by Meghan Gonyo 

COLUMBIA, S.C. (WACH) — South Carolina lawmakers are moving to tighten rules on data centers as electricity demand rises across the state and concerns grow that residents could end up paying for major power expansion.

Lawmakers said there are around 30 data facilities operating in South Carolina right now and that the number is expected to grow.

With power demand surging, residential electricity rates could increase, raising questions about who will cover the cost of new generation and transmission infrastructure.

Gov. Henry McMaster said data centers are a reality the state must manage carefully. “I think we need to be really smart about it, but it's a fact we can't do without them,” McMaster said.

The International Energy Agency projects global data center electricity demand will more than double by 2030, growing four times faster than overall electricity demand, largely because of AI. Some studies have projected electricity bills could increase as high as 25% in some parts of the United States.

Lynn Teague, vice president of the League of Women Voters, pointed to recent financial analysis suggesting higher utility costs tied to data center growth. “Goldman Sachs just last week noted that they expect a 6% increase utility costs, much of it attributable to infrastructure construction for data centers,” Teague said.

While the South Carolina Department of Commerce does not track exactly how many data centers are in the state, several have been built in recent years and more are planned.

Two more hearings and testimony are expected before lawmakers move forward with what Senate Bill 867 will ultimately include.

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