NEWBERRY COUNTY — During the April 15 Newberry County Council meeting, council held a public meeting related to Project Altair. Members of County Council and staff shared during the meeting that this proposed Economic Development project would allow Newberry County to option the remaining acreage of the Mid-Carolina Commerce Park II to a developer who intends to lease the facility to a data center tenant. If those plans are successful, the prospect would purchase the remaining acreage and construct several buildings, constituting a small-to medium-sized data center. Santee Cooper is currently conducting a study to determine whether the electrical grid in the area can support such a facility.
Recognizing that there are many questions from the community, Council is working to organize a Community Informational Session with subject matter experts prior to a final reading. The Newberry Observer reached out to County Administrator Ted Luckadoo to address some of the community’s questions and concerns. Answers have not been edited, however answers were reviewed for grammatical purposes.
1. For those who are unaware, what is a data center and what exactly does it do?
Simply stated, a data center stores, transports and processes information. If you use a computer or a cell phone, you already use data centers, even if you don’t realize it. If you use AI (Artificial Intelligence), you use data centers in a big way. At this stage, no specific type of data center has been identified/presented. This will likely be determined during due diligence based on the capabilities that can be supported. We will continue working with the developer to ensure the selected facility aligns with the available infrastructure and services, including electric and water/sewer utilities.
2. The general consensus among residents that I have seen is that they do not want to see a data center come to Newberry County. What are the pros and cons of having a data center?
We believe that many concerns are warranted regarding data centers and recognize that older data centers have had plenty of negative impacts in other areas where they are located. However, it is also important to understand that many advancements have been made over the years to improve data center processes and reduce negative impacts. This is exactly why we intend to hold a public information session, so we can ensure the facts are presented on modern data centers and what impact they may or may not have to an area, creating realistic expectations. This information session is critical for the public to understand the pros and cons. It would not be in one’s best interest to rely on just the pros and cons of older data centers, which is mostly what you will find on the internet, but understand the pros and cons of newer data centers, which our panel will address in their presentation and information session. They will be able to address concerns related to water usage, electrical usage, noise, among other concerns and highlight advancements that have been made in those areas. They can also address the pros of modern data centers and how they can positively impact an area. At this time, we will defer detailed discussion of the pros and cons to the panel of data center experts, who bring deeper industry knowledge and direct experience
3. Some citizens have claimed there has been a lack of transparency with Project Altair, citing that citizens were not provided any information about the nature of the project or how it could possibly impact the community until the statement that was read during the April 15 meeting. What would you like to say to citizens to address these concerns?
As with most economic development projects, a degree of confidentiality is necessary in the early stages. As the process has advanced, Council and staff have worked to balance transparency with confidentiality by sharing additional information as appropriate. Council intentionally delayed final reading to provide the public with more time to become informed and offer input. It is our intent, based on the initial feedback from the residents, as we expected, to have a public information session related to data centers that will allow the public to attend, hear from experts on data centers, and submit questions that they would like answered by the experts.
Data centers, like other technologies, have evolved to address challenges. Modern facilities incorporate improvements in environmental performance, noise reduction, and energy management, particularly during peak demand. While not advocating for data center development, our role is to ensure the public is accurately informed about current data center practices as this process moves forward.
4. Citizens have also expressed their concerns that the area in question could be used for something other than a data center. So, why consider bringing a data center to Newberry County?
Newberry County does not target data centers, nor have we actively recruited a data center. This project came to us, and staff have worked with the prospect to create a pathway where the prospect can control the property, perform the necessary testing and studies to determine whether this site can even support a data center. At this point, we don’t know if a data center will even be a legitimate possibility in our community. We feel it is important knowing that we have an interested project, who can contribute financially to the County, to at least ensure that due diligence is performed to determine whether it is of benefit or not a right fit. We understand data centers are a part of the future and growing demands for them will not decrease but will only increase. We are using this potential project as an opportunity to educate ourselves about the feasibility and impacts for not only this project, but others that will come knocking in the future.
5. During the April 15 meeting, it was communicated to residents that Santee Cooper is currently performing a study to see if the electrical grid in the area would be able to support a facility. Some citizens are concerned that with power and tax bills already being through the roof, that a data center would ruin the electrical grid and become more expensive. What are your thoughts on concerns that this will negatively impact citizens in Newberry financially?
These are common and valid concerns, and we are actively evaluating them. Safeguards can be implemented to mitigate potential impacts. In general, adding a large electric customer increases utility revenue rather than reducing it. For more detailed information regarding grid impacts and potential effects on electric rates, we would have to defer to Newberry Electric Coop. We will continue to work closely with them throughout this process, and on any future projects, to ensure potential impacts are fully understood.
6. How would a data center affect the county environmentally as well as in regard to infrastructure? With added traffic to the roadways this could not only add wear and tear to our roads but add more noise and disruptions to neighborhoods and areas like the Mid-Carolina Country Club where people go to enjoy its amenities.
For the most part, data centers are low-impact developments. The primary environmental concerns are noise and emissions. Noise can be mitigated with strategic construction, berms and buffers. If there is no electric generation component, there will be no regulated emissions. Even if there are natural gas generators on site, natural gas is the cleanest burning fossil fuel that exists. In any case, we would have to get a handle on the emissions and make sure they are low enough to be acceptable. Data centers do not add much traffic to roads. Far less than a manufacturing facility, and even less than a warehouse/distribution center. Plus, data centers will send almost zero new students to local schools, which is usually a concern with projects that create lots of jobs.
7. If a data center does not come to Newberry County, would the remaining acreage in that area be used to bring in another small to medium sized industry or will the county find another use for it?
This current ordinance would allow the data center developer the time and space they need to conduct the due diligence necessary to determine if this site can even support a data center. If it is determined that a data center cannot be supported, we would continue to market this location within our Mid-Carolina Commerce Park to a suitable industry. The current use for this property is industrial and will remain industrial despite the outcome of this process.
8. Would you like to provide any additional comments or information that would help residents better understand this discussion?
I’d love the opportunity to caution the public that there is a lot of misinformation about data centers on social media. The Newberry County Council and staff would not actively take steps to bring bad developments to the community. Our responsibility is to improve the economy/community for county residents. The current process underway does not mean a data center is coming. This current ordinance is merely a land option for the property, which is needed to have feasibility studies completed to determine viability. Without the land option, a power study cannot be performed by the developer. If the developer decides that the project is feasible following the studies and due diligence, they will then have to find a data center tenet to lease the space they intend to construct. It is our intention that, if discussions with a data center developer progress to the point of considering incentives, any such incentives would require approval by County Council through an ordinance. This process includes three readings and a public hearing, at which time the proposal would be clearly identified as related to a data center project. While it is possible that a developer could proceed without requesting incentives, it is unlikely that they would do so.
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