Data Centers in Spartanburg
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Spartanburg – Cost-Effective Southeast US Hub
Executive Summary
Spartanburg is an emerging edge data center market ideal for enterprises targeting the Carolinas and the broader Southeastern US. It provides a compelling, low-cost alternative to primary hubs like Atlanta, delivering significant savings on power and taxes. This location is engineered for businesses that require resilient infrastructure to support manufacturing, logistics, and regional application delivery.
Spartanburg: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Solid regional connectivity, with fewer long-haul fiber routes than major hubs. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | Nearest hubs are Charlotte and Atlanta; private network extensions are common. |
| Power Cost | $0.07/kWh – as of September 2025 | Very competitive pricing driven by a high percentage of nuclear power generation. |
| Disaster Risk | High (88.80 percentile) – as of September 2025 | Primary risks are atmospheric (wind, ice, tornado); geologic risk is low. |
| Tax Incentives | Yes | Multiple DC-specific incentives, including sales and use tax exemptions on equipment. |
| Sales Tax | 6.00% (state base rate) – as of September 2025 | Data center-specific exemptions can significantly reduce this for qualifying investments. |
Network & Connectivity Ecosystem
Carrier Density & Carrier Neutrality: The market is served by over 3 regional and national providers as of September 2025. Carrier-neutral facilities offer access to multiple networks, though the overall density is lower than in a primary market like Atlanta.
Direct Cloud On-Ramps: There are no direct public cloud on-ramps within Spartanburg as of September 2025. Businesses connect to cloud providers via private network extensions, point-to-point circuits, or wavelength services to major interconnection hubs in Charlotte or Atlanta.
Internet Exchange Points (IXPs): Public peering is not a feature of this market. Most network peering is handled privately within colocation facilities or routed through IXPs in nearby major metropolitan areas.
Bare Metal: Bare metal server options are available through colocation providers in the region. Companies like Hivelocity can serve deployments in the Southeast, offering dedicated compute without the virtualization overhead.
Power Analysis
Average Cost Of Power: Industrial electricity rates in the Spartanburg area average around $0.07/kWh as of September 2025. This highly competitive price is a primary driver for data center operations in the region, offering substantial operational savings compared to national averages. The grid mix is dominated by nuclear (≈55%) and natural gas (≈24%), ensuring a stable and reliable power supply.
Power Grid Reliability: The power grid supporting the Spartanburg region is well-engineered for industrial use. Data centers typically have access to redundant power feeds from separate substations, providing the high levels of uptime required for critical business applications.
Market Access, Business & Tax Climate
Proximity To Key Business Districts: Data centers in Spartanburg are strategically located to support the Upstate South Carolina industrial corridor, which includes major operations for automotive manufacturing, advanced materials, and logistics. This proximity allows for low-latency connectivity to factory floors and supply chain systems.
Regional Market Reach: From Spartanburg, organizations can effectively serve a large population across South Carolina, North Carolina, and parts of Georgia and Tennessee. It is a strong location for disaster recovery and business continuity for firms operating in Charlotte and Atlanta.
Tax Advantage For Data Centers: South Carolina provides powerful, data center-specific tax incentives. The state offers sales and use tax exemptions on investments in computer equipment, software, and electricity, directly reducing both upfront capital expenditure and long-term operating costs.
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 reflects a concentration of weather-related, atmospheric threats rather than seismic or coastal risks.
Key risks for consideration include hurricanes (primarily wind and rain from inland-tracking storms), tornadoes, ice storms, strong wind, and riverine flooding. The risk from earthquakes is present but significantly lower than the primary weather hazards.
