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Georgia could restart regional energy, water reviews for data center proposals

The Department of Community Affairs paused regional impact reviews for data centers in July, worrying some groups.
An aerial view captures a large area under construction for a new data center campus on Thursday, May 29, 2025. Developed by QTS, the data center campus near Fayetteville is one of the largest under construction in Georgia. (Miguel Martinez/AJC)
An aerial view captures a large area under construction for a new data center campus on Thursday, May 29, 2025. Developed by QTS, the data center campus near Fayetteville is one of the largest under construction in Georgia. (Miguel Martinez/AJC)
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In July, a Georgia agency quietly allowed proposed data centers — whose energy, water and land demands have caused a stir around metro Atlanta — to stop going through in-depth, regional reviews to evaluate their impacts.

The temporary pause to the Development of Regional Impact process for new data centers raised concern from environmentalists worried it could leave the state “flying blind” when it came to the facilities’ vast needs.

Now, the Georgia Department of Community Affairs — which sets DRI guidelines — is weighing rule changes to once again make certain data centers disclose information about their resource requirements to regional planning authorities.

The DCA published the proposed rules Wednesday and is accepting public comment through Sept. 12.

Views of the inside of Equinox data center located in Downtown Atlanta shown on Wednesday, May 7, 2025. (Natrice Miller/AJC)
Views of the inside of Equinox data center located in Downtown Atlanta shown on Wednesday, May 7, 2025. (Natrice Miller/AJC)

A DRI review is often the first time many large developments enter the public eye. The process, which can be triggered by a rezoning request or permit application, evaluates a project’s water consumption, power needs and traffic demands, plus can reveal other information about a development’s scale.

But in July, The Atlanta Journal-Constitution reported the DCA was suddenly pressing pause on requiring data center DRIs. The agency said it made the change because the server warehouses were not specifically mentioned as one of the 20 development types subject to the rules.

The rule changes the agency has floated add a new “technological facility” category, which covers data centers.

Data Surge: An AJC series

Data center development is surging in Georgia with metro Atlanta becoming the fastest growing market for server farms in the U.S. and one of the top locations in the world. But the data center boom has raised many questions about land use, the resources the complexes consume and the risk of costs being spread to other Georgia residents and businesses. This story delves into the power and water demands of data centers and the deliberations of policymakers about this rising industry.

Part 1: Why mall-sized data centers are popping up across Georgia

Part 2: Data centers become new flashpoint for local controversy in Georgia

Part 3: Data Center Alley has lessons to teach. Is metro Atlanta listening?

Part 4: As data centers flock to Georgia, state lawmakers haven’t pumped the brakes

Part 5: Data centers’ thirst for power and water places Georgia on edge

There are two sets of proposed rules: One for areas under the purview of the Atlanta Regional Commission — which oversees planning for a large swath of metro Atlanta — and another for the rest of the state.

Data centers over 300,000 square feet or covering more than 200 acres in the ARC’s 11-county territory would need to file the required information. In “rural” parts of metro Atlanta counties and the rest of the state, only projects over 500,000 square feet would have to go through the process.

Metro Atlanta is the No. 2 market for data centers in the U.S. and last year, metro Atlanta was the country’s top market for data center leasing, according to real estate services firm CBRE.

While many state and local leaders have cheered data center development and the gusher of tax revenue they bring, many neighbors of the sprawling complexes have raised concerns about their rapid expansion and demands on water and power supplies.

The DCA didn’t immediately respond to a request for comment on the proposed changes, but the agency has posted a memo written by its commissioner, Christopher Nunn, laying out its rationale.

Nunn’s memo says, “there has been a rise in developments that have large and potentially adverse effects,” not accounted for by DRI rules. He adds that Regional Commission staff felt the rules should be amended to specifically include those facilities.

On top of the new class created for data centers, the proposal also would subject large solar installations to DRI evaluations. The rules would apply to solar projects that take up more than 300 or 500 acres, depending on where they’re located in Georgia.

The Data Center Coalition, a trade association that represents the industry, said it’s reviewing the potential changes.

“Data centers strive to be good neighbors in the communities where they operate,” said Dan Diorio, vice president of state policy for the DCC. “Data center companies build where they are authorized to do so under local zoning ordinances, rules, and regulations.”

Environmental groups that have been concerned by the pause said they were glad to see the process likely to resume so the public can stay informed.

Chris Manganiello, water policy director for the Chattahoochee Riverkeeper, said if finalized, the new rules are good for transparency and local planners.

“These data factories are different than other large economic development projects,” said Chris Manganiello, water policy director for the Chattahoochee Riverkeeper. “They’re super resource-intensive, industrial operations.”


How to weigh in on the rules

About the Author

Drew Kann is a reporter at The Atlanta Journal-Constitution covering climate change and environmental issues. His passion is for stories that capture how humans are responding to a changing environment. He is a proud graduate of the University of Georgia and Northwestern University, and prior to joining the AJC, he held various roles at CNN.

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