Data Centers in South Carolina

South Carolina – Cost-Effective & Resilient Infrastructure

Executive Summary

South Carolina is a compelling market for businesses that require cost-efficient, scalable infrastructure without the premium prices of primary data center hubs. The state's extremely competitive power costs and significant data center-specific tax exemptions deliver a direct, positive impact on operating expenses. This makes it an ideal location for disaster recovery, secondary production sites, and high-density compute workloads supporting the broader Southeastern United States.

South Carolina: At A Glance

Network & Connectivity Ecosystem

Carrier Density & Carrier Neutrality: As of September 2025, South Carolina has 4 main providers operating across 7 data centers. While not as dense as primary markets, these facilities offer access to a blend of national and regional carriers sufficient for most enterprise and disaster recovery needs.

Direct Cloud On-Ramps: There are no direct public cloud on-ramps within South Carolina as of September 2025. Businesses connect to cloud providers like AWS, Google Cloud, and Microsoft Azure by extending their networks to the major interconnection hub in Atlanta, Georgia. This is commonly achieved through private network interconnects or wavelength services from local carriers.

Internet Exchange Points (IXPs): Public peering is limited within the state. Most network interconnection occurs through private peering arrangements within local data centers or by connecting to major regional exchanges in Atlanta, which provides access to a global ecosystem of networks.

Bare Metal: Bare metal server solutions are available in the region, offering dedicated compute for performance-sensitive applications. Providers such as Hivelocity and phoenixNAP can service the area from nearby Southeastern data center hubs.

Power Analysis

Average Cost Of Power: The average industrial electricity cost in South Carolina is approximately $0.07/kWh, as of September 2025. This rate is among the lowest in the United States, providing a substantial operational cost advantage for power-intensive workloads like AI training or large-scale data processing.

Power Grid Reliability: The state's power grid is reliable, with over half of its electricity generated by nuclear power. This provides a stable and consistent energy baseload. Data centers in the state's main corridors are typically supported by redundant feeds from multiple substations to ensure high levels of uptime.

Market Access, Business & Tax Climate

Proximity To Key Business Districts: Data centers in South Carolina provide low-latency connectivity to the state's primary economic centers, including Columbia (government, insurance), Charleston (port logistics, aerospace), and the Greenville-Spartanburg area (manufacturing, automotive). This supports local enterprises and public sector operations.

Regional Market Reach: The state is strategically positioned to serve the entire Southeastern US. It offers an effective base for reaching customers and business partners in markets from Charlotte, North Carolina, to Savannah, Georgia, and Jacksonville, Florida, with minimal delay.

Tax Advantage For Data Centers: South Carolina offers a very favorable tax climate for data center operators and tenants. The state provides statutory sales and use tax exemptions on computer equipment, software, and electricity, which dramatically lowers both initial capital investment and ongoing operational costs.

Natural Disaster Risk

South Carolina has a High natural disaster risk profile, with a FEMA National Risk Index score of 88.80 as of September 2025. Careful site selection and facility engineering are essential to mitigate potential impacts.

The primary risks for the state include:

• Hurricane & Strong Wind
• Riverine Flooding
• Ice Storms
• Drought
• Earthquake (particularly in the coastal region near the Charleston seismic zone)
• Tornadoes