A $2.8B computing center proposed in the Upstate would generate its own electricity

A proposed $2.8 billion “computing center” in South Carolina’s Upstate would have its own onsite power generation.

Officials say the so-far-unnamed aeronautics and engineering firm could serve as a model for big tech in the Palmetto State.

The proposed investment in Spartanburg County comes as South Carolina grapples with how to meet the energy needs of a growing population, manufacturing base and an influx of power heavy data centers. It’s referred to publicly as “Project Moc-1” to keep the actual company name secret amid negotiations.

Massive centers under construction by Google and Facebook parent company Meta in other parts of the state each require hundreds of megawatts to operate. But “Moc-1” would buy fuel and make its own power rather than adding to demand on the grid, County Councilman David Britt told the SC Daily Gazette.

“This could set the stage for other projects on how to do something like this,” said Britt, who serves as the council’s economic development committee chairman.

Unlike traditional data centers, “Moc-1” won’t be leasing out space on servers to other companies. Instead, the Upstate center will be for the company’s own use.

South Carolina is in competition with one other state to bring in the business, Britt said. The codenamed company operates in three other states but does not currently have a location here.

While the reported investment figure is huge, the company’s workforce would be small: It’s expected to employ 27 full-time workers. Little else is known as negotiations continue.

To lure in the company, Spartanburg County is offering a reduced property tax rate of 4% for 40 years.

By state law, manufacturers without such an arrangement pay a 6% rate. (Industrial property owners previously paid a 10.5% rate, but state laws passed in 2017 and 2022 effectively lowered it to 6%.)

The county also is offering special credits allowing the company to further buy down its tax bill — a $1.5 million annual credit for the first 20 years and $2 million for the 20 years after that.

Britt said “Moc-1” would be a good fit for Spartanburg County. Even with the incentives, the massive investment would generate a lot of tax revenue for the county.

He also noted that unemployment is already low in the county: 3.9% in December, compared to the state average of 4.7%, as of the latest report by the U.S. Bureau of Labor Statistics.

And, according to Britt, existing small businesses, such as electricians and heating and air conditioning companies, are likely to benefit as the company will need contractors to conduct maintenance on the facility for years to come.

If the deal is made, it would mark the second-largest single investment in state history, behind battery recycler Redwood Materials in Berkeley County.

Redwood Materials announced in late 2022 it was coming to South Carolina but delayed its construction by a year.

The company broke ground on its $3.5 billion site in early 2024. Company spokeswoman Morgan Crapps previously told the SC Daily Gazette that production hiring will begin in the coming months. Redwood will employ 1,500 South Carolinians when it reaches full capacity.