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Data Center Proposals: Balancing the Checkbook with Regional Reality
Data Center Proposals: Balancing the Checkbook with Regional Reality
Several counties in South Carolina have recently been approached by developers of large data centers, and more will be in the future. Artificial Intelligence and "cloud computing" technologies have greatly increased the need for these facilities, bringing both opportunity and challenge.
County officials face difficult decisions when approached by data center developers. The financial promises made by these corporations are powerful and designed to be hard to refuse. They typically come in two forms:
The "Quick Fix": Substantial one-time payments (often negotiated as fees in lieu of taxes) that promise a relatively large amount of money to ease the county's immediate budget holes.
The Long Game: The promise of ongoing yearly revenue to fund schools, roads, and emergency services for decades.
We respect that our elected leaders are trying to secure a financial future for our community using these tools. Data centers can bring high-paying technical jobs, infrastructure investment, and stable revenue—all legitimate benefits that deserve serious consideration.
However, a decision of this magnitude cannot be made in the dark. The Non-Disclosure Agreements (NDAs)—which developers frequently impose on County and City Councils—limit the transparency required for a healthy democracy. They prevent the public, and perhaps even the decision-makers, from seeing the full picture.
How can anyone weigh the benefits against the risks when the details are hidden?
📉 Deeper analysis, independent of the developer, is needed. Let's look at the full picture—including both cautionary tales and success stories:
The "Net Loss" Reality: Often, the cost to the community (infrastructure upgrades, road maintenance, and increased demand on services) actually exceeds both the one-time payments and the yearly tax revenue. We cannot afford a project that costs the taxpayers more than it pays. Some communities have successfully negotiated agreements that ensure residents come out ahead—let's study those successes alongside the warning signs.
Regional Impact: While a project may sit within one county's lines, the impact does not. We share aquifers and electric grids with our neighbors. A massive facility can strain water and power resources for the entire region. Surrounding counties deserve a voice in a decision that affects their utilities.
Quality of Life: Once the rural or residential character of an area is changed by industrial sprawl, it cannot be gained back. Smart development preserves what makes our communities special while still creating economic opportunity.
We're calling for a "Smart Growth" approach. Here are our recommendations:
🛑 PAUSE for Independent Analysis: Put the project on hold until a third party—not the developer—can verify the economic impact. In Colleton County, legal action is occurring to put their project on hold. We commend developers who proactively share information and work transparently with communities.
💧 DEMAND Water & Power Studies: We need full disclosure on resource usage. We must ensure a project won't drain shared aquifers or overload the regional electric grid. This includes looking at renewable energy requirements and cooling efficiency standards.
📝 NEGOTIATE a Community Benefits Agreement: If a project moves forward, it must be on the community's terms. A binding agreement ensures the developer supports the area, not just their shareholders—with specific dollar amounts, timelines, and clawback provisions if promises aren't kept.
🔄 CONSIDER Alternatives: Let's look at development options that provide revenue without sacrificing quality of life, including phased development with community checkpoints.
📚 LEARN from All Communities: Many towns have rejected similar projects and found sustainable ways to grow. Others have successfully negotiated data center agreements that benefit residents—we need to study both outcomes to make informed decisions.
What Does Success Look Like? ✅ Clear community benefits that exceed costs ✅ Transparent negotiation process ✅ Environmental protections with teeth ✅ Infrastructure improvements paid by the developer ✅ Decommissioning plans and financial guarantees ✅ Regional cooperation on resource impacts
Transparency isn't an obstacle; it's a protection. Responsible developers understand this and work openly with communities. Let's ensure any development is truly a win for everyone—the host county, the surrounding region, and our shared future.
As your Congressman, I'll fight for statewide policies that ensure transparency, regional cooperation, and community-first development decisions.
📘 NEW RESOURCE: To assist residents and officials, our campaign has put together a Decision Guide. This document is designed to help anyone involved in the process determine if a specific data center proposal is truly beneficial to their community. Please reach out to us to get your copy.
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