South Carolina emerges as one of the top state for data centers, local skepticism persists

South Carolina is positioning itself as a leading state for data center expansion, ranking highly due to its business-friendly economic policies, according to a recent CNBC report. This rapid development, however, is being met with significant local skepticism and calls for a temporary halt to further construction.

U.S. Rep. Nancy Mace expressed strong concerns, stating that South Carolina should not serve as a "free power source for billion-dollar tech companies." She has proposed a one-year moratorium to fully understand the impact of data centers on the state's electric grid and water supply, emphasizing the need to protect South Carolina families from potential economic burdens. Currently, the state has minimal regulations on the data center sector, with no centralized agency tracking developments, leaving residents to rely on public records.

Grassroots resistance has already led to concrete action in Colleton County, where plans for an 800-plus-acre data center campus near Walterboro, within the sensitive ACE Basin watershed, were put on hold due to extensive community pushback. Subsequently, the Colleton County Council enacted a six-month moratorium on data center approvals, with the option for extension. Prior to this, the Southern Environmental Law Center (SELC) filed a lawsuit to block the project, arguing that the zoning ordinance opened a treasured rural area to inappropriate industrial development.

Despite these local victories for opponents, the CNBC report suggests much of South Carolina remains prime territory for AI data center development, highlighting increased funding for site readiness programs, good water availability, and competitive electricity rates. However, it also points out the state's lagging generating capacity for electricity. The debate continues, with proponents citing potential technological advancements and opponents focusing on land use, environmental, and energy grid concerns.