zoning

What South Carolina’s 2025-2026 Legislative Session, the Spartanburg County Data Center Litigation and the Silfab Controversy Signal for Real Estate Attorneys

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South Carolina’s 2025-2026 legislative session demonstrated that land use and zoning issues are becoming increasingly prominent in economic development, environmental regulation, and local governance. While relatively few zoning-related bills were enacted, several significant proposals and the ongoing Data Center litigation in Spartanburg County and the Silfab Solar controversy in York County reveal growing tension between economic growth initiatives and community oversight. For South Carolina real estate attorneys, these developments may foreshadow a more active and contentious zoning landscape in the years ahead.

Legislative Efforts to Expand Zoning Oversight

One of the most notable zoning bills introduced during the session was Senate Bill 530. The bill proposed adding Section 6-29-815 to the South Carolina Code and would have required development activity to cease immediately whenever a zoning authority determined that a property’s current or proposed use was not permitted under the applicable zoning classification. The legislation would have invalidated previously issued permits and suspended construction during administrative and judicial appeals unless a court ordered otherwise. Although the bill did not become law, it reflected increasing legislative concern regarding projects that proceed while zoning disputes remain unresolved.

For attorneys representing developers, lenders, and title insurers, S.530 is noteworthy because it would have significantly altered reliance interests associated with permits and approvals. The proposal suggests that lawmakers are closely watching disputes involving local zoning interpretations and vested rights.

The Rise of Data Center Regulation

A major emerging issue during the session was the regulation of data centers. South Carolina continues to attract technology and infrastructure investment, but lawmakers have begun grappling with the substantial impacts data centers can have on utilities, water resources, transportation infrastructure, and surrounding land uses.

Two significant bills were introduced:

  • S.867, the Data Center Development Act, would establish a state permitting framework administered through the Department of Environmental Services and require siting permits, infrastructure adequacy assessments, environmental impact reviews, water-efficiency standards, operational reporting, and coordination with local land-use planning.
  • S.902, the Data Center Siting Act, proposed a similar approach but would place substantial authority with the Public Service Commission, requiring certification before a data center could begin operations and establishing standards addressing infrastructure, environmental impacts, utility costs, buffers, and local planning considerations.

Neither bill became law during the session. However, both are significant because they recognize that traditional local zoning tools may be insufficient to address the statewide implications of large-scale data center development. The introduction of multiple bills targeting the same issue suggests a growing consensus that additional regulatory oversight is likely forthcoming.

For practitioners, future data center projects may require navigating both traditional zoning approvals and additional state-level review processes. Attorneys should anticipate increased scrutiny of utility capacity, water consumption, environmental impacts, and compatibility with surrounding land uses.

The Spartanburg County Data Center Litigation

Another development worth watching is the ongoing litigation involving the proposed Valara Holdings/NorthMark data center project in Spartanburg County. The dispute highlights many of the same issues that lawmakers attempted to address through the proposed data center legislation.

The approximately $3 billion project includes a large-scale data center campus and a proposed 450-megawatt natural gas-fired power generation facility intended to serve the development. Local residents and advocacy groups have challenged both the permitting process and the scope of regulatory review applied to the project.

One lawsuit, filed by the Southern Environmental Law Center on behalf of Concerned Citizens of Spartanburg County, alleges that the project was processed through permits typically used for minor land development rather than being subjected to the county’s major land development review procedures. Opponents contend that classifying the project in this manner limited opportunities for public participation and avoided the level of review ordinarily required for developments of comparable scale.

A separate proceeding before the South Carolina Public Service Commission has raised another significant question: whether the project’s proposed 450-megawatt power plant qualifies as a “major utility facility” subject to review under South Carolina’s Utility Facility Siting and Environmental Protection Act. Project opponents argue that the plain language of the statute requires PSC approval before construction can proceed, while the developer maintains that the generation facility is intended solely for private, on-site use and therefore falls outside the Act’s jurisdiction.

The litigation is particularly important because it reflects growing public concern regarding data centers’ impacts on electricity demand, water usage, noise, environmental resources, and local infrastructure. It also demonstrates that even where local zoning approvals have been obtained, affected citizens are increasingly willing to pursue administrative and judicial challenges when they believe regulatory oversight has been insufficient.

For real estate practitioners, the Spartanburg matter provides a practical example of why future data center developments may require more than conventional zoning and land-use analysis. Questions involving utility regulation, environmental permitting, public participation requirements, and state-level siting authority are increasingly becoming intertwined with local development approvals. Notably, many of the issues now being litigated mirror the concerns addressed in proposed legislation such as the Data Center Development Act (S.867) and the Data Center Siting Act (S.902), suggesting that future legislative efforts may be influenced by the outcome of these disputes.

The Silfab Solar Controversy: A Real-Time Zoning Lesson

My colleague, Vance Brabham provided a detailed description of the Silfab Solar chemical spill and zoning implications in a blog article in May, 2026.  No recent South Carolina development has highlighted zoning challenges more vividly than the ongoing controversy surrounding the Silfab Solar facility in York County.

The dispute originated with York County’s determination that solar manufacturing was permitted within the facility’s light industrial zoning classification. A subsequent York County Board of Zoning Appeals decision concluded that solar panel manufacturing should instead be treated as a heavy industrial use. Litigation followed concerning the applicability of that determination to Silfab’s project.

The matter intensified in March 2026 when the facility experienced two separate chemical incidents, including releases involving potassium hydroxide and hydrofluoric acid. Following the incidents, the South Carolina Department of Environmental Services ordered the facility to cease operations pending further investigation of safety and chemical-handling protocols.

The response from state and local officials was particularly notable from a zoning perspective. Attorney General Alan Wilson publicly questioned the zoning and permitting process that allowed the facility to be located near Flint Hill Elementary and Middle Schools and demanded information from York County regarding the approvals issued to Silfab. The Attorney General also called for transparency regarding the project’s siting and safety reviews.

York County officials responded by defending the Planning Department’s actions, stating that all zoning approvals and permits were issued in accordance with applicable ordinances and that county staff had provided a zoning verification letter concluding that the use was permissible at the site. County officials further asserted that the county had followed established procedures throughout the approval process.

The Silfab matter demonstrates how zoning decisions can evolve from local administrative determinations into matters of statewide political and public concern, particularly when environmental and public safety issues arise.

What Does This Foreshadow for South Carolina Zoning?

Several themes emerge from the 2025-2026 session and the Silfab controversy.

First, state officials appear increasingly willing to scrutinize local zoning decisions when projects have significant environmental, infrastructure, or public safety implications.

Second, large-scale industrial and technology projects are likely to generate pressure for additional state-level permitting and siting requirements. The data center bills demonstrate that legislators are considering regulatory models that supplement local zoning rather than relying on it alone.

Third, the emphasis on permit validity, vested rights, and enforcement reflected in S.530 suggests that future legislation may seek to limit the ability of disputed projects to continue operating while zoning challenges remain pending.

Finally, the political attention surrounding Silfab indicates that land-use decisions involving schools, residential communities, environmental concerns, and industrial development will likely face heightened public scrutiny moving forward.

Although the 2025-2026 session did not produce sweeping zoning reform, it revealed an unmistakable trend: South Carolina is entering a period of increased attention to land-use regulation. The debates surrounding Silfab Solar in York County, the proposed data center legislation, and the ongoing Spartanburg County data center litigation all point toward greater scrutiny of large-scale projects whose impacts extend beyond traditional zoning considerations. Legislators, regulators, local governments, and courts are increasingly being asked to balance economic development with environmental protection, infrastructure capacity, public participation, and community compatibility. For South Carolina real estate attorneys, these developments suggest that future zoning disputes will involve not only local land-use ordinances but also broader questions of state oversight, permitting authority, and public accountability.

A Zoning Battle Ignites in Fort Mill over Silfab Solar

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There is yet another hot button zoning conflict in the Palmetto state that has attracted much public attention in Fort Mill, SC. It has spawned several lawsuits, an Attorney General inquiry, and legislators filing bills up at the State House that certainly would have major impact on S.C. dirt lawyers if they were to pass. 

The controversy centers around Silfab Solar’s ongoing construction of a solar panel manufacturing factory near Fort Mill, SC. The company is renovating a warehouse in an existing industrial park there that is jointly operated by York and Chester counties. The industrial park is located near several residential developments, but most notable in recent press coverage is the elementary school located on the adjacent parcel to the proposed Silfab site.  

In 2022, in connection with recruitment by the S.C. Department of Commerce, Silfab requested zoning verification from York County that its proposed operation would be in compliance with local zoning ordinances. The York County zoning staff ultimately determined that the manufacture of solar panels fit within the permitted use of “computer and electronic productions manufacturing” which was permitted in the “Light Industrial” zoning classification assigned to the industrial park. Notably, there was no appeal of the zoning verification.

With the zoning verification in hand, Silfab decided to move forward with the project and entered into a fee in lieu of tax (FILOT) Agreement with York County. The County passed an ordinance approving the FILOT agreement in September 2023, in effect ratifying the proposed project at its proposed location. Silfab thereafter obtained building and environmental permits and started construction at the site

But at some point in the process, the public became aware of the project and that hazardous gases and chemicals would be used as part of the manufacturing process of the panels. As concerns grew, a neighboring landowner filed a request for a zoning interpretation inquiring whether solar panel manufacturing was actually a permissible use under the zoning ordinance. In 2024, the York County Board of Zoning Appeals (BZA) found that solar panel manufacture is not permitted within the Light Industrial zoning classification, which effectively overruled the prior determination of the zoning staff. 

Silfab appealed the BZA ruling but construction has continued under the existing zoning verification and permits. In response to growing public outcry, York County issued statements that its interpretation of state law and its ordinance is that BZA zoning interpretations only apply prospectively and that the County does not have authority to revoke previously given permits or to issue a stop work order.

But the controversy really expanded into an issue of statewide concern in March when Silfab reported two separate chemical leaks within a three day period. While the leaks were contained and were reportedly of no danger to the outside community, DHEC ordered Silfab to pause its use of previously permitted chemicals pending a review. Silfab has since entered into an agreement with DHEC not to bring any more dangerous chemicals into its site or proceed with manufacturing until the investigation is completed.

The leaks also drew the attention of Attorney General Alan Wilson who issued inquiries to York County concerning the propriety of the zoning approval and to Silfab concerning the cause and extend of the leaks. The gubernatorial candidate appears to be closely monitoring the situation as events unfold.

The South Carolina General Assembly is also involved in the debate. Local legislators have introduced proposed bills in the House and Senate that would amend the Code to give Counties the power to revoke permits and stop work on projects when the project is found to be in violation of zoning ordinances. 

While these bills are unlikely to pass before the end of the current session, there have been a number of other bills advanced in the State House in recent years that have sought to give local authorities the ability to have something of a “do-over” concerning prior approvals of development. Often these bills have been provoked by growing public outrage over major projects that were passed by local authorities without much initial fanfare.  

While the Court’s pending review of the BZA appeal may result in restoring the original zoning interpretation and making much of the present controversy moot, there is always the chance of additional appeals. Further, with the national debate over data centers expanding into South Carolina in recent months the salience of the Silfab controversy may impact future debates concerning whether government entities should be able to change their mind about prior zoning decisions even after property owner’s have formed plans and made investments relying upon them. 

SC Supreme Court (again) upholds Myrtle Beach’s “family friendly” zoning overlay district

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In May, this blog discussed Ani Creation, Inc. v. City of Myrtle Beach,* a case where the South Carolina Supreme Court upheld an ordinance that imposed a zoning overlay district intended to bolster the “family friendly” nature of Myrtle Beach’s historic downtown area. The ordinance targeted smoke shops and tobacco stores and the merchandizing of tobacco paraphernalia, products containing CBD, and sexually oriented material.

The opinion begins, “The City of Myrtle Beach (the city) is a town economically driven and funded by tourism.” The facts indicate that the city received frequent criticism from tourists and residents that the proliferation of smoke shops and tobacco stores repelled families from the area. The city passed a comprehensive plan that aimed at increasing tourism and concluded that all businesses needed to encourage and support a “family beach image”.  The city passed an ordinance which created a zoning overlay district known as the Ocean Boulevard Entertainment Overlay District that encompassed the historic downtown area.

The prohibited uses in the district were declared immediately nonconforming when the ordinance was passed on August 14, 2018, but an amortization period was allowed which gave affected businesses until December 31, 2019, to cease the nonconforming portions of their businesses.

The zoning administrator issued citations to the nonconforming businesses. Nine of the 25 affected stories appealed to the Board of Zoning Appeals which found (1) it did not have jurisdiction to declare the ordinance unconstitutional; (2) it could not grant a use variance because it would allow the continuation of a use not otherwise allowed in the district; and (3) the businesses were engaged in one or more of the prohibited uses. On appeal, the circuit court affirmed the Board’s opinion, finding the appellants’ 25 grounds for challenging the ordinance meritless. The businesses appealed directly to the South Carolina Supreme Court.

The appellants raised a “host” of constitutional and procedural challenges, all of which fell on deaf ears at the Supreme Court. The Court held that the ordinance was a valid exercise of the city’s police powers. According to the Court, municipal governing bodies clothed with authority to determine residential and industrial districts are better qualified by their knowledge of the situation to act upon such matters than are the courts, and they will not be interfered with in the exercise of their police power to accomplish their desired end unless there is a pain violation of the constitutional rights of the citizens.

The Appellants petitioned for a rehearing and in an opinion re-filed on June 28, the court again affirmed the Court of Appeals.

A comment on the Dirt Listserv said, “S. Carolina is OK with cancel culture after all.”  A store selling sexually oriented materials was removed from Garners Ferry Road in Columbia (about three miles from my house) using similar legal arguments. I was delighted to see that store torn down before I had to explain it to my grandchildren! But I do understand the “cancel culture” argument. What do you think?

*South Carolina Supreme Court Opinion 28151 (April 19, 2023, Re-filed June 28, 2023)

Redevelopment of golf courses might be possible in South Carolina

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In April, this blog discussed the redevelopment of two Horry County golf courses. The North and South courses at Deer Track Golf Resort in Deerfield Plantation have been closed for more than ten years and are finally being redeveloped as residential lots. Adjacent lot owners waged class actions in Horry County seeking to have the use of the properties in question restricted to golf courses or open spaces. While these battles were being waged in court, nature attempted to reclaim the properties. One property owner testified that his views changed from overlooking a manicured golf course to overlooking a “sea of weeds”.

Similar battles have been successful in other parts of the country. The cases are fact intensive and turn on the law of implied easements, which, of course, varies widely from state to state. Plats showing golf courses may provide rights in adjacent lot owners, depending on the recorded documents, the sales program and the law of implied easements in the location.

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I wanted to invite those interested in this area of the law to take a look at an article published in June by www.citylab.com. The article, written by Nolan Gray, is entitled “Dead Golf Courses Are the New NIMBY Battlefield”. In the interest of full disclosure, I had to Google NIMBY. This acronym stands for “not in my back yard”.

The article states that golf is dying, according to many experts. One study cited in Citylab’s article found that the number of regular golfers fell from 30 to 20.9 million between 2002 and 2016. The thinking is that the fall of Tiger Woods may have led to much of this gloom and doom around golfing. But Mr. Gray believes that the bigger story involves the sport’s aging demographics and the fact that millennials are not interested in the expensive, slow sport that provides few health benefits.

Golf courses and golf clubs across the country are closing, leaving the land to be redeveloped. Mr. Gray’s article states that the average 18-hole golf course sits on 150 acres, property that could host around 600 new single-family detached homes. Add to this mix the fact that many golf communities were built in areas with good schools and work opportunities. These properties are, therefore, particularly valuable in areas where housing inventory is a challenge.

So, what prohibits the development of these properties into residential subdivisions? Zoning is one of the challenges. Many golf courses are zoned for commercial uses to accommodate clubhouses, restaurants, pro shops and bars. But the main stumbling block, according to Mr. Gray, is the NIMBY attitude of neighbors. Residents near golf courses prefer that the properties be turned into parks, open spaces and natural preserves.

Let’s look, for example, at the Deerfield Plantation cases. First, the facts: The golf courses and surrounding residential subdivisions were originally developed beginning in the late 1970’s. The plats contained notes to the effect that the streets were dedicated for public use but the golf courses were to be maintained privately and were specifically not dedicated to public use.

The covenants gave the lot owners no rights, property, contractual, or otherwise, in the golf courses. A Property Report that was delivered to all prospective lot purchasers described the costs of golf memberships, which were not included in lot prices, and stated that to be allowed to use the golf courses, members would be required to pay initial dues and annual dues and fees. The real estate agents made it clear during the sales program that the mere purchase of a lot did not give a lot owner any right or entitlement to use the golf courses. The deeds of the lots did not convey any easements or other interests in the golf courses.

One plaintiff, who was also a real estate agent, testified that he was never told the golf courses would operate in perpetuity and that the real estate agents never told other potential purchasers that the golf courses would always exist on the properties.

What caused the golf courses to fail? When the golf courses opened, there were 30 – 40 golf courses in the Myrtle Beach area. By the time the golf courses closed, there were nearly 125 courses. Property taxes in the golf courses increased from $7,800 per year to $90,000 per year.  And then the economy tanked. These three factors have occurred across the country to varying extents.

Now, let’s look at South Carolina law. In one of the cases, a 38-page Order of Thomas J. Wills, Special Referee, examined the law of implied easements in South Carolina. I’m summarizing and eliminating the citations for this brief discussion.

The Order states that implied easements are not favored by the courts in South Carolina and must be strictly construed. The intent of the parties controls the existence and scope of implied easements, and the best evidence of that intent is the recorded documents. While case law in South Carolina is clear that lot owners in subdivisions hold easements in streets shown on plats by which their lots are sold, the order states that this rule does not extend beyond access, which is necessary and expected for residential purposes. Finally, the order states that no implied easements in views, breezes, light or air exist in this state.

Finally, these golf courses will be redeveloped into new residential subdivisions. Will we see more of this litigation in South Carolina?  Probably. While the law in South Carolina appears generally to favor redevelopment in these cases, there is no doubt that the facts in some of the situations may give rise to implied easements in adjacent lot owners, even in the face of our law. As long as we have NIMBY attitudes of those who live near defunct golf courses, we will continue to see litigation in this area.