Data Centers in Charleston
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Charleston – Resilient Infrastructure in a Growing Coastal Hub
Charleston presents a compelling, strategic option for companies requiring resilient infrastructure away from primary data center markets. It is best suited for organizations prioritizing disaster recovery, regional workload delivery, and cost-effective operations without sacrificing access to robust connectivity and significant tax advantages. This market provides a stable platform for ensuring business continuity and reaching customers across the Southeastern United States.
Charleston: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Solid connectivity for a secondary market; good for regional and DR workloads. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | Nearest major cloud hubs are in Atlanta; access via private network extensions. |
| Power Cost | ≈$0.07/kWh – as of September 2025 | Very competitive industrial power rates, significantly lower than the national average. |
| Disaster Risk | High (88.8) – as of September 2025 | Elevated risk profile requires resilient infrastructure and thorough disaster recovery planning. |
| Tax Incentives | Yes | Multiple DC-specific sales and use tax exemptions are available for investment. |
| Sales Tax | 6.00% – as of September 2025 | South Carolina state base rate. |
Network & Connectivity Ecosystem
Carrier Density & Carrier Neutrality: Charleston is served by over 2 providers, as of September 2025. The ecosystem supports carrier-neutral colocation, providing redundant connectivity options for production and disaster recovery workloads.
Direct Cloud On-Ramps: There are no direct public cloud on-ramps within Charleston, as of September 2025. Secure, low-latency connections to providers like AWS, Google Cloud, and Microsoft Azure are achieved via private network links to the nearest major hub in Atlanta.
Internet Exchange Points (IXPs): Public peering is limited within the immediate Charleston market. Most peering occurs privately between carriers or is routed through major exchange points in Atlanta, ensuring efficient traffic exchange for the region.
Bare Metal: Bare metal server options are available in the region, often through providers with a presence in nearby hubs like Atlanta. Services from providers such as Hivelocity and phoenixNAP can serve Charleston-based infrastructure with reliable, low-latency performance.
Power Analysis
Average Cost Of Power: Industrial electricity rates in Charleston are approximately $0.07/kWh, as of September 2025. This highly competitive pricing makes large-scale deployments more economical compared to many other US markets. The power mix is dominated by nuclear (≈55%) and natural gas (≈24%), offering a stable and diverse generation portfolio.
Power Grid Reliability: The regional power grid is well-engineered to serve critical industrial and commercial customers. Data centers in the area are typically supported by redundant power feeds from multiple substations, ensuring high levels of uptime.
Market Access, Business & Tax Climate
Proximity To Key Business Districts: Data centers in the Charleston area serve the city's growing logistics, aerospace, automotive, and technology sectors. Proximity enables low-latency connectivity for local enterprise operations and supply chain management.
Regional Market Reach: Charleston provides a strategic location for serving coastal South Carolina, Georgia, and parts of North Carolina. It is an effective edge market for content delivery and application performance for millions of end-users in the Southeast.
Tax Advantage For Data Centers: South Carolina provides significant, data center-specific tax incentives that lower the cost of investment and operations. These exemptions on sales and use tax for equipment and electricity reduce the total cost of ownership for qualifying projects.
Natural Disaster Risk
Charleston has a High natural disaster risk profile, with a FEMA National Risk Index score of 88.8, as of September 2025. The primary risks for data center operations are driven by its coastal location and regional weather patterns. Key hazards include hurricanes, inland and riverine flooding, severe storms (hail, lightning, strong wind), and earthquakes. Facilities in this market are purpose-built with structural and system redundancies to mitigate these environmental threats.
