Data Centers in South Carolina

South Carolina – Cost-Effective Power & Strong Incentives

Executive Summary

South Carolina is an emerging data center market ideal for organizations prioritizing low operational costs and robust tax advantages. The state serves as a compelling alternative to primary hubs like Northern Virginia or Atlanta for disaster recovery sites and regional content delivery. Its aggressive, data center-specific tax incentives and competitive power rates directly reduce capital and operational expenditures, improving the total cost of ownership for critical workloads.

South Carolina: At A Glance

Network & Connectivity Ecosystem

South Carolina offers a solid foundation for regional connectivity, with access to major fiber routes connecting Atlanta to the north. While not as dense as primary markets, the ecosystem provides sufficient diversity for most enterprise and disaster recovery needs.

Carrier Density & Carrier Neutrality: The state features 7 data centers with access to over 4 unique network providers, as of September 2025. Carrier-neutral facilities provide access to a mix of national and regional carriers, ensuring redundant connectivity options.

Direct Cloud On-Ramps: There are no direct public cloud on-ramps within South Carolina. Secure, private connectivity to AWS, Google Cloud, Microsoft Azure, and other major clouds is achieved via dedicated network extensions to nearby interconnection hubs in Atlanta, GA, and Ashburn,VA.

Internet Exchange Points (IXPs): Public peering is limited within the state. Most network peering is conducted privately between carriers or established within major regional exchanges in Atlanta.

Bare Metal: Bare metal server solutions are available in the region, providing on-demand, dedicated compute. Providers like Hivelocity offer bare metal deployments from nearby markets, accessible with low latency.

Power Analysis

South Carolina's power infrastructure is a significant advantage, characterized by low costs and a stable supply backed by a high percentage of nuclear generation.

Average Cost Of Power: Industrial power costs average around $0.07/kWh, as of September 2025, which is highly competitive nationally. This pricing structure offers substantial operational savings for high-density computing and large-scale deployments.

Power Grid Reliability: The state's power grid is reliable, with approximately 55% of its electricity generated from nuclear power. This provides a consistent and stable baseload power source, which is critical for maintaining data center uptime. Major data center sites are typically supported by redundant utility feeds from separate substations.

Market Access, Business & Tax Climate

The state's business-friendly environment, strategic location, and targeted incentives make it an attractive location for data center investment.

Proximity To Key Business Districts: Data centers are located to serve key economic centers like Charleston, Columbia (the state capital), and Greenville. These facilities support major industries including advanced manufacturing, aerospace, healthcare, and state government operations.

Regional Market Reach: South Carolina is strategically positioned to serve the Southeastern United States. It provides a low-latency hub for reaching customers in North Carolina, Georgia, and Northern Florida, covering a population of millions within a few milliseconds of round-trip time.

Tax Advantage For Data Centers: South Carolina provides significant, data center-specific tax exemptions on sales and use tax for equipment, software, and electricity. These statutory incentives dramatically lower the upfront capital cost of building or equipping a facility and reduce ongoing monthly power expenses.

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. Site selection and facility engineering are critical to mitigate these potential threats.

The primary risks include hurricanes, strong winds, and tornadoes, which can impact infrastructure and power stability. The state also faces risks from riverine flooding, ice storms, hail, and drought. While earthquake risk is present, it is considered moderate compared to other hazards. Careful due diligence on specific site location, elevation, and building standards is essential.