Data Centers in Spartanburg
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Spartanburg, South Carolina – Cost-Effective Southeastern Hub
Executive Summary
Spartanburg is an emerging edge data center market ideal for organizations targeting the Greenville-Spartanburg industrial corridor and seeking a cost-effective alternative to larger hubs like Atlanta or Charlotte. The market's primary advantages are exceptionally low power costs and significant state-level tax incentives, which combine to lower total cost of ownership for colocation, disaster recovery, and regional application delivery.
Spartanburg, South Carolina: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | A secondary market with solid regional fiber connectivity suitable for many workloads. |
| Direct Cloud On-Ramps | 0 — as of September 2025 | Direct access requires network extension to major hubs like Charlotte or Atlanta. |
| Power Cost | $0.07/kWh — as of September 2025 | Very competitive rates driven by a favorable nuclear and natural gas generation mix. |
| Disaster Risk | High (88.80 NRI Score) | Primary risks include tornado, strong wind, hail, and hurricane-related weather events. |
| Tax Incentives | Yes | Multiple data center-specific sales and use tax exemptions reduce capital and operational costs. |
| Sales Tax | 6.00% (state base rate) — as of September 2025 | Local taxes may apply, but DC-specific exemptions offer significant relief. |
Network & Connectivity Ecosystem
Spartanburg provides reliable regional connectivity, serving as a strategic point between the larger Atlanta and Charlotte network ecosystems. While not a primary interconnection hub, it offers sufficient infrastructure for most enterprise and edge computing requirements.
Carrier Density & Carrier Neutrality: The market includes over 3 carriers operating within 2 data centers, as of September 2025. This provides foundational options for redundancy and network services in a developing carrier-neutral environment.
Direct Cloud On-Ramps: There are no direct public cloud on-ramps within Spartanburg as of September 2025. Businesses connect to cloud providers like AWS, Google Cloud, and Microsoft Azure via private network links to data centers in nearby interconnection hubs such as Charlotte or Atlanta.
Internet Exchange Points (IXPs): Public peering is not established in Spartanburg. Most network peering is conducted privately or routed through major IXPs in Atlanta or Charlotte to optimize traffic flow and reduce latency.
Bare Metal: Bare metal server options are available, providing dedicated compute resources for performance-sensitive applications. Providers such as Hivelocity offer solutions that can serve the Spartanburg market from nearby locations.
Power Analysis
South Carolina offers one of the most attractive power cost structures in the United States, making Spartanburg a compelling location for power-intensive deployments.
Average Cost Of Power: Industrial electricity rates are approximately $0.07/kWh, as of September 2025. This highly competitive price provides a significant operational cost advantage compared to national averages.
Power Grid Reliability: The regional grid is well-engineered and benefits from a generation mix dominated by nuclear power (≈55%), which provides extremely stable and reliable baseload energy. This is supplemented by natural gas and renewables, ensuring resilient power delivery to data center facilities.
Market Access, Business & Tax Climate
Spartanburg's location and business-friendly environment create a strong value proposition for data center operators and their customers.
Proximity To Key Business Districts: Data centers in Spartanburg serve the Upstate South Carolina region, a major advanced manufacturing and logistics corridor. This proximity is critical for industrial clients, including automotive and aerospace firms, that require low-latency connectivity for production and supply chain systems.
Regional Market Reach: The market effectively serves the Greenville-Spartanburg-Anderson metropolitan area. It also functions as a strategic disaster recovery site for businesses in Charlotte and Atlanta, offering geographic separation while maintaining low-latency connections.
Tax Advantage For Data Centers: South Carolina provides robust, statutory tax incentives specifically for data centers. These programs include long-term sales and use tax exemptions on equipment, software, and electricity, which substantially lowers the initial investment and ongoing operational expenses.
Natural Disaster Risk
Spartanburg has a High natural disaster risk profile, with a Federal Emergency Management Agency (FEMA) National Risk Index score of 88.80, as of September 2025. This score reflects the region's exposure to severe weather events common to the Southeastern United States.
Key risks for facilities in this area include tornadoes, hurricanes (and associated strong winds), ice storms, hail, and riverine flooding. While the area is inland, the impact of hurricane systems can still be significant. Data centers in the region are engineered with physical hardening to mitigate these specific threats.
