South Carolina's $80 Million Investment in Data Centers Scrutinized Over Power Demands, Job Creation
South Carolina has invested $80 million to attract data centers, but the economic benefits and strain on infrastructure are drawing scrutiny. U.S. Rep. Nancy Mace has called for a statewide moratorium due to concerns about the electric grid, water supply, and utility costs. Meanwhile, Colleton County has already enacted a six-month moratorium on data center approvals following community opposition to a large project.
South Carolina has significantly increased its investment in attracting data centers, committing $80 million to position the state as a hub for artificial intelligence infrastructure. This 250% funding boost aims to capitalize on a tech sector that has grown twice as fast as the state's overall economy over the past decade, contributing nearly $51.7 billion.
However, industry leaders, like Jamie DeMent of S.C. Competes, caution against a blanket approach, emphasizing the need for communities to critically evaluate what each project delivers in terms of high-paying jobs and necessary data research versus its impact. This scrutiny intensified as data centers' substantial power demands raise concerns among elected officials and residents.
U.S. Representative Nancy Mace has responded by calling for a one-year moratorium on data center development across the state. Her concerns focus on the potential strain on the electric grid, impacts on the water supply, and rising utility costs for residents. South Carolina's current average electricity price and maximum computing load place it 38th nationally, with an overall infrastructure grade of C+.
Further illustrating local resistance, Colleton County recently put an 800-plus-acre data center campus project near Walterboro on hold after months of community opposition. Subsequently, the county passed a six-month moratorium resolution, pausing new data center approvals, with an option for extension. The lack of a centralized state agency to track data center development means residents often rely on public records and local notices, highlighting the importance of communities engaging with development while maintaining regulatory oversight.