Still, states have offered massive subsidies to lure data centers — both for their enormous up-front capital investment and the cachet of bringing in big tech names such as Apple and Facebook. 

But as the cost of these subsidy programs balloons and data centers proliferate coast to coast, lawmakers in several states are rethinking their posture as they consider how to cope with the growing electricity demand.

In fast-growing South Carolina, lawmakers have pointed to data centers as a major factor in rising electricity demand. During debate on a broader energy bill, the House added a provision that would prevent data centers from receiving discounted power rates.

Lynn Teague, vice president of the League of Women Voters of South Carolina, said that change was made with no public discussion.

Teague, who lobbies the Legislature, said South Carolinians, including more than 700,000 people living in poverty, shouldn’t have to pick up the tab for tax or utility breaks for major data center firms.

“We have companies like Google with over $300 billion in revenues a year wanting these folks to subsidize their profit margin at the same time that they’re putting intense pressure on not just our energy, but our water,” she said.

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