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

South Carolina is rapidly becoming a leading state for data center expansion, driven by its business-friendly economic environment, according to a recent CNBC report. This growth, however, has been met with significant local skepticism and opposition due to concerns over electricity consumption, water usage, and environmental impact.

U.S. Rep. Nancy Mace, a Republican representing South Carolina, has voiced these concerns, calling for a one-year moratorium on data center development across the state. Mace emphasized that South Carolina should not be a 'free power source for billion-dollar tech companies' and highlighted the need to understand the impact on the electric grid and water supply, ensuring that local families are not burdened with higher costs.

Concrete action has already been taken 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. This delay followed months of community pushback and a lawsuit filed by the Southern Environmental Law Center (SELC) to block the project and related zoning ordinance. Colleton County subsequently enacted a six-month moratorium on data center approvals, with the possibility of extension. Despite these local victories for opponents, the CNBC report suggests much of South Carolina remains attractive for AI data center investment, citing increased funding for site readiness programs and competitive electricity rates, though generating capacity lags.