Data Centers in South Carolina: What to know

Data centers are facilities that contain computer servers and related hardware used to store, process, and manage large volumes of digital information. These facilities run 24/7, supporting everything from business operations and healthcare systems to e-commerce and government services. They are critical to modern internet use, cloud storage, and artificial intelligence, but they also consume large amounts of energy, generate heat, and require continuous cooling and maintenance.

These facilities often concentrate in areas with low energy prices, limited regulation, and available land or infrastructure, conditions present in many parts of South Carolina. Without adequate planning and oversight, data centers can increase grid strain, drive up ratepayer costs, and affect nearby communities.

Upstate Forever is not inherently opposed to data centers. However, we believe local and state leaders need to pay attention and quickly adapt to the ever-evolving resource needs from this emerging industry to ensure that residents don't foot the bill for new energy generation or water withdrawal.

Potential Ratepayer Impacts

• Increased electricity demand can drive higher rates for residential and commercial customers.
   
• Customers could be left to pay for investments made to upgrade infrastructure to support energy demand of cryptocurrency mining operations.
   
• According to a study by the University of California Berkley, Upstate New York residents saw an $8 monthly increase and small businesses experienced a $12 monthly increase due to cryptocurrency mining.
   
• In Summer 2022, cryptocurrency miners in Texas received payments more than $1.12 per kilowatt hour on electricity they were only paying $0.04 per kwh for demand response. The difference will be reflected in the retail price paid by residential customers.

Potential Community Impacts

• Residents living near existing or proposed data centers often raise concerns about their impact on quality of life, including constant noise, increased air pollution, higher energy demands, rising utility bills, potential threats to culturally significant sites, and strain on local infrastructure.
   
• With many data centers using diesel backup generators, which emit pollutants like sulfur dioxide and nitrogen oxides, their location is critical to avoiding harmful air pollution in nearby communities.
   
• Discarded hardware can release heavy metals and toxins if not disposed of properly.
   
• States, including South Carolina, have proposed building new gas power plants and expanding nuclear energy, mainly driven by the growing electricity demands of data centers.

Jobs vs. Energy Consumption

• While construction may generate short-term employment, long-term jobs are limited due to automation.
   
• Most data centers employ a few dozen people even when consuming power equal to that of a city.
   
• In April 2025, Northmark Strategies announced their intention to open a data center in Spartanburg, SC, that would create only 27 full time jobs.

For more information, contact Michael Coleman at mcoleman@upstateforever.org