Data Centers in Spartanburg
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Spartanburg – Cost-Effective & Resilient Infrastructure Hub
Executive Summary
Spartanburg, South Carolina, is a strategic market for businesses prioritizing low operating costs and high resilience. Its combination of affordable power, comprehensive state tax incentives, and a favorable disaster risk profile makes it a compelling choice for production workloads and disaster recovery sites that demand stability and long-term value.
Spartanburg: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Solid connectivity for a secondary market, suitable for diverse enterprise needs. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | Direct cloud access is available via private network extensions to nearby hubs like Atlanta. |
| Power Cost | ≈$0.07/kWh – as of September 2025 | Significantly below the U.S. national average, powered by a nuclear-heavy grid. |
| Disaster Risk | High (Score: 88.80) – as of September 2025 | The score reflects multiple moderate risks rather than a single catastrophic threat. |
| Tax Incentives | Yes | Multiple data center-specific sales and use tax exemptions reduce operational costs. |
| Sales Tax | 6.00% (State Rate) – as of September 2025 | Data center-specific exemptions can offset this for qualifying equipment and power. |
Network & Connectivity Ecosystem
Carrier Density & Carrier Neutrality: Spartanburg provides access to 3 network providers, as of September 2025. The market is supported by regional and national carriers, with carrier-neutral facilities offering diverse connectivity options for redundancy and performance.
Direct Cloud On-Ramps: The region contains 0 dedicated cloud on-ramps and is not home to any public cloud regions, as of September 2025. High-performance, low-latency connections to major cloud providers are achieved through private network links to the primary interconnection hub in Atlanta.
Internet Exchange Points (IXPs): Public peering is limited within Spartanburg itself. Most network peering occurs privately between carriers or is routed through major exchange points in Atlanta to optimize traffic flow and reduce latency.
Bare Metal: Bare metal server options are available in the region, providing dedicated compute for performance-sensitive applications. Providers like Hivelocity and phoenixNAP can service deployments in the area.
Power Analysis
Average Cost Of Power: Industrial electricity rates in Spartanburg are approximately $0.07/kWh, as of September 2025. This price is substantially lower than in many primary U.S. markets, offering a significant advantage for reducing ongoing operational expenditures. The grid is supplied by a mix of approximately 55% nuclear, 24% natural gas, and 13% renewables.
Power Grid Reliability: The power grid supporting the Spartanburg area is well-engineered, with infrastructure designed to support its significant industrial and manufacturing base. Data centers in the region benefit from reliable utility service suitable for mission-critical operations.
Market Access, Business & Tax Climate
Proximity To Key Business Districts: Data centers in Spartanburg are strategically located to serve the Greenville-Spartanburg industrial corridor, a major hub for manufacturing, automotive, and logistics. This proximity allows for low-latency support for local enterprise operations.
Regional Market Reach: Spartanburg provides effective digital access to the entire Southeastern United States. Its position along the I-85 corridor connects it directly to major markets like Charlotte and Atlanta, reaching millions of end-users with minimal delay.
Tax Advantage For Data Centers: South Carolina offers strong, data center-specific tax incentives that significantly lower the cost of doing business. The state provides sales and use tax exemptions on investments in computer equipment and electricity, directly reducing both capital and operational expenses.
Natural Disaster Risk
Spartanburg has a High natural disaster risk profile, with a FEMA National Risk Index score of 88.80 out of 100, as of September 2025. The score is driven by a collection of relatively moderate but frequent hazards rather than a single dominant threat. The primary risks for data center planning and resilience are tornadoes, severe wind, drought, hail, and winter storms.
