A $2.8 billion data center project in Spartanburg, South Carolina, has sparked significant backlash from local residents following revelations about the scale and environmental impact of the development. The facility, currently under construction and expected to become operational in the third quarter of this year, was largely kept under wraps during initial planning stages, causing frustration among community members who say they were kept in the dark.

The project, led by NorthMark Strategies, a New York-based investment firm, is being developed through its subsidiary Valara Holdings. Spartanburg County officials referred to the initiative publicly as "Project MOC-1," describing it only as a "high-performance computing center." This terminology obscured the true nature of the development, which is a massive data center—a facility that demands substantial power and has raised environmental concerns.

An agreement signed in February 2025 between NorthMark and Spartanburg County included a 40-year fee-in-lieu-of-tax arrangement, which reduced the property assessment ratio for Valara Holdings to 4 percent, in addition to other tax credits. When NorthMark announced the center in April 2025, the company characterized the project as a redevelopment of the former Kohler manufacturing plant, continuing to use vague language that kept many residents unaware that a large data center was being established in their community.

The center is expected to create a surprisingly small number of jobs given its size and investment—officials estimate "at least 27" positions once the facility is fully automated and operational. This has added to local disappointment over the project’s transparency and community benefits.

Public concern escalated after NorthMark requested a substantial expansion of the data center’s power supply. The original facility uses about 50 megawatts, but the company has proposed increasing that to approximately 450 megawatts. This increase would necessitate the addition of a new power plant with 35 exhaust stacks ranging from 31 to 80 feet tall, capable of emitting hundreds of tons of pollutants annually. The proposed emissions include more than nine tons of formaldehyde—a known carcinogen—and 158 tons of fine particulate matter linked to respiratory and developmental health issues.

Residents expressed surprise and anger over the power plant expansion during two recent public meetings held on June 24 and 25—a virtual town hall hosted by NorthMark and an in-person forum convened by the state Department of Environmental Services at the Spartanburg Memorial Auditorium. Environmental groups, including the Southern Environmental Law Center, criticized the project's secrecy, with spokeswoman Emily Wyche calling the lack of transparency "stunning."

In response, state regulators extended the public comment period on the permit application until July 31. Spartanburg County has also joined other jurisdictions in imposing temporary moratoriums on new data center developments as officials and residents seek more oversight.

While Spartanburg County officials aimed to keep the project confidential during negotiations to secure this substantial investment, residents and environmental advocates argue that the community’s quality of life and environmental health were compromised in the process. The controversy highlights ongoing tensions nationwide as data centers, driven by surging demand for artificial intelligence and digital services, proliferate and raise complex local concerns over transparency, environmental impact, and economic trade-offs.