S.C. Code Ann. § 58-9-3100: Internet access and communications service providers; tax exemptions.

(A) All supplies, technical equipment, machinery, and electricity sold to internet access service providers and communications service providers, for use in producing, broadcasting, or distributing internet access service, communications services, or any combination thereof are exempt from sales tax imposed by Chapter 36, Title 12 pursuant to the provisions of Section 12-36-2120. For purposes of this section, internet access service providers and communications service providers are deemed to be manufacturers.

(B) An internet access provider or communications service provider shall apply to the Department of Revenue for a refund of state and local sales and use taxes paid on items exempt under this section not later than January thirty-first for the prior calendar year. No later than May first, the department shall calculate the total amount of qualifying refund claims. If the total amount of refund claims exceeds ten million dollars for any year, the department shall issue pro-rata refunds such that the total amount of refund claims shall not exceed ten million dollars for any year. Refunds shall be paid no later than June first.

(C) Notwithstanding any other provision of this section, a data center may not claim or utilize the exemption or refund authorized pursuant to this section.

(1) For purposes of this subsection, "data center" means a facility, campus of facilities, or array of electronically interconnected facilities under a single electric supply agreement in this State used by an entity or other business enterprise to operate, manage, or maintain a computer, group of computers, or other organized assembly of hardware and software for the primary purpose of storing, retrieving, or transmitting data, other than facilities owned or operated by a telecommunications company as defined in Section 58-9-2200 or facilities that primarily support telecommunications service or network operations, that has a peak demand of fifty megawatts or greater, and that becomes a customer of an electric service provider after December 31, 2026.

(2) For purposes of calculating peak demand under this definition, peak demand shall be determined according to the contract between the energy user and the electric service provider, and the possibility or occurrence of energy usage which temporarily exceeds fifty megawatts shall not cause a commercial data center to fall under this definition where contractual peak demand is less than fifty megawatts.