News Summary
A $5 billion investment in data centers in Spartanburg and Cherokee counties has generated both excitement and concern among local residents. NorthMark Strategies plans to transform a manufacturing facility into a state-of-the-art computing center, while Cielo Digital Infrastructure has plans for a large data center, raising environmental concerns regarding energy consumption and emissions. Local authorities support the economic benefits but are facing calls for transparency on environmental impacts.
Spartanburg, South Carolina – An influx of investment in data centers, totaling $5 billion, has raised both excitement and concern in the Upstate region of South Carolina. This investment comes from two major projects: NorthMark Strategies and Cielo Digital Infrastructure, which will create a total of about 57 high-performance computing buildings designed to support a growing market driven by artificial intelligence.
NorthMark Strategies is set to invest $2.76 billion to convert a former manufacturing facility in Spartanburg County into a state-of-the-art computing center. Cielo Digital Infrastructure has announced a $2.1 billion plan to establish its own computing data center in Cherokee County. Together, these facilities are expected to create a significant number of jobs, with NorthMark generating around 27 jobs and Cielo expected to add approximately 30 jobs.
Bearing in mind the rapid expansion of data needs fueled by advancements in artificial intelligence, the details surrounding these projects are both promising and alarming. NorthMark’s data center plans include generating power on-site using natural gas, which aims to maintain water usage levels similar to those of the previous manufacturing operations. In contrast, Cielo’s facility is projected to consume about 288 megawatts of energy per day, raising concerns about the strain this demand may place on the local power grid and the potential for increased energy costs for residents.
Local environmental advocates have voiced concerns regarding potential air pollution resulting from the NorthMark facility. The Southern Environmental Law Center and the Sierra Club Upstate have both highlighted the environmental ramifications associated with the projected power consumption and emissions from these large data centers.
The scale of NorthMark’s project is remarkable, as it will cover around 900,000 square feet and cater to applications in artificial intelligence, scientific research, and data analysis. The first operational area, or “data hall,” is slated to launch in the spring of 2026. Meanwhile, Cielo’s data center will consist of four buildings, each measuring nearly 400,000 square feet, and using closed-loop technology to significantly conserve water compared to traditional operations.
Local governments have generally welcomed these developments for the substantial tax revenue they are expected to produce. Nonetheless, there are rising calls among state lawmakers and residents for transparency concerning the environmental impacts and infrastructure demands associated with the construction and operation of these facilities.
While the investments in Spartanburg and Cherokee counties present significant opportunities for economic development and job creation, they also pose critical questions regarding environmental sustainability and the overall effects on local resources. Addressing these issues, alongside managing the expected increases in energy consumption, will be essential for the future success and acceptance of such projects in the Upstate region.
To stimulate NorthMark’s project, Spartanburg County has offered an extended tax incentive, proposing a reduced property tax rate of 4% for a duration of 40 years as a means to attract and facilitate the establishment of the center.
As South Carolina continues to draw investments into its data infrastructure, there will be ongoing discussions regarding balancing economic growth with environmental stewardship. The impacts of these specific developments in Upstate South Carolina will be closely monitored by both government officials and local residents, as the region navigates this pivotal moment driven by technological advancements.
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Additional Resources
- Post and Courier: Data Centers Impact Upstate South Carolina
- Wikipedia: Data Center
- Data Center Dynamics: Proposal for $2.8bn Data Center
- Google Search: Upstate South Carolina data centers
- Go Upstate: $2.1 Billion Data Center Coming to Gaffney
- Google Scholar: Data Centers Environmental Impact
- Daily Gazette: $2.8B Investment in Spartanburg County
- Encyclopedia Britannica: Data Center Environmental Impact
- GSA Business: Spartanburg Data Center Purchased for $12M
- Google News: Spartanburg Data Centers
Author: STAFF HERE SPARTANBURG
The SPARTANBURG STAFF WRITER represents the experienced team at HERESpartanburg.com, your go-to source for actionable local news and information in Spartanburg, Spartanburg County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as the Spartanburg International Festival, Spartanburg ArtWalk, and motorsport events at Spartanburg Speedway. Our coverage extends to key organizations like the Spartanburg Area Chamber of Commerce and the Spartanburg Regional Healthcare System Foundation, plus leading businesses in manufacturing and textiles that power the local economy such as BMW Manufacturing and Milliken & Company. As part of the broader HERE network, including HEREAiken.com, HEREBeaufort.com, HEREChapin.com, HERECharleston.com, HEREClinton.com, HEREColumbia.com, HEREGeorgetown.com, HEREGreenwood.com, HEREGreenville.com, HEREHiltonHead.com, HEREIrmo.com, HEREMyrtleBeach.com, HERENewberry.com, HERERockHill.com, and HERESpartanburg.com, we provide comprehensive, credible insights into South Carolina's dynamic landscape.
