FITSForum: S.C. Must Redefine Economic Development for the Technology Age

by DENNIS FASSULIOTIS

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South Carolina stands at an inflection point. 

For decades, our economic development strategy has been anchored in manufacturing recruitment, logistics, and population growth. That strategy served us well. But the next wave of growth will not be defined by smokestacks or assembly lines alone. It will be defined by capital formation, compute, energy, and infrastructure that supports a technology-driven economy. 

That is why Senate Bill S. 867 — the Data Center Development Act — matters. 

As introduced, S.867 recognizes an important truth: data centers are no longer peripheral facilities. They are core economic infrastructure, underpinning advanced manufacturing, artificial intelligence, healthcare, finance, defense, and the modern digital economy. Treating them as such is not optional, it is necessary. 

But to truly succeed, S.867 must do more than permit data centers. It must help South Carolina redefine economic development itself.

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DATA CENTERS ARE THE PLATFORM, NOT THE PRODUCT

Too often, data centers are discussed narrowly: how much power they use, where they locate, whether they create enough direct jobs. That framing misses the point. 

Data centers are platform infrastructure. Like railroads, ports, highways, and electric grids before them, they enable entire ecosystems of economic activity. They attract capital, anchor long-term investment, and create the conditions for high-wage industries to locate and scale. 

The real economic value is not just in the building; it is in what becomes possible once that infrastructure exists. 

If South Carolina wants to compete in advanced manufacturing, AI-enabled logistics, life sciences, fintech, and national security technology, we must plan for and accommodate the infrastructure those sectors require.

S.867 is a strong starting point, but it must be aligned with how modern technology and energy systems actually operate.

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ECONOMIC DEVELOPMENT MUST INCLUDE GRID PLANNING

One of the most important opportunities in S.867 is the chance to integrate economic development and grid planning, rather than treating them as separate conversations. 

Large technology loads do not behave like traditional industrial loads. Modern data centers can:

• Cap and contract peak demand,
• Curtail or shift load during system stress,
• Deploy on-site generation and energy storage,
• Self-fund infrastructure rather than shifting costs to ratepayers.

A regulatory framework that focuses only on theoretical “nameplate” electrical load risks discouraging the very projects that can help stabilize and modernize the grid. 

A better approach, and one South Carolina should embrace, is to align oversight with real-world grid impact, incentivizing behavior that reduces peak demand, supports reliability, and protects existing customers. 

Done correctly, data centers become not a burden on the grid, but a tool for better grid management. 

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RELATED | A BALANCED PATH FORWARD

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CAPITAL FORMATION IS THE NEW ECONOMIC COMPETITION

States today are not just competing for jobs. They are competing for capital. 

Data centers represent billions of dollars in long-term, immobile investment. They require predictable regulation, clear coordination with utilities, and confidence that infrastructure costs will be allocated fairly. 

S.867 can help position South Carolina as a state that understands this reality – and one that welcomes investment while insisting that large users pay their own way and operate responsibly. 

That balance is critical. The goal is not deregulation. The goal is smart regulation that attracts capital, protects ratepayers, and strengthens public infrastructure.

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A CHANCE TO LEAD NATIONALLY

With refinement, S.867 can become more than a permitting bill. It can be a statement of strategy:

• That South Carolina defines economic development in terms of technology and infrastructure readiness;
• That grid reliability and capital investment go hand in hand;
• That large users are expected to reduce risk, not socialize it;
• And that innovation, when properly governed, strengthens communities rather than displacing them.

Other states are already moving in this direction. South Carolina has the opportunity to lead by crafting a framework that reflects modern economic realities instead of legacy assumptions. 

S.867 opens that door. Now is the moment to walk through it thoughtfully and deliberately. 

If we do, South Carolina will not just host the digital economy. 

We will help shape it. 

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ABOUT THE AUTHOR…

Dennis Fassuliotis, president of the South Carolina Emerging Technology Association, who works with lawmakers and industry leaders on digital asset, artificial intelligence, and innovation-economy policy focused on transparency and economic development.

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