Data centers are growing in size, location, and scope across the country, and Aiken County is feeling the impact.
In late August 2024, Meta, the parent company of Facebook, Instagram, and Threads, announced it would build a center in Aiken County’s Sage Mill Industrial Park. Just three months later, Atlanta-based DC Blox said it would build a hyperscale edge node in North Augusta. Those centers are smaller and situated regionally to bring networking power closer to the end user. The North Augusta project is one of four announced by the company.
“Our continued expansion is a testament to the soundness of our strategy and our deep understanding of the Southeastern market,” said Jeff Uphues, CEO of DC BLOX, in a news release. “With each new site, we are building the critical digital infrastructure that enables hyper-scale companies to operate at the edge while benefiting from the Southeast’s favorable economics and rapid growth.”
Will Williams, President and CEO of Western SC Economic Development, told ABD that Aiken County offers something that’s vital to data centers.
“The ability to get the power which they need. There is also some recent infrastructure improvement in terms of dark fiber being installed,” he said. “And we have a favorable tax climate here in South Carolina.”
Data centers notoriously use substantial amounts of power. They operate 24/7 and have racks of servers to hold data. Those generate heat, which requires a cooling system. Continued growth of technology use, particularly driven by AI, is expected to increase the need for new data centers.
The International Energy Agency predicts electricity use by data centers could double within two years (www.iea.org/reports/world-energy-outlook-2024)
“Data centers are significant drivers of growth in electricity demand in many regions. After globally consuming an estimated 460 terawatt-hours (TWh) in 2022, data centers’ total electricity consumption could reach more than 1,000 TWh in 2026. This demand is roughly equivalent to the electricity consumption of Japan. Updated regulations and technological improvements, including on efficiency, will be crucial to moderate the surge in energy consumption from data centers,” its report detailed.
Concerns about power consumption are among the concerns local governments express when a data center is proposed. That is coupled with the fact that although data centers are multi-million dollar projects, they create fewer jobs than traditional large-scale manufacturing.
“From an economic development standpoint, the two things we focus on are the investment which generates property tax revenue, and then job creation,” explained Williams. “Our region has been successful over the last three to four years with significant manufacturing investments and job creation, and that has kind of put a strain on the labor pool. So, this is one of those instances where you pivot strictly to the property tax benefits and the low impact on services needed.”
Williams said DC Blox will generate a first-year property tax equivalent to a neighborhood with 63 new $350,000 homes. For Meta, that jumps to 1,726 new $350,000 homes.
“If Meta is going to hire 100 people that will be permanent, badged employees. In terms of needing roads, needing schools, all those things, it’s low impact. Your data center is not going to require the same level of EMS and Deputy Sheriff services that a 300-home subdivision would require. They just sit out there and perk along quietly.”
Georgia Gov. Brian Kemp (R) recently announced the Commission of Career Pathways and Credentials. It brings together 16 states in the South and Southeast, including South Carolina, to improve educational opportunities so people have the credentials necessary for a valuable and well-paying career.
Williams said that teamwork among states is vital.
“These entities, whether they have significant job creation or not, they also allow people to better themselves,” he said. “Perhaps they’re working a gig job, whether it be driving for Uber or DoorDash. This allows them to have the opportunity to have, maybe they didn’t want to go in the manufacturing world, but this gives them a higher level of pay because these jobs are going to be paying over 100,000 a year.”
Williams said the local educational institutions, from K-12 to technical colleges and four-year universities, are ahead of that curve.
“They have stepped up the training that they’ve been doing, which will allow some of these folks to be ready,” he said, adding jobs at data centers could especially help members of the military transitioning back to civilian life.
“You have people that have worked these types of jobs,” said Williams. “So, this will allow that number that Tom Clark (Executive Director, Alliance for Fort Eisenhower) has in his numbers. Sixty-two percent of those that muster out at Fort Eisenhower would like to stay in the area. This is that opportunity.”
Williams said Meta should be operational in the first quarter of 2027. ABD has requested a timeline from DC Blox.
