Proposed Data Center Sparks Backlash from Local South Carolina Farm

Penland Christmas Tree Farm owners fear environmental disruptions and water scarcity from new QTS data center campus

Published on Feb. 28, 2026

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A proposed $1 billion data center campus from QTS, a major data center provider, is facing pushback from the owners of the 95-acre Penland Christmas Tree Farm in York County, South Carolina. The Penland family, who have operated the farm since 1966, are concerned that the heat and water usage from the nine-building data center complex could dry out their trees and ruin their business. A petition against the data center's construction has garnered nearly 1,000 signatures from community members worried about the negative impacts on energy prices and the local water supply.

Why it matters

Data centers are increasingly being built in rural and suburban areas, often near small businesses and family-owned enterprises. This case highlights the tensions that can arise when large-scale tech infrastructure projects threaten the livelihoods of longstanding local enterprises like the Penland Christmas Tree Farm.

The details

QTS plans to build a $1 billion, nine-building data center campus near Lake Wylie in York County, South Carolina, right next to the 95-acre Penland Christmas Tree Farm that has been family-owned since 1966. The Penlands fear the heat output and water usage of the data center could dry out and damage their trees, potentially ruining their business. QTS claims the data center will use only 18,000 gallons of water per day and will not impact local water supplies, but the Penlands and community members remain skeptical.

  • QTS announced plans for the $1 billion data center campus in February 2026.
  • The Penland Christmas Tree Farm has been family-owned since 1966.

The players

Penland Christmas Tree Farm

A 95-acre family-owned Christmas tree farm that has operated in York County, South Carolina since 1966.

QTS

A major data center provider that is planning to build a $1 billion, nine-building data center campus near the Penland Christmas Tree Farm.

Steve Penland

The owner of the Penland Christmas Tree Farm, which has been in his family since 1966.

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What they’re saying

“The problem is that all that heat from that will go into the atmosphere. How much will it dry up the available water?”

— Steve Penland, Owner, Penland Christmas Tree Farm (WCNC)

“The negative impacts for communities - both local and regional, where data centers have been built have been well established at this point. Costs have skyrocketed for average Americans for years now and this data center will cause energy prices to climb even higher. We don't need that, and we certainly don't want that.”

— Sara (Change.org)

What’s next

The York County Council will hold a public hearing and vote on whether to approve the QTS data center project in the coming months.

The takeaway

This case highlights the tensions that can arise when large-scale tech infrastructure projects are proposed in rural and suburban areas, threatening the livelihoods of longstanding local businesses. It underscores the need for data center developers to carefully consider the environmental and economic impacts on surrounding communities.