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Bill

H 5286

Data Center Moratorium

2025-2026 Regular Session Introduced by Lucas Atkinson and 19 co-sponsors

South Carolina proposes a temporary halt on new data center construction and major expansions to reassess the industry's economic and infrastructure impacts.

Member(s) request name removed as sponsor: Gilliam
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Bill Summary · H 5286

Legislative bill overview

H 5286 proposes a moratorium on new data center development in South Carolina, temporarily halting the approval of new facilities or significant expansions of existing data centers. The bill was introduced in February 2026 and is currently under review by the House Ways and Means Committee.

Why is this important

Data centers represent significant economic investment and job creation but also raise concerns about energy consumption, infrastructure demands, and tax incentives. A moratorium would pause development while the state presumably evaluates its data center policies, growth strategies, and community impacts.

Potential points of contention

  • Economic development trade-off: Data centers attract high-paying jobs and tax revenue; a moratorium could disadvantage South Carolina against competing states actively recruiting this industry
  • Duration and scope uncertainty: The bill's length and specific definitions of what constitutes a "data center" or triggering expansion are critical but unclear from available information
  • Energy and infrastructure concerns: Proponents likely cite power grid strain and water usage; opponents may argue these can be managed through regulation rather than prohibition

Compiled from official sources — confirm details with the bill’s official record.

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