upgrades.
What Happened
Congresswoman Nancy Mace, a candidate for South Carolina governor, announced her support for legislation that would require data centers to cover their own utility costs and infrastructure upgrades. Mace cited Florida’s recent bill as a model, which mandates that data centers pay for their power consumption without shifting costs to residential ratepayers.
Florida lawmakers passed SB 484 in recent weeks. The measure awaits a decision from Governor Ron DeSantis, who previously advocated for additional transparency requirements that did not make it into the final bill. DeSantis had proposed an artificial intelligence bill of rights aimed at preventing utilities from charging state residents more to support large-scale data center development.
By the Numbers
A February 2026 poll conducted by the S.C. Policy Council found 40 percent of respondents believed data centers should generate their own power rather than rely on ratepayer-funded energy facilities. Another 39 percent said data centers should pay for grid capacity upgrades. Only 8 percent supported allowing data centers to use ratepayer-funded energy like other large customers.
The same poll found 76 percent of respondents favored requiring data center operators to enter long-term power purchase agreements to help cover new generation and grid upgrade costs. Eleven percent opposed such a requirement.
Zoom Out
The debate over data center costs reflects a broader national tension between attracting technology infrastructure and protecting residential utility ratepayers. States including Virginia, Georgia, and Texas have grappled with similar questions as hyperscale facilities demand significant power resources. Florida’s legislative approach, if signed into law, would establish a precedent for cost allocation in states courting tech investment.
What’s Next
Three bills addressing data center regulation are currently under consideration in the South Carolina legislature, which concludes its session within the next month. Senate Bill 867, sponsored by Senate commerce chairman Tom Davis, is considered the most comprehensive reform measure. Senate Bill 784, backed by Senate majority leader Shane Massey, focuses on incentives and utility contracts. Senate Bill 902, introduced by Senate judiciary chairman Luke Rankin, includes provisions that some observers say could weaken ratepayer protections. Industry sources indicate all three bills remain subject to amendment.