Nancy Mace

Rep. Nancy Mace, R-S.C., on Monday called for a one-year moratorium on new data center construction in her home state, arguing the rapid expansion of artificial intelligence infrastructure is driving up electricity demand and threatening to raise utility bills for residents and small businesses.

Mace, who is running for governor of South Carolina in a crowded Republican primary, said the state has become a hub for large-scale technology projects requiring enormous amounts of electricity to power AI systems and cloud computing operations.

"South Carolina is not Big Tech's personal power grid," Mace said in a statement. "These companies are planting massive data centers across our state, driving up energy demand, and leaving families and small businesses to pick up the tab.

"South Carolinians are already stretched thin," she added. "The last thing they need is a higher electricity bill subsidizing Big Tech's bottom line."

Mace said the proposed one-year pause would allow state lawmakers to establish regulations requiring companies to fully cover the energy and infrastructure costs associated with their projects.

"A one-year moratorium gives South Carolina the chance to get this right," Mace said. "When it is over, the rules are simple: data centers pay their own way or they do not come here."

In a post on social media, Mace also said she opposes the use of eminent domain connected to energy or infrastructure expansion tied to data center development, referencing ongoing disputes in neighboring Georgia.

South Carolina has emerged as a hub for data center development because of available land, tax incentives, and access to energy infrastructure.

Industry estimates show the state has at least 44 operating or planned data centers, including an $800 million Meta facility under construction in Aiken County. Meta said the 715,000-square-foot facility will support AI workloads and serve as the company's 22nd U.S. data center.

The boom has sparked backlash from residents and lawmakers concerned about electricity costs, water usage and land development.

In South Carolina, local officials in Colleton County advanced a temporary moratorium earlier this month on a proposed 1,000-megawatt data center project after residents raised concerns about environmental impacts and rising power demand.

State lawmakers have also introduced legislation that would halt approvals for new data centers until January 2028. The proposal remains in committee in the South Carolina House.

The debate reflects a broader national political divide over the rapid expansion of AI infrastructure as technology companies race to expand computing capacity.

In March, Sen. Bernie Sanders, I-Vt., and Rep. Alexandria Ocasio-Cortez, D-N.Y., introduced legislation calling for a nationwide pause on AI data center expansion pending additional safety and environmental standards.

Sen. Josh Hawley, R-Mo., has also backed bipartisan legislation aimed at preventing utilities from shifting energy costs associated with data centers to residential consumers.

Similar moratorium efforts have emerged in more than a dozen states as communities push back against large-scale AI-related projects.