Rep. Nancy Mace (R-SC) is calling for a one-year moratorium on the construction of new data centers in South Carolina, arguing the state needs stronger safeguards in place as the Trump administration pushes to accelerate artificial intelligence development nationwide.
South Carolina has become an increasingly popular destination for data centers, with developers drawn by tax incentives, available land, and expanding energy infrastructure. One estimate puts the number at 44 data centers already operating in the state. By comparison, Virginia and Texas lead the nation with 398 and 296 facilities, respectively.
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“South Carolina is not Big Tech’s personal power grid,” Mace said. “These companies are planting massive data centers across our state, driving up energy demand, and leaving families and small businesses to pick up the tab. South Carolinians are already stretched thin. The last thing they need is a higher electricity bill subsidizing Big Tech’s bottom line.”
Mace, who is running for governor of South Carolina, said the proposed one-year pause would give lawmakers time to establish protections for ratepayers and the state’s electric grid.
She argued that any future framework should require data centers to fully pay for the electricity they consume, as well as any infrastructure upgrades needed to support their operations.
“South Carolina families and small businesses should not pay a dime of it,” a press release from the congresswoman’s office said.
Concerns over the rapid expansion of data centers have drawn bipartisan attention as demand for AI infrastructure surges nationwide.
Earlier this year, Sen. Bernie Sanders (I-VT) and Rep. Alexandria Ocasio-Cortez (D-NY) introduced legislation that would temporarily halt new data center construction while lawmakers study the environmental, economic, and societal impacts of AI.
“Congress has a moral obligation to stand with the American people and stop the expansion of these data centers until we have a framework to adequately address the existential harm AI poses to our society,” Ocasio-Cortez said. “We must choose humanity over profit.”
At the same time, President Donald Trump has made AI infrastructure a major priority for his administration, arguing the United States must rapidly expand computing capacity to compete with China. The White House views dominance in AI as critical, particularly as competition with Beijing intensifies.
Trump discussed the issue with Chinese President Xi Jinping during a meeting last week, revealing afterward that the two leaders “talked about possibly working together for guardrails.”
According to an Energy Department report, data centers consumed roughly 4.4% of total U.S. electricity in 2023 and are expected to consume approximately 6.7% to 12% of total U.S. electricity by 2028.
The U.S. has more than 3,000 operational data centers, with more than 1,500 additional facilities in various stages of development, according to a Pew Research Center analysis.
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While 87% of existing data centers are located in urban areas, roughly 67% of planned developments are expected to be built in rural communities.
Several states are already grappling with how to regulate the industry’s rapid growth. Lawmakers in Maine recently passed legislation that would have paused new data center construction until November 2027, though Gov. Janet Mills (D-ME) later vetoed the bill.
