Business and Georgia’s blue wave

Welcome to a very special edition of Georgianomics, The Atlanta Journal-Constitution’s newsletter reporting on the businesses, people and ideas shaping Georgia.

I’m Scott Trubey, the senior editor over the AJC’s business, climate and environment coverage. Let’s break down what this week’s election could mean for business in Georgia.

Some takeaways:

• Many voters took out their frustrations with President Donald Trump.
• Economic issues were top of mind.
• Georgia’s government will look very different.

Time is money, so, let’s hit it.

1. Change election 🗳️

A blue wave swept Democrats back into power. U.S. Sen. Jon Ossoff coasted to reelection and former Atlanta Mayor Keisha Lance Bottoms claimed the governorship, which had been in Republican hands since Sonny Perdue was inaugurated in 2003.

Democrats won all statewide races, including two seats on the Public Service Commission, giving the party a majority at the powerful utility regulator. Democrats also will control the state House for the first time in 22 years.

Headed into the election, an AJC poll showed:

• Inflation and cost of living were the top issues, followed by jobs and the overall economy.
• 55% disapproved of Trump’s job performance.
• Most thought Georgia was on the right track, but nearly six out of 10 said the nation was on the wrong path.

Separately, Associated Press exit polling nationally found most voters put the economy or state of democracy as their top issues.

🔍 READ MORE: Pocketbook issues fueled Georgia’s blue wave. Business leaders have noticed.

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2. Affordability 💸

The Iran war and high gas prices. Persistent inflation. Tariffs. Rising healthcare costs. All of this loomed large in Tuesday’s election. Bottoms and her Republican opponent, Rick Jackson, leaned into economic issues.

Bottoms campaigned on full expansion of Medicaid and lowering the costs of healthcare. She’s proposed cutting the income tax for teachers. Her ideas for lowering housing costs include, among other things, cracking down on corporate landlords, expanding down payment and renter assistance programs and fast-tracking housing developments to increase residential supply.

She has proposed pivoting the state Department of Economic Development, best known for its work in recruiting big companies, toward serving small businesses.

Given many of the affordability issues involve global or federal challenges, there are also limits to what state government can do.

3. Bet on it? 🎰

Bottoms has proposed universal pre-K, expanding the Georgia Lottery-funded program that covered about half the state’s 4-year-olds in 2025.

How? She told the AJC Editorial Board last month she backs a voter referendum on legalizing casino gambling, seeing it as an economic development tool for struggling communities and a source of revenue to support pre-K expansion.

Casino pushes have flopped for decades under the Gold Dome.

Some in Atlanta have coveted the idea of a casino to boost the city’s hospitality sector, though that support is far from universal. Religious and consumer groups concerned about predatory practices have helped stop prior gambling expansions, including efforts to legalize sports betting.

With state leaders seeking new revenue streams, odds might be better in the coming year.

🔍 READ MORE: AJC interview: Bottoms talks casinos, 2020 unrest and Joe Biden

4. Governing

Bottoms will have allies in Democrat Josh McLaurin as lieutenant governor, and all other incoming state constitutional officers. She will be able to appoint leaders across state government agencies that impact businesses and residents. Democrats also will control the House. But a narrow GOP majority in the state Senate, even with McLaurin as presiding officer, will likely push back against her ambitions.

The AJC’s Greg Bluestein lays out what Bottoms’ priorities are likely to be and what she and Democrats will face in enacting that agenda.

🔍 READ MORE: Keisha Lance Bottoms made history with her win. Now comes the hard part.

5. PSC power shift ⚡

The new Democratic majority on the five-seat Georgia Public Service Commission could tee up a number of fights between the utility regulator and Georgia Power.

The AJC’s Kristi Swartz outlines some of the potential battles ahead, including over future power bills, whether Georgia Power will adopt cleaner energy sources and whether more nuclear power could one day come into play.

🔍 READ MORE: Democrats win PSC majority, which could affect Georgia Power bills

6. Data center debate 💻

What will the Democrats’ electoral gains mean for data center development?

Georgia, which grants generous tax breaks to hyperscale data centers, is the fastest-growing market for the hulking computing campuses. But they’ve proven very unpopular among voters.

Bottoms backs a statewide moratorium until the impact of such facilities could be better understood.

• The AJC poll found three out of five voters opposed the construction of more data centers in Georgia to serve artificial intelligence.

Efforts in recent legislative sessions to curtail the state’s incentives have been stymied. Those efforts seem likely to come back.

A huge sell-off on Wall Street on Thursday was led by declines by companies with ties to AI data centers.

🔍 READ MORE: The AJC’s complete coverage of data centers in Georgia

7. D.C. changes 🏛️

With Democrats winning large majorities in the U.S. House and Senate, expect federal legislative efforts to confront pocketbook issues. These could include legislation to help lower health insurance premiums, limit Trump’s tariffs and votes aimed at pressuring Trump to end the war in Iran, according to The New York Times.

Heard on the street 🗣️

“I’m appreciative that we have a very strong election system, and that we were able to have clear results (so quickly) so that aren’t in limbo for four weeks, waiting for a court or recounts or those types of (things). So there is certainty in who we’re going to be working with.”

— Metro Atlanta Chamber President and CEO Katie Kirkpatrick

“There’s always discussion about different groups ranking Georgia among the best states in the union for doing business. I think that’s something that we’ll need to protect.”