From Fiber to Fabrication: South Carolina Manufacturers Ride the Data Center Wave

By Mike Demos, OpExChange Coordinator for the SCMEP

South Carolina’s manufacturing landscape is experiencing a subtle but profound transformation, fueled by the rapid expansion of data centers. On a recent OpExChange webinar, a panel of experts explored the factors driving this growth and what it means for local manufacturers. Moderated by Shane Whatley of THS Constructors, the discussion offered insights into opportunities for manufacturers, the role of technology, and the strategic decisions shaping the state’s industrial future.

Panelists and Expertise

Shane Whatley, Senior Vice President of Business Development at THS Constructors, opened the conversation. THS Constructors, a 100% employee-owned firm specializing in light industrial construction across the Southeast, emphasizes client relationships, agile project management, and on-time, on-budget delivery. Shane’s expertise in sales and construction management brought a practical perspective to the discussion, focusing on how manufacturers can connect with the data center ecosystem.

Ben Rojahn of CBRE’s Data Center Solutions group shared his insights on the commercial real estate and strategic location factors behind the recent data center boom. With a leading market share of data center transactions in the Carolinas, Ben highlighted trends in site selection, energy usage, and community impacts. He noted, “It’s not just about finding land – it’s about finding the right combination of fiber, power, and infrastructure to make these facilities operational and resilient.”

Nelson Lindsay of Parker Poe Consulting offered guidance on economic development, site selection, and incentive structures for data centers. With nearly 30 years of experience, Nelson explained how communities structure property tax abatements and state-level incentives to attract large-scale data center projects. As he emphasized, “Property taxes and state-level sales tax exemptions can be the difference between a project landing here or going elsewhere. Communities that understand this are positioning themselves for long-term success.”

Brandon Jachimski, Operations Manager at Rosendin, spoke to the electrical and communications infrastructure essential to data center construction. With 22 years of experience in electrical construction, Brandon stressed the importance of quality, scalability, and innovation: “Data centers are complex ecosystems. Success comes from building systems that are reliable, flexible, and scalable, while ensuring safety and operational continuity.”

Highlighting South Carolina Manufacturers: AFL and Daedalus Industrial

Two OpExChange members, AFL and Daedalus Industrial, provided an inside look at production and supply chain operations, showing how local manufacturing supports global data center infrastructure.

AFL, founded in 1984, is an international manufacturer providing end-to-end solutions for energy, service provider, enterprise, hyperscale, and industrial markets. Tony Nieves, Director of Client Success at AFL, shared, “Our fiber and connectivity solutions allow data centers to scale globally while being supported locally. We’re seeing tremendous growth, and South Carolina is uniquely positioned to be part of this expansion.” AFL’s products, including fiber optic cable, connectivity hardware, transmission and substation accessories, and test and inspection equipment, are in use in over 130 countries. Through its engagement in the OpExChange community, AFL demonstrates how local manufacturers can play a global role while supporting regional growth.

Daedalus Industrial specializes in automation solutions, control systems, and mission-critical equipment fabrication. Tom Zadera, Senior Vice President, explained, “Our systems touch every piece of a data center’s infrastructure – from power and water systems to backup generators – so operators can efficiently manage facilities of enormous scale with minimal staff.” From OEM and custom panel manufacturing to controls engineering and electrical and mechanical design, Daedalus provides turnkey solutions. With AI-driven tools, the company accelerates design and operational efficiency, allowing data centers to scale with precision and reliability.

Key Insights on Data Center Expansion

The panelists painted a picture of data centers as highly complex, labor-light operations. Facilities can span hundreds of thousands of square feet yet operate with only a few dozen on-site staff. Automation, control systems, and AI tools are critical in managing mechanical, electrical, and water systems. Tom Zadera emphasized, “Operators heavily rely on our software tools for alarm controls, modifications, and real-time decision-making. It’s like changing a thermostat, but at a scale of hundreds of thousands of square feet.”

Ben Rojahn highlighted the strategic role of location, noting that fiber connectivity, power availability, and environmental considerations all influence site selection. Historical hubs like Northern Virginia remain dominant, but the Carolinas are increasingly attractive due to available power, old industrial infrastructure, and proximity to fiber routes. Nelson Lindsay added that economic incentives make South Carolina competitive for data center investment.

Tony Nieves and Tom Zadera both underscored the massive scale and sustained growth of the industry. Tony noted, “Hyperscale customers will continue to invest and re-innovate their data centers for decades to come. The growth trajectory shows no signs of slowing.” Tom Zadera added, “If the AI boom is a concert, we’re still in the line leading into the parking lot. The party hasn’t even started yet.”

AI and the Future of Manufacturing

A recurring theme was the transformative impact of artificial intelligence. AI is reshaping operations, from estimating project costs to automating design and engineering documentation. Tom Zadera explained how Daedalus Industrial uses AI-driven tools to accelerate mechanical and electrical drawings, while Tony Nieves highlighted AI’s role in optimizing data center operations for efficiency and reliability. The panel agreed: “AI is not a bubble – it’s a permanent and growing force. Manufacturers who embrace it strategically will be best positioned to capture growth and opportunities.”

Key Takeaways for Manufacturers

Moderator Shane Whatley summarized the discussion with practical guidance for OpExChange members:

AI and Business Impact: Explore AI thoughtfully, balancing innovation with operational awareness.
The Role of Data Centers: Recognize the influence of data centers on growth, efficiency, and sales opportunities.
Reflect on Opportunities: Identify where your company can deliver the most value within the data center supply chain.
Connect and Contribute: Leverage the OpExChange community to share insights, visit member facilities, and build collaborations.

The Road Ahead for South Carolina Manufacturers

South Carolina manufacturers are uniquely positioned to benefit from the ongoing data center revolution. From AFL’s fiber optic and connectivity solutions to Daedalus Industrial’s automation and controls systems, local manufacturers are providing essential infrastructure to the global digital economy. By embracing AI, strengthening supply chains, and collaborating through OpExChange, manufacturers can thrive amid rapid growth and evolving demands. This isn’t just a wave – it’s a rising tide, reshaping the state’s industrial landscape for years to come.

Reference Section

AI in the Plant – The SCMEP has several resources for custom implementation of generative AI. Contact your SCMEP Regional Vice President if you’d like to discuss what is available (or ask Mike to connect you with them).

Available on the OpExChange Members Only Portal (Request Access)

Webinar Recording – A full recording of the webinar is available on the Portal.
PUE vs PCE – Paul Quigly, President of Airsys (HVAC manufacturer for large data centers), provided a short video demonstration on Power Usage Effectiveness and Power Compute Effectiveness. PCE shows how much provision power is driving IT load. The higher the PCE, the more your capacity is monetized. Video is on the Portal.