Georgia risks competitive advantage with bills that curb data center growth

Georgia prides itself on being the best state in the country to do business, and it has become a national economic leader for good reason.

The state’s skilled workforce, regulatory environment, tax structure and available infrastructure have presented the state with a unique opportunity to lead America’s transition to a digital society/economy.

By continuing to welcome the data center industry and the digital infrastructure that data centers provide, Georgia will cement its role as a leader in enabling the 21st-century economy and our increasingly connected lives.

But that leadership is at risk. Several legislative proposals are advancing that would make Georgia less competitive. These policies would effectively push data center investment out of Georgia and undermine ongoing efforts to maintain and grow an industry that is already generating billions of dollars in economic activity and supporting tens of thousands of jobs across the state.

That approach runs counter to Georgia’s “No. 1 state for business” philosophy that built the state’s success, and it risks sending a damaging message to every company considering future investments.

Because when the rules change after businesses commit billions of dollars, it doesn’t just affect one industry. It signals regulatory volatility across the board, which undercuts the very certainty required for industries — like data centers, manufacturing and other 21st-century sectors — that make long-term, high-capital investments possible.

Consider the economic impact

Josh Levi is president of the Data Center Coalition, the national trade association for the data center industry. (Courtesy)

Data centers aren’t abstract “Big Tech” projects. They represent the digital infrastructure that powers nearly every part of modern life — from banking and health care to small businesses, logistics networks and the smartphones in our pockets. They are also deeply embedded in Georgia’s economy.

In 2023 alone, the industry created roughly 30,000 direct jobs and supported more than 176,000 total jobs statewide.

These are stable, high-paying careers, many in construction, skilled trades and technical roles that don’t require a four-year degree. At a time when affordability is top of mind for many Georgians, these steady employment opportunities are a boon for working families.

The economic impact is just as significant.

Data centers contributed $25.7 billion to Georgia’s gross domestic product in 2023 and delivered $1.06 billion in state taxes and another $767 million to local governments. That revenue supports schools, public safety and infrastructure, and even helps make tax relief possible.

For proof, just look to Covington, in Newton County, which is moving forward on plans to eliminate local property taxes and fund its budget with revenue from taxes paid by nearby data centers.

Data centers aren’t abstract “Big Tech” projects. They represent the digital infrastructure that powers nearly every part of modern life — from banking and health care to small businesses, logistics networks and the smartphones in our pockets. They are also deeply embedded in Georgia’s economy.

In 2023 alone, the industry created roughly 30,000 direct jobs and supported more than 176,000 total jobs statewide.

These are stable, high-paying careers, many in construction, skilled trades and technical roles that don’t require a four-year degree. At a time when affordability is top of mind for many Georgians, these steady employment opportunities are a boon for working families.

The economic impact is just as significant.

Data centers contributed $25.7 billion to Georgia’s gross domestic product in 2023 and delivered $1.06 billion in state taxes and another $767 million to local governments. That revenue supports schools, public safety and infrastructure, and even helps make tax relief possible.

For proof, just look to Covington, in Newton County, which is moving forward on plans to eliminate local property taxes and fund its budget with revenue from taxes paid by nearby data centers.

And despite claims to the contrary, Georgia families are not subsidizing these facilities.

Large users like data centers pay the full cost of their electricity and the infrastructure required to serve them. And the industry is committed to continuing that practice.

In fact, revenue from new large customers, like data centers, has helped Georgia Power freeze residential rates for three years and even announce rate cuts for Georgia households — one this July and another at the end of the three-year rate freeze.

That wouldn’t be possible without the growth these projects bring to the grid.

Data centers are also committed to being responsible stewards of water resources and prioritizing efficient water practices. In Virginia, home to the world’s largest data center market, 83% of data centers use the same amount of water (or less) than the average large office building.

Welcome the industries of the future

In short, the positive impacts of data centers are helping make life more affordable for all Georgians in multiple ways. But there’s also a bigger strategic picture.

Georgia has spent the past two decades successfully recruiting finance, tech and manufacturing companies to invest in the state. Data centers follow those businesses because they need to be close to customers and networks.

Plus, data centers help foster the development of local labor pools in construction, operations, tech, and other key economic sectors. Without digital infrastructure, it’s harder to attract everything else.

That’s why shifting the playing field now or rolling back commitments made to attract investment is a risk. It threatens not just one sector, but Georgia’s hard-won reputation for stability and reliability.

Businesses choose Georgia because they know the state keeps its word. We shouldn’t jeopardize that trust.