Approximately $39 billion in infrastructure investment across South Carolina from fiscal year 2021 through fiscal year 2028 is expected to generate $66.7 billion in total economic activity, according to new research examining the role infrastructure plays in the state’s economy and its ability to accommodate continued growth.
The Economic Impact of Infrastructure Investments in South Carolina: 2026 Edition, commissioned by the American Council of Engineering Companies of South Carolina’s Infrastructure Works Institute (ACEC-SC IWI) and conducted by the University of South Carolina Darla Moore School of Business, builds on last year’s inaugural study with an expanded analysis of the short- and long-term economic impacts of major infrastructure investments.
The analysis includes investments associated with the American Rescue Plan Act (ARPA), Infrastructure Investment and Jobs Act (IIJA) and transportation sales tax programs in Charleston and Dorchester counties. The study found that every $1 invested generates approximately $1.70 in total economic activity through direct spending and resulting economic multiplier effects.
Those investments are also expected to support an average of 38,056 jobs annually during the eight-year study period, with average annual employee compensation of $72,678, approximately 15 percent higher than the statewide average.
“Infrastructure is a primary foundation for economic growth, and as one of the fastest-growing states in the country, expanding South Carolina’s infrastructure is becoming even more critical,” said Dr. Joseph Von Nessen, research economist with the University of South Carolina Darla Moore School of Business. “If we want to maintain that momentum, we have to continue looking at ways to responsibly invest in the infrastructure that serves South Carolina residents and businesses every day while preparing for the growth ahead.”
The findings come as South Carolina’s rapid growth continues to increase demand on the infrastructure serving residents and businesses statewide. South Carolina currently ranks first nationally in population growth, fourth in employment growth and third in overall economic growth.
“Keeping pace with South Carolina’s growth means looking beyond the projects themselves and at what reliable infrastructure makes possible for people and communities,” said Theresa McClure, president of the ACEC-SC Infrastructure Works Institute. “Whether it’s getting to work, accessing clean water, connecting to broadband or protecting communities from flooding, these investments touch the daily lives of South Carolinians. This research gives us a clearer picture of what is at stake as we plan for the state’s future.”
Beyond its economic impact, the study examines how infrastructure investment affects daily life across South Carolina, from the roads residents use to reach jobs, schools and medical care to the water systems, broadband networks and stormwater infrastructure communities rely on every day.
While the $66.7 billion figure captures short-term economic activity generated as infrastructure projects are built, maintained and modernized, the study also examines their potential long-term effects. Researchers estimate that maintaining and improving the state’s infrastructure could increase South Carolina’s future annual employment growth rate from 1.3 to 1.8 percent, keeping the state competitive for new business investment and expansion. That difference could translate into nearly 140,000 additional permanent jobs between 2026 and 2036 and $15.1 billion in potential new labor income for South Carolinians.
The analysis encompasses transportation, water and wastewater, broadband, stormwater and resilience investments. Data for the 2026 study were provided by the S.C. Department of Transportation, S.C. Rural Infrastructure Authority, S.C. Department of Environmental Services, S.C. Broadband Office within the S.C. Office of Regulatory Staff and three new data partners: the S.C. Office of Resilience, Charleston County and Dorchester County.
The full Economic Impact of Infrastructure Investments in South Carolina: 2026 Edition is available at infrastructureworks.org/research.
