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

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

CHARLESTON, S.C. (WCIV) — As the debate over data centers and the future of artificial intelligence rages, South Carolina has quietly positioned itself as one of the country's best states to expand the polarizing technology.

The Palmetto State's business-friendly economic model ranked it highly among others for the ease with which data centers can be built and integrated into the economy, according to a report from CNBC released Thursday.

Despite South Carolina being primed to play an outsized role in the future of artificial intelligence, residents of the state are far from embracing the technology outright. Now, echoing those concerns are elected leaders, such as U.S. Rep. Nancy Mace, who view the report as proof that Congress and state legislatures need to pump the brakes.

"South Carolina is not a free power source for billion-dollar tech companies," Mace said. "As South Carolina becomes a prime target for AI data center development, the stakes are only getting higher. We need a one-year moratorium to understand the impact on our electric grid, water supply, and ensure South Carolina families aren't left footing the bill."

Thus far, South Carolina has minimal regulations on the data center sector of the economy. No centralized state-level agency tracks the number of data centers popping up in several counties. Residents are often left to rely on public records, commercial tracking services and public notices coming from county councils.

Still, data center development has run into grassroots resistance from various communities. In Colleton County, plans for an 800-plus-acre data center campus south of Walterboro, within the ACE Basin watershed, were put on hold after months of community pushback.

The Colleton County moratorium resolution pauses data center approvals and considerations for six months. It also leaves open the opportunity to extend the pause if need be. Before the moratorium's passage, the Southern Environmental Law Center sued to block the passage and construction of the ACE Basin campus.

“This zoning ordinance opens up a treasured and rural part of our state to industrial development and all the pollution and degradation that comes with it," Emily Wyche, a senior attorney with the SELC, said at the time. "Data centers don’t belong in the rural ACE Basin. Colleton County should be continuing the legacy of conservation in this area, not selling it to the highest bidder.”

Though concerned residents were able to notch a victory – for now –in Colleton County, CNBC's report assesses that the rest of South Carolina is still fertile ground in the artificial intelligence race.

"South Carolina boosted the funding for its Palmetto Sites site readiness program by more than 250% to $80 million in 2026, according to data from the Site Selectors Guild," writes Scott Cohn, a special correspondent for CNBC. "In June, the program’s database listed 51 sites ranging from 1 acre to more than 1,800 acres, certified and ready for development. Water availability is good, and electricity rates are competitive. But the state lags on generating capacity and electricity available for computing."

The full list of other states on CNBC's list includes Tennessee, Pennsylvania, Michigan, New York, Arizona, Indiana, Ohio, Virginia, and Illinois.

THE DATA CENTER DEBATE

Local data center opposition is often rooted in land-use concerns, especially when housing remains front of mind for most Americans. Additionally, there is the strain on the energy grid and the expected premium prices that have befallen many Americans.

Since 2025, residential revenues jumped 6.0%, according to the U.S. Energy Information Administration. Those increases aren't solely brought on by data centers, but the technology, of late, is a factor.

Communities also remain concerned over the environmental factors, scant long-term job creation and the potential for job loss at the hands of artificial intelligence.

Supporters of the artificial intelligence age will point to factors such as the rampant data center development being only a momentary spike rather than a longstanding concern.

They can also highlight the continued development of the technology, which is leading to smaller and cheaper centralized computing. And analysts have suggested that the data center craze could be similar to the fiber optic cable bubble from the early 2000s, as demand shifts to those smaller models.

Despite arguments on each side of the issue, the future of the artificial age remains an unanswered question.

It is the uncertainty that has led to Mace, along with several progressives in Congress, to call for a nationwide moratorium. On the other side, the unknown has also galvanized artificial intelligence supporters to claim that pausing development is ceding the future to the United States' opposition.

"The moratorium sets the terms for what comes next," Mace said of her proposal. "Data centers pay their own way, or they don't come here."