As artificial intelligence fuels a nationwide boom in data center construction, rural South Carolina counties are finding themselves at the center of high-dollar negotiations — often with little public awareness.
In January, Marion County quietly approved a $2.4 billion data center project during a winter storm. The vote followed earlier proposals in other rural counties, including Colleton County, where similar large-scale data center campuses have drawn public scrutiny over land use, water demand and tax incentives.
Across the country, developers are targeting rural communities with available land and fewer zoning barriers. Many of those projects move forward under nondisclosure agreements, with agenda items listed under code names until formal votes are taken.
The rapid expansion has prompted questions locally: If neighboring counties are approving data centers, could Clarendon County be next?
HOW RECRUITMENT WORKS IN CLARENDON
George Kosinski, director of the Clarendon County Business Development Corporation, said the county’s recruitment strategy has historically focused on advanced manufacturing, logistics and wood products — industries aligned with the county’s forestry resources and its location along Interstate 95.
“We’re actively recruiting companies daily,” Kosinski said, noting that leads also come through the South Carolina Department of Commerce and the Central SC Alliance, which markets the Midlands region nationally and internationally.
Data centers are not a primary target sector, he said, but inquiries can arise either directly from companies or through consultants evaluating sites. Such facilities require significant power, water for cooling and large, appropriately zoned sites.
When early conversations progress beyond an initial lead, projects are reviewed by the county’s 11-member Business Development Corporation board. If the board supports moving forward, the proposal then goes before County Council for readings and a public hearing.
“There’s always three readings, and there’s always a public hearing,” Kosinski said.
WHAT A DATA CENTER WOULD REQUIRE
The key drivers for a data center are power availability, water for cooling and large, appropriately zoned sites.
Kosinski said Clarendon’s industrial park currently can provide about 10 megawatts of power immediately and potentially 50 to 60 megawatts within roughly 12 months. Larger projects — for example, those requiring 100 megawatts — could take two to three years to secure the necessary transmission capacity.
That timeline matters.
Many data center developers want to be operational within 18 months. If power delivery takes significantly longer, communities can lose out to faster-moving sites in other states.
From a land-use perspective, Kosinski said data center prospects he has spoken with are looking at existing industrial parks or large industrial-zoned tracts, such as the county’s I-95 mega site, rather than purchasing farmland outright.
“If and when they locate, it will be in an industrial park,” he said. “It’s already zoned industrial.”
If a private developer were to pursue agricultural land, rezoning would be required — triggering a separate public process.
WATER USE AND NATIONAL CONCERNS
While economic development officials often highlight the tax revenue potential of data centers, critics nationwide have raised concerns about water and energy use.
According to research published by the Lincoln Institute of Land Policy, data centers are “resource-ravenous” facilities that require substantial land, electricity and water to operate. Cooling systems, which prevent servers from overheating, are among the most significant drivers of water consumption.
Depending on the size and cooling design, some data centers can use as much water as a small town. Much of that water is evaporated during cooling and not returned to the local system. In certain communities, a single facility has consumed a noticeable share of countywide water supply.
The Lincoln Institute notes that as AI and cloud computing demand grows, communities are often negotiating incentive packages before fully assessing long-term impacts on groundwater, utilities and infrastructure.
Kosinski said newer facilities increasingly rely on closed-loop cooling systems, which recirculate water and minimize ongoing withdrawals, with losses largely occurring through evaporation.
He acknowledged that water and power capacity must be evaluated carefully for any project.
“It’s a balancing act,” he said.
WEIGHING TAXES AND IMPACT
Data centers typically employ far fewer permanent workers than traditional manufacturing plants. A large facility might create dozens — not hundreds — of jobs.
However, they can generate significant property tax revenue.
Kosinski said manufacturing and similar industrial uses are assessed at a higher rate than residential property, and data centers are generally treated in that same category. Incentive tools such as fee-in-lieu-of-tax agreements can reduce the effective tax burden for a defined period to help level the playing field with neighboring states.
Companies still pay property taxes, though often at a reduced structure designed to make a project financially viable, Kosinski said. “They’re always paying something.”
From a fiscal standpoint, he argued, a project generating millions in new tax revenue — even with reduced assessments — can strengthen a rural county’s budget without placing the same strain on schools and public services as large residential developments.
At the same time, nationwide critics point to long-term infrastructure demands, particularly on electric grids. Data centers are among the fastest-growing drivers of electricity demand in the United States, and some regions are planning new transmission lines or power plants to meet projected growth.
For Clarendon, the timeline for delivering large-scale power remains a central consideration.
COULD IT HAPPEN HERE?
Kosinski said Clarendon is not actively chasing data centers as a core recruitment strategy, but the county’s available industrial sites and access to groundwater mean it could be evaluated by developers looking for rural locations.
Whether a project ultimately materializes would depend on infrastructure capacity, developer timelines and negotiations that must first pass through the Business Development Corporation board and then County Council.
As neighboring counties navigate both opportunity and controversy tied to billion-dollar data centers, Clarendon’s future — at least for now — remains a question of timing, infrastructure and community priorities.
