A bill

 

TO AMEND THE SOUTH CAROLINA CODE OF LAWS SO AS TO ENACT THE "SOUTH CAROLINA DATA CENTER RESPONSIBILITY ACT"; AND BY ADDING CHAPTER 81 TO TITLE 39 SO AS TO ENSURE THAT DATA CENTERS OPERATING IN SOUTH CAROLINA DO SO RESPONSIBLY, SUSTAINABLY, AND WITHOUT BURDENING TAXPAYERS.

 

Be it enacted by the General Assembly of the State of South Carolina:

 

SECTION 1.  This act may be cited as the "South Carolina Data Center Responsibility Act."

 

SECTION 2.  Title 39 of the S.C. Code is amended by adding:

 

CHAPTER 81

 

Data Centers

 

    Section 39-81-100. For purposes of this chapter:

       (1) "Data center" means any facility over five thousand square feet that houses computer systems, servers, networking equipment, or storage systems, whether for commercial, governmental, or private use, and includes co-location centers and modular or containerized data units located on the same parcel.

       (2) "Energy independent" or "complete energy independence" means that one hundred percent of the facility's energy demand, including backup power, cooling, and ancillary load, is generated on site without any physical or contractual connection to state-funded utilities, public power grids, or off-site generation systems, except as required for emergency protection systems.

       (3) "Closed-loop water or liquid cooling system" means a sealed cooling process in which the same water or coolant circulates continuously without withdrawal from or discharge into municipal systems, groundwater sources, or surface waters, except for de minimis losses defined by regulation.

       (4) "Full-time employee" means a W-2 employee of the operator who works a minimum of thirty-five hours per week on site at the facility and is not a temporary worker, independent contractor, or employee of a staffing agency.

       (5) "Facility floor space" means all interior square footage dedicated to computing equipment, cooling infrastructure, mechanical rooms, electrical rooms, and support systems, including mezzanines and conditioned auxiliary areas.

 

    Section 39-81-110. (A) A data center must operate with complete energy independence.

    (B) A data center may not be physically interconnected to, receive power from, or participate in load-swap, demand-response, or standby agreements with state-funded utilities or any public power grid.

    (C) Backup generators must be part of the on-site energy system.

    (D) Fuel deliveries for generators may not constitute more than ten percent of annual energy consumption.

 

    Section 39-81-120. (A) Notwithstanding any other provision of law, a data center may not receive direct or indirect state or local taxpayer-funded incentives, grants, tax abatements, subsidies, utility rate reductions, or infrastructure improvements provided primarily for the benefit of the facility.

    (B) This prohibition applies regardless of whether benefits are provided to an affiliate, parent company, subsidiary, contractor, or related entity.

    (C) All permitting, infrastructure, and operational costs must be fully funded by the data center.

 

    Section 39-81-130. (A) A data center must employ a closed-loop water or liquid cooling system resulting in zero net water withdrawal and zero wastewater discharge.

    (B) A facility may not extract groundwater, use municipal water for cooling, or employ evaporative or open-loop cooling systems.

    (C) A facility must submit annual closed-loop certification including third-party verification and documentation of water losses, chemical treatment processes, and fluid replacement volumes.

 

    Section 39-81-140. (A) A company that operates a data center is strictly liable, without the need to prove negligence, for:

       (1) environmental damage including, but not limited to, contamination of the soil, water, air, or wildlife habitat; and

       (2) public health impacts arising directly or indirectly from the data center's operations.

    (B) Liability may not be transferred, indemnified, shielded, or assigned to third-party contractors, shell entities, or special purpose subsidiaries.

    (C) A company must maintain environmental bonding or liability insurance in an amount not less than fifty million dollars, or a greater amount set by regulation based on facility size.

    (D) Enforcement authority for this section is vested in the Department of Environmental Sciences (SCDES).

 

    Section 39-81-150. (A) A data center must employ a minimum of one full-time, on-site employee for every one thousand square feet of facility floor space.

    (B) Remote workers, contract workers, temporary workers, or workers employed by another entity may not count toward the required ratio.

    (C) On-site employees must be present during all operational hours, including emergency operations.

 

    Section 39-81-160. By January first each year, a company that operates a data center must submit to the Speaker of the House of Representatives, the President of the Senate, and the Governor a report detailing:

       (1) energy production and consumption;

       (2) water usage metrics and closed-loop verification;

       (3) environmental monitoring; and

       (4) employment compliance.

 

    Section 39-81-170. (A) A company who owns a data center that knowingly and wilfully violates this chapter is subject to an administrative fine in the amount of one thousand dollars for each violation. 

    (B) In cases of repeated violations, the Department of Consumer Affairs may suspend the operating permit of a data facility or shut down the facility.

 

SECTION 3.  This act takes effect upon approval by the Governor.

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