South Carolina Gov. Candidate Calls for One‑Year Datacenter Moratorium to Protect Electricity Rates

U.S. Rep. Nancy Mace (R‑SC) has proposed a 12‑month pause on new data‑center construction in South Carolina, citing rising wholesale power costs and urging the state to adopt rules that require facilities to cover their own energy consumption. The move signals growing political scrutiny of high‑density computing projects and sets a clear compliance timeline for operators.

Regulatory Action

Proposal: U.S. Representative Nancy Mace, Republican candidate for South Carolina governor, announced a one‑year moratorium on the approval of new data‑center projects in the state. The moratorium is intended to give legislators and utility regulators time to draft and adopt safeguards that prevent utility ratepayers from subsidising the electricity consumption of large‑scale compute facilities.

What the Moratorium Requires

Energy‑Cost Allocation Rule – Any data‑center seeking a construction permit after the moratorium must demonstrate, through an independent audit, that it will pay for the full marginal cost of its electricity use. This includes:
- Direct purchase of power from the wholesale market or a dedicated generation contract.
- Payment of any capacity‑related charges that would otherwise be spread across residential and small‑business customers.
Eminent‑Domain Safeguard – Projects cannot rely on state‑authorized eminent‑domain seizures of private land. Applicants must secure voluntary site agreements and provide proof of community outreach.
Environmental Impact Review – A supplemental environmental impact statement (EIS) must address grid reliability and heat‑dissipation concerns, referencing the South Carolina Public Service Commission (SCPSC) guidelines.
Reporting Obligations – Operators must file a Quarterly Energy Impact Report with the SCPSC, detailing actual versus projected power draw, and any variance in wholesale rates.

Compliance Timeline

Date	Milestone
June 1 2026	Moratorium officially enacted by the South Carolina General Assembly (pending legislative approval).
June 30 2026	State utility commission publishes draft Data‑Center Energy Cost Allocation Rule for public comment.
July 31 2026	Public comment period closes; commission finalises rule language.
September 15 2026	Draft Eminent‑Domain Protection Ordinance released; stakeholders invited to submit feedback.
October 31 2026	Final rule package (energy‑cost allocation, eminent‑domain safeguard, EIS requirements) adopted by the General Assembly.
November 15 2026	Operators must submit Pre‑Construction Energy Impact Plans for projects slated to begin after January 1 2027.
January 1 2027	Moratorium lifts; only projects meeting the new compliance package may receive permits.

Why This Matters for Compliance Teams

Risk Management: The moratorium creates a clear cut‑off date for pending approvals. Projects in the pipeline must be reassessed for energy‑cost coverage before the July 2026 deadline, or risk denial.
Financial Planning: Companies will need to allocate capital for dedicated power contracts rather than relying on existing utility rate structures. This may affect ROI calculations and financing terms.
Legal Exposure: Failure to demonstrate full cost recovery could be interpreted as a violation of the South Carolina Public Utilities Act (S.C. Code §58‑5‑10), exposing operators to fines and possible injunctions.
Stakeholder Communication: Transparent reporting to the SCPSC and local communities will become a contractual requirement. Compliance officers should prepare templates for the Quarterly Energy Impact Report now.

Next Steps for Operators

Audit Current Power Agreements – Identify any wholesale market exposure that could be passed to ratepayers.
Engage Legal Counsel – Review the pending draft rules and assess gaps in existing contracts.
Develop a Contingency Plan – Model scenarios where the moratorium is extended or the energy‑cost rule is tightened.
Monitor Legislative Activity – Track the progress of Senate Bill 867 and related amendments, as they may influence the final rule set.

By adhering to the outlined timeline and preparing the required documentation, data‑center operators can navigate South Carolina’s emerging regulatory environment while protecting both their projects and the electricity bills of local residents.

For the latest updates on South Carolina’s data‑center policy, refer to the official South Carolina General Assembly website and the SCPSC public notices.