CHARLESTON, S.C. — South Carolina’s low-cost business climate and open zoning have helped place the state near the top of national rankings for data center expansion, but growing local resistance and calls for regulation are complicating plans to turn that potential into widespread construction.
The ranking, released Thursday by CNBC, underscores how the Palmetto State’s economic model makes it easy to attract large-scale computing facilities tied to artificial intelligence and cloud services. At the same time, elected officials and community groups are urging caution, citing potential impacts on the electrical grid, water supplies and rural landscapes.
What changes for residents
Residents in counties where data centers are proposed have already seen the difference: public notices and county council hearings now regularly include large-scale technology projects. In several places, local officials have moved to pause approvals while they study impacts.
Colleton County provides a recent example. County leaders approved a moratorium on data center approvals for six months after months of local opposition to plans for an 800-plus-acre campus near Walterboro in the ACE Basin watershed. The measure allows the county to extend the pause if officials determine more time is necessary.
Calls for statewide action
U.S. Rep. Nancy Mace, R-S.C., used the CNBC report to press for federal and state-level pauses. "South Carolina is not a free power source for billion-dollar tech companies," she said, urging a one-year moratorium to study infrastructure and cost impacts.
"South Carolina is not a free power source for billion-dollar tech companies," Rep. Nancy Mace said.
There is currently no centralized state agency tracking the number of data centers across counties, according to reporting in the CNBC analysis. That has left residents and local governments to rely on public records, commercial trackers and county notices to learn when projects are proposed.
Local resistance and legal challenges
Community pushback has already slowed at least one large project. Before Colleton County’s moratorium, the Southern Environmental Law Center filed suit to block zoning and construction of the ACE Basin campus, arguing the development would open a rural area to industrial uses and lead to pollution and degradation.
Developers argue data centers bring jobs, tax revenue and investment. Opponents counter that the facilities consume large amounts of electricity and water and can change rural character. The debate centers on weighing economic benefits against environmental and infrastructure costs.
- Statewide status: CNBC ranks South Carolina highly for data center expansion.
- Local controls: No centralized state tracking; counties handle approvals and permits.
- Recent action: Colleton County six-month moratorium; Southern Environmental Law Center lawsuit pending.
| Issue | Current status |
|---|---|
| State regulation | Minimal; no central tracking agency |
| Colleton County | Six-month moratorium on data center approvals |
| Federal attention | Rep. Nancy Mace called for a one-year moratorium |
For residents trying to follow projects in their communities, the current path is familiar: watch county council agendas, follow local planning commission notices and consult public records. State officials have not announced a coordinated database or reporting requirement to centralize project information.
As South Carolina moves toward a larger role in the development of artificial intelligence infrastructure, the balance between attracting investment and protecting local resources will be shaped in county halls, courtrooms and, increasingly, state and federal discussions over moratoriums and oversight.
Reporting for this article drew on local government actions, the CNBC report and public statements from elected officials and advocacy groups.
