Data centers are the backbone of the increasinglydigital world, and they consume a growing share of the nation’selectricity, with no signs of slowing down.
An aircraft takes off from Los Angeles International Airport behind electric power lines at sunset as the California Independent System Operator announced a statewide electricity Flex Alert urging conservation to avoid blackouts in El Segundo, California on Aug. 31, 2022.
Needleman, co-chair of the Senate Energy and Technology Committee, is now reconsidering details of the state incentive program as he works onthe impact of data centers on the state’s electric grid. Mistakes now, he said, could lead to “a real crisis.” In South Carolina, lawmakers have started to question whether these massive power users should continue to receive tax breaks and preferential electric rates.
The Data Center Coalition, a trade group representing tech giants including Amazon, Google and Meta, is urging a veto. “Fundamentally, data is now the lifeblood of our modern economy,” he said. “Everything that we do in our personal and professional lives really points back to data generation, processing and storage.”Republican state Rep. Jay West said inducements such as reduced power rates are appropriate for major, transformational endeavors. He pointed to theWhile data centers boost local property taxes receipts, they don’t do much for the state, he said, and shouldn’t receive preferential rates.
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.
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