SC wants to help build data hub in Myrtle Beach to support Amazon, Google and Facebook
An Atlanta-based company is on track for millions in state aid to offset construction costs tied to the building of a data center near the Myrtle Beach International Airport.
S.C. Department of Commerce head Harry Lightsey told lawmakers Wednesday. The DC BLOX cable landing station is among his agency’s top investment priorities given its potential to bring high speed internet into under served areas.
His agency wants to offer the firm $7.5 million in aid through a proposed $100 million Strategic Economic Development Fund included in its departmental budget request.
“What this does is add additional capacity, because we all know the use of the internet continues to increase as we move ahead into the future,” Lightsey told the Joint Bond Review Committee. “Data centers are perfect for economic development if the right infrastructure is in place.”
DC BLOX in October broke ground on its $31.5 million project inside the city’s International Technology and Aerospace Park, promising up to a quarter billion dollars worth of overall investment when fully built.
The work includes a 500-mile dark fiber network to Atlanta dotted with eight nodes to support broadband internet access and cloud computing into rural pockets of Georgia and South Carolina.
Cable landing stations help provide cloud capacity for major tech companies including Amazon, Google and Microsoft — making South Carolina a key player in the market through DC BLOX’s arrival, Lightsey said in promoting the project to lawmakers.
Officials over the past several years have focused on modernizing the state’s internet ecosystem. The General Assembly in 2020 approved using $50 million for broadband initiatives related to COVID-19.
A year later, lawmakers created a broadband expansion arm within the state’s Office of Regulatory Staff.
“I think what we need to concentrate on is the economic benefit that it brings to the state of South Carolina. It brings needed infrastructure, it brings continued opportunities for economic development in rural areas throughout the state, Lightsey said Wednesday.
In its application for state funds made public this week, DC BLOX said the life cycle of hardware and expense in replacing it should create revenues for Horry County.
Each of the five cables cost $20 million and need to be replaced within five to seven years.
“This rapid replacement cycle of the equipment means the sales tax is collected anew each time,” the application states. “
Any state aid to DC BLOX would come on top of a tax break package it secured from Horry County as part of its agreement. The company will pay a 6% property tax rate rather than 10.5%.
DC BLOX plans to open the site later this year.