What Is a Data Center?
A data center is a physical facility that houses computing infrastructure — servers, storage systems, networking equipment, and the power and cooling systems needed to keep them running. Data centers are the physical backbone of cloud computing, internet services, enterprise IT, and increasingly, artificial intelligence workloads.
Types of Data Centers
Not all data centers are the same. The main categories include:
- Hyperscale data centers: Very large facilities (often 500,000+ square feet) built by major cloud providers like Amazon, Google, and Microsoft. These serve millions of customers and are designed for massive scale.
- Colocation facilities: Buildings where multiple companies rent space for their own servers. The facility provides power, cooling, security, and connectivity.
- Edge data centers: Smaller facilities placed closer to end users to reduce latency for applications like autonomous vehicles, IoT, and real-time services.
- Cable landing stations: Specialized facilities where submarine fiber optic cables connect to terrestrial networks.
Why Data Centers Matter to South Carolina
South Carolina has become an attractive location for data center development due to several factors:
- Low disaster risk — minimal earthquake, hurricane, and flooding exposure in inland areas
- Available land — large parcels suitable for campus-scale development
- Power infrastructure — existing utility capacity and generation resources
- Competitive incentives — state and local tax structures favorable to large capital investments
- Workforce — growing technical workforce and proximity to regional talent markets
Data centers represent one of the largest categories of private capital investment in South Carolina's history. Understanding their impact requires looking beyond the announcement to the long-term effects on communities.
How Data Centers Use Resources
Electricity
Data centers are among the most electricity-intensive facilities in the world. A single hyperscale data center can demand 100 to 500 megawatts of power — comparable to a small city. This has significant implications for:
- Grid planning — utilities must ensure sufficient generation and transmission capacity
- Rate structures — large industrial loads can affect rate design for all customers
- Renewable energy — many operators are seeking renewable power to meet sustainability commitments
Water
Data centers use water for cooling, though the amount varies significantly based on the cooling technology used:
| Cooling Method | Water Usage | Considerations | |---|---|---| | Air cooling | Low | Standard for many facilities | | Evaporative cooling | Moderate-High | Efficient but water-intensive | | Direct liquid cooling | Low | Growing for AI workloads |
Land and Zoning
Data center campuses can span hundreds of acres. The land use, zoning, and site planning decisions associated with these facilities shape community development patterns for decades.
Questions Communities Should Ask
When a data center is proposed, communities benefit from asking:
- What is the total expected power demand, and who pays for grid upgrades?
- How much water will the facility use, and what is the source?
- What tax incentives are being offered, and what is the expected public return?
- How many permanent jobs will be created, and at what wage levels?
- What environmental, noise, and traffic impacts are expected?
- What public reporting and accountability measures are in place?
The Role of the Alliance
The South Carolina Digital Infrastructure Alliance tracks data center projects, policies, and community impacts across the state. Our role is to provide transparent, evidence-based information that helps all stakeholders — residents, businesses, officials, and developers — make informed decisions.
Next Steps
- Explore the Project Tracker for specific data center projects in South Carolina
- Review the Responsible Development Framework for evaluation criteria
- Visit the Policy Center for relevant legislation
- Contribute your knowledge through the Contact page