Data Centers in Charleston
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Charleston, South Carolina – Resilient Edge & Favorable Economics
Charleston offers a compelling combination of low power costs and significant data center tax incentives, making it an attractive edge market. For organizations prioritizing operational expenditure and total cost of ownership in the Southeastern US, this market provides a stable platform for delivering services with low latency to a growing regional economy.
Charleston: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Solid regional connectivity, suitable for edge deployments and disaster recovery sites. |
| Direct Cloud On-Ramps | 0 — as of September 2025 | Access via the nearest major hub, Atlanta, through private network extensions. |
| Power Cost | ≈$0.07/kWh — as of September 2025 | Significantly below the national average, powered by a strong nuclear and gas mix. |
| Disaster Risk | High (NRI Score: 88.8) — as of September 2025 | Requires robust facility engineering and business continuity planning for hurricane and flood risks. |
| Tax Incentives | Yes | Multiple DC-specific sales and use tax exemptions on equipment and power. |
| Sales Tax | 6.00% (state base rate) — as of September 2025 | Data center-specific exemptions can significantly reduce or eliminate this tax on eligible purchases. |
Network & Connectivity Ecosystem
Carrier Density & Carrier Neutrality: Charleston's connectivity ecosystem includes at least two carrier-neutral data center providers as of September 2025. While not a dense national hub, the market offers sufficient network choice for most enterprise and edge computing requirements.
Direct Cloud On-Ramps: There are no direct public cloud on-ramps within Charleston as of September 2025. Secure, low-latency connections to major cloud providers like AWS, Google Cloud, and Microsoft Azure are established via dedicated circuits to the primary interconnection hub in Atlanta.
Internet Exchange Points (IXPs): Public peering is limited within the Charleston market itself. Most network peering is conducted privately between carriers or routed through major exchange points in Atlanta to optimize traffic flow.
Bare Metal: Bare metal server options are available in the region, typically through providers that can deploy hardware into nearby data centers. Services from providers like Hivelocity or phoenixNAP can be leveraged for customers needing dedicated compute resources.
Power Analysis
Average Cost Of Power: The average industrial electricity cost in the Charleston area is approximately $0.07/kWh as of September 2025, which is highly competitive nationally. This low cost directly reduces the total cost of ownership for compute-intensive deployments. The state's power mix is dominated by reliable nuclear (≈55%) and natural gas (≈24%) generation.
Power Grid Reliability: The power grid supporting the Charleston area is well-engineered to serve critical industrial users. Data centers in the region typically have access to redundant power feeds from separate substations to ensure high levels of uptime.
Market Access, Business & Tax Climate
Proximity To Key Business Districts: Data centers in the Charleston market serve the area's growing logistics, aerospace, automotive manufacturing, and technology sectors. Proximity enables low-latency connectivity for local enterprise operations and supply chain management systems.
Regional Market Reach: Charleston provides effective low-latency access to coastal South Carolina, Georgia, and parts of North Carolina. It serves as an excellent edge location for content delivery, IoT data processing, and disaster recovery for businesses based in the Southeast.
Tax Advantage For Data Centers: South Carolina provides some of the most favorable data center tax incentives in the country. The state offers a complete sales and use tax exemption on the purchase of data center equipment, software, and electricity for qualifying facilities, which substantially lowers both upfront capital costs and ongoing operational expenses.
Natural Disaster Risk
Charleston has a High natural disaster risk profile, with a FEMA National Risk Index score of 88.8 out of 100 as of September 2025. The primary environmental threats requiring careful facility planning and mitigation are hurricanes, riverine flooding, strong winds, and tornadoes. Other notable risks include earthquakes, hail, and ice storms.
