DC Blocks warns proposed siting rules and financial assurances could stall data center development

Chris Gatch, executive vice president at DC Blocks, told the subcommittee that predictable processes are paramount when companies evaluate multibillion‑dollar investments. Reading from a prepared statement, Gatch urged "regulatory certainty, not regulatory complexity," and said new statewide permitting offices and PSC certificate proceedings can add months of uncertainty that deter investment.

Gatch recommended five priorities for the committee: a predictable permitting timeline; PSC‑established transparent load tariff structures to ensure data centers bear infrastructure costs; fair allocation of financial risk through performance‑based assurance models (rather than large upfront deposits that only hyperscale firms can meet); exploration of a large‑load choice framework to allow direct procurement by large customers; and preserving local zoning authority for land‑use issues.

He warned that current utility deal structures — long take‑or‑pay contracts, high deposit thresholds and long commitment periods — raise entry barriers for mid‑market independent developers. "In practice, only the largest hyperscale companies like Google, Microsoft, and Amazon can meet those thresholds," Gatch read, and he asked the legislature to consider tools such as rolling guarantees tied to unrecovered cost and calibrated exit fees that would lower barriers while protecting ratepayers.

Clark Gillespie, who spoke in support of DC Blocks’ points, said the industry typically seeks to locate where it is wanted and that "good site selection" is central to avoiding communities being overburdened by infrastructure demands. Gatch also noted DC Blocks operates cable landing and fiber network assets in the state, pointing to the recent Nuvo subsea cable landing in Myrtle Beach as part of that connectivity.

The committee invited DC Blocks to submit written comments and additional detail on specific policy and tariff proposals for the record.