Newberry County holds information session on data centers; consultants outline trade-offs on power, water and revenue

Newberry County hosted an informational session on March 1 to explain what data centers are and what decisions the county faces if it chooses to pursue development. Moderated by a county staff member, the meeting featured presentations from consultant Chris Lloyd of McGuireWoods Consulting and Cole Price of Central, the generation-and-transmission affiliate for South Carolina’s electric cooperatives.

Lloyd opened by framing the meeting as an evaluation of “what is right for Newberry County,” not as a project approval discussion. He cited a recent McKinsey estimate that global investment in data centers and supporting power could reach about $5.2 trillion through 2030 to explain why developers are pursuing new sites. Lloyd described data centers as large warehouse-style facilities containing rows of servers, then distinguished facility types — cloud/storage, transactional and AI — and developer models including hyperscalers, colocation providers and land‑bank developers.

Speakers said four infrastructure elements matter most: power, water, fiber connectivity and standby generators. Lloyd and Price both emphasized that power needs — and the mix of generation and renewable requirements — vary by operator. Price described a two-stage interconnection process: a preliminary planning/scoping study that typically takes 60–90 days and a later front-end engineering design; he said developers pay study costs and typically provide financial assurance for grid upgrades so those costs are not borne by other co-op ratepayers.

On water, Lloyd said data centers use water for cooling and that systems differ (open‑loop withdrawals vs. closed‑loop systems). He acknowledged documented cases where groundwater withdrawals affected local supplies and noted some states now limit groundwater use for data centers, requiring connection to municipal systems and water‑availability studies when appropriate.

Generators and emissions were a recurring concern. Lloyd and Price said backup generators are standard for reliability, that testing can create noise, and that generators (natural gas or diesel) produce emissions subject to state permitting. They noted communities can set stricter local noise or enclosure requirements (speakers cited a common planning threshold of about 60 decibels at the property line) and can restrict generator use through permitting or overlay rules.

Speakers addressed jobs and local revenue but cautioned about trade-offs. Lloyd gave a typical employment range for data centers (about 50–100 full‑time jobs per ~250,000 square feet, with average annual wages he cited at roughly $75,000–$90,000) and pointed to other counties that dedicated data-center property revenue to schools or tax relief. He urged officials to decide proactively whether revenue would lower tax rates, fund infrastructure, or be earmarked for one-time projects — noting that relying on volatile assessed values for ongoing operations can be risky.

On incentives, Lloyd summarized South Carolina’s sales-and-use tax exemption for data-center equipment: under current terms a company must create at least 25 jobs within five years, pay at least 150% of the state/county average wage for those positions and invest at least $50 million over five years to qualify; the exemption’s transcript-cited expiry date is 01/01/2032. He also explained that local fee‑in‑lieu (PILOT) arrangements are negotiated at the municipal or county level.

Throughout a question-and-answer period using pre-submitted questions, officials reiterated that many operational specifics are unknown because no end user has been identified. Price stressed that required grid upgrades are site-dependent and that developers are typically expected to cover interconnection and upgrade costs up front. Lloyd recommended that Newberry consider proactive zoning tools (overlay districts, buffers, lighting and noise limits, restricted generator operation hours), require clear permitting and reporting on emissions and water use, and plan for potential future repurposing of large facilities.

The session did not include a vote or formal decision. County staff noted the council has conducted two public reviews related to ordinance 03-01-2026, and presenters said the next steps are further feasibility studies (electric and water) and decisions by elected officials about whether to allow, limit or regulate data-center development in specific locations.