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Category: Data Centers

Spartanburg County Welcomes a Game-Changing $2.8B High-Performance Computing Center

Photo Credit: Binswanger

In a transformative move for Spartanburg County, South Carolina, NorthMark Strategies, through its subsidiary Valara Holdings, is investing a staggering $2.8 billion to convert the former Kohler manufacturing facility into a state-of-the-art high-performance computing (HPC) center. This ambitious project promises to redefine the region’s economic landscape, bringing cutting-edge technology, thousands of jobs, and sustainable innovation—all without costing taxpayers a dime. Here’s why this development is a big deal for Spartanburg and beyond.

A Bold Vision for the Future

The Kohler facility, once a hub for manufacturing, is being reimagined as a powerhouse for high-performance computing, a field critical to advancements in artificial intelligence, scientific research, and data analytics. NorthMark Strategies, a company focused on sustainable infrastructure, plans to leverage the site’s existing industrial framework to create a facility that not only meets the growing demand for computational power but also sets a new standard for eco-conscious development.

For a region already known for its manufacturing prowess, this pivot toward technology signals Spartanburg’s readiness to compete in the digital age.

Zero Cost to Taxpayers, Maximum Impact

One of the most compelling aspects of this project is its financial structure. Spartanburg County is not footing the bill for this massive investment. Instead, the county has strategically employed economic incentives to attract NorthMark’s investment while ensuring minimal strain on public resources. Through Fee-in-Lieu of Tax (FILOT) agreements, the county has reduced the property tax assessment ratio for NorthMark from 10% to 4% for 40 years, significantly lowering the company’s tax burden. Additionally, a Special Source Revenue Credit (SSRC) allows NorthMark to offset infrastructure costs, further sweetening the deal.

According to Spartanburg County Councilman David Britt, this project comes at “zero cost to taxpayers” and requires little from existing infrastructure. The facility will generate its own power using natural gas from an existing pipeline, ensuring it operates independently of the local grid. This self-sufficiency, combined with the county’s savvy use of incentives, makes the project a win-win for both NorthMark and the community.

A Sustainable Approach to High-Tech Innovation

Sustainability is at the heart of NorthMark’s vision. The decision to repurpose an existing industrial site rather than build from scratch minimizes environmental impact and preserves green spaces. By tapping into an existing natural gas pipeline, the facility will operate efficiently, reducing reliance on external energy sources. This aligns with broader trends in the tech industry, where companies are increasingly prioritizing eco-friendly solutions to meet both regulatory and consumer expectations.

Moreover, the project’s focus on high-performance computing positions Spartanburg as a hub for innovation. HPC centers are critical for processing massive datasets, running complex simulations, and driving breakthroughs in fields like healthcare, climate modeling, and machine learning. By bringing this capability to South Carolina, NorthMark is not only boosting the local economy but also contributing to global technological progress.

What This Means for Spartanburg County

The ripple effects of this $2.8 billion investment are profound. Beyond the immediate job creation, the HPC center is expected to attract ancillary businesses, from tech startups to supply chain partners, fostering a vibrant ecosystem of innovation. Local schools and universities may also see increased demand for STEM programs, preparing the next generation for careers in high-tech industries.

For residents, the project offers the promise of economic stability and opportunity. The influx of well-paying jobs could elevate the standard of living, while the county’s minimal infrastructure burden ensures that public services remain unaffected. As Spartanburg County Councilman Britt aptly noted, this is a “transformational” moment for the region—one that cements its reputation as a destination for forward-thinking investment.

A Model for Economic Development

Spartanburg County’s approach to this project serves as a blueprint for other communities looking to attract major investments. By leveraging tax incentives and existing infrastructure, the county has secured a multi-billion-dollar project without dipping into public funds. This strategic partnership with NorthMark demonstrates how local governments can balance economic growth with fiscal responsibility, creating opportunities that benefit everyone.

As construction begins and the HPC center takes shape, all eyes will be on Spartanburg. This isn’t just a local success story—it’s a testament to the power of vision, collaboration, and innovation. The future of high-performance computing is coming to South Carolina, and Spartanburg County is leading the charge.

What do you think about this exciting development? Share your thoughts in the comments below, and stay tuned for updates on Spartanburg’s high-tech transformation!

Mystery Company to Invest $2.8B in Spartanburg County – Not a Data Center

There has been some news that Spartanburg County is about to get a $2.8 Billion investment from an unnamed company at this point. Fox Carolina has a news story about what the Spartanburg County Council is considering with this investment. I’m assuming there will be massive tax breaks provided to this company to have them invest in South Carolina.

“Councilman David Britt said the county is still in negotiations with the company, which he described as a high-performance computing center that supports engineering, technology and aerospace sectors.” Furthermore, “Britt specified the project is not a data center and would also be an energy-self-sufficient facility.”

There’s lots of information coming out of Columbia, SC lately that South Carolina wants to get in front of the data center boom and be sure that SC gets more than its fair share of data center investments. Here’s the South Carolina Data Center Map.

Google’s Data Center Dorchester County, SC.

META’s Data Center Aiken Couty, SC.

Data Journey purchases Spartanburg Data Center for $12MM.

Data Center Dynamics – South Carolina Data Center News

EATON Expands in South Carolina to support growing data center demand.

GE Vernova’s $160M Greenville Expansion: Powering AI’s Energy-Hungry Data Centers with Advanced Gas Turbines

GE Vernova 9HA Gas Turbine / Source: GE Vernova

GE Vernova just announced a $600 million commitment to expand and improve it’s business in several locations across the U.S. Greenville will see $160 million investment that will lead to 550 new jobs.

The Greenville facility is massive spanning 413 acres with plenty of manufacturing space. They are not planning to expand the footprint of the facilities. According to the Upstate Business Journal, “the investment will be improving infrastructure and adding machinery and equipment to push production from an average of about 50 turbines per year to between 70 and 80 annually.”

Yahoo Finance has some excellent details on the capital commitment. Fuel Cell Works also has a lot more information about the innovative, technological advancements and research that is planned with this investment.

The demand for energy and data centers to power the growth of AI is exploding. There will be lots of investment in data centers despite the scare this past week from China-based DeepSeek.

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