The Night the Lights Will Go Out in Georgia: Regulatory Action Is Needed to Protect Communities From Footing the Bill of Data Centers’ Energy Demands
Written by Cassidy McMann and Dr. Guanchi Zhang
Data centers are proliferating across the country, fueled primarily by the recent Artificial Intelligence (AI) boom. Georgia has emerged as the fastest-growing hub for data center development. Although advocates for data centers tout benefits, such as tax revenue and jobs, data centers come with serious tradeoffs, like high energy demand. Data centers strain the electric grid, necessitating utility companies to build new infrastructure necessary to meet the surging demand. However, the cost of doing so is often passed onto residential consumers. Communities in Georgia are currently facing this issue. Georgia serves as an example of the importance of being cautious and mindful of data center development to protect residents against the economic burdens imposed by data centers. Regulators in Georgia, and in other states, need to take action now because it is not a matter of if a data center comes to your community, but when.
Georgia’s Data Center Industry
Data centers enable many modern digital services, such as cloud computing, online transactions, streaming, and AI applications.[1] The largest of data centers can contain 5,000 or more computer servers to support these technological services.[2] However, these servers take up large swaths of space; the size of a data center can range anywhere from 20,000 to over a million square feet, ranging from mid-sized to hyperscale.[3] Currently, there is between 4,000 to 6,000 data centers in the U.S.[4] In Georgia, the exact number also varies, but 97 data centers have been confirmed.[5] Georgia’s data center industry is booming, with data center construction increasing in Metro Atlanta by 76% in just the past year.[6] Data center developers are attracted to Georgia because it has two of the biggest fiber network routes in the nation along with a reliable grid.[7] The state’s lucrative tax breaks also attract tech companies looking to build data centers. Georgia’s sales and use tax exemption is expected to waive about $296 million in tax revenue.[8] Meanwhile, some local governments approved “hundreds of millions in property tax savings” to entice developers earlier this year.[9] For example, Fulton County’s Development Authority approved a $75 million tax break over ten years for Microsoft’s proposed data center campus in Union City.[10] Data center opponents question the necessity of such tax breaks considering the tech companies receiving them already rake in millions, or even billions, of dollars in revenue each year.[11] Microsoft alone earned “$212 billion in sales revenue and [had] a net income of $72.4 billion” for 2023.[12]
Data Centers’ Energy Demand
Data centers’ servers need electricity to operate and cooling systems to prevent overheating.[13] AI especially demands copious amounts of electricity because “advanced machine learning models require massive computational power for training and inference.”[14] For example, a ChatGPT search uses ten times the amount of energy than a Google search request.[15] In 2023, data centers accounted for more than 4% of U.S. electricity, and estimates suggest that number could increase to 12% by 2028.[16] Georgia is no different. In late 2023, to meet the increasing energy demand stemming from data centers, Georgia Power, the state’s largest utility,[17] “filed an updated Integrated Resource Plan (IRP), which projected a 6,600 megawatt (MW) increase in annual load demand by 2030.”[18] To compare, Georgia Power’s request to the state’s Public Service Commission (PSC) to add capacity to the grid was a mere 400 MW in 2022.[19] This sharp jump in load demand demonstrates just how quickly data centers are popping up in Georgia and how they are already impacting the state’s electricity needs.
Georgia Power’s request rose even higher in 2025 when the utility giant requested the PSC “to add 10,000 megawatts to its power generation fleet in the next five years.”[20] However, the PSC shared that bills for residential customers could go up by $20 or more if Georgia Power’s request is approved.[21] Evidence shows that Georgia Power’s “aggressive forecasts have [previously] overestimated electricity demand from data centers,” so the utility could be overbuilding for electricity that is not needed.[22] The PSC can act as an important check on utility companies like Georgia Power by deciding what kind of electricity a company puts on the grid and who pays for it.[23] For example, this past summer the regulatory body voted to freeze Georgia Power’s base rates through 2028.[24] The PSC will either approve or deny Georgia Power’s robust buildout by the end of 2025.[25]
Georgians’ electricity bills are already high and have been rising.[26] Between 2023 and 2025 the PSC granted six rate hikes for Georgia Power customers, causing the average residential bill to rise by $43 per month, or $516 per year.[27] Electricity use by data centers is significantly higher than previously expected and is a “key driver for near-term regional load growth.”[28] Data centers’ high energy demand strain the electric grid, in turn forcing utilities to build additional infrastructure.[29] These costly infrastructure upgrades are passed onto ratepayers, including residential customers.[30] Moreover, data centers encourage fossil fuel plants to remain open. For example, Mississippi Power’s Plant Daniel was “scheduled to retire its coal units in 2027,” until Georgia Power decided to purchased 750 MW from the plant.[31] In Georgia, Plant Scherer, a coal power plant owned by Georgia Power, was originally set to close in 2028.[32] However, the plant is now remaining open indefinitely to help support the increasing energy demand from data centers.[33] Furthermore, Georgia Power wants almost 60% of its requested 10,000 MW “to come from new or existing natural gas plants.”[34] Research shows that electrical load growth from data centers could “induce more near-term CO2 emissions” due to a reliance on existing coal- and gas-fired plants.[35]
Georgia’s Current Policy Framework
Data centers’ attraction to Georgia can be tied back to a 2018 law that created a sales tax break for equipment, “enabled a tax credit for job creation, and created a local property tax abatement.”[36] In 2024, the Georgia legislature passed a bill that would “suspend the exemptions,” but Governor Brian Kemp vetoed the bill, citing how it would “ ‘undermine investments’ ” and “ ‘inhibit infrastructure and job development.’ ”[37] A bill that would require data centers to share where it is going to be built, its estimated water and electricity use, and estimated sound level in order to receive state tax incentives also failed this year.[38] However, Georgia does require data centers to “submit an annual report detailing financial data such as job creation, payroll, and tax-deductible investments;” they are not required to report energy demands or use.[39] In November, the Georgia Department of Community Affairs (DCA) adopted new rules that require proposals for data centers be subject to state review.[40] The DCA expanded the definition of what is considered “development of regional impact” to now include data centers.[41] DCA oversees Developments of Regional Impact (DRIs), which “are large-scale developments that are likely to have regional effects beyond” the locality where they are located.[42] The DCA also responded to disagreement at the local level over how to treat data centers by creating a new “technological facilities” category.[43] However, these new state rules are not binding. The DRI process is intended to allow the public to review and comment on a proposed development.[44] Local decision-making authority is not limited by the DRI process or the DCA.[45] If a local community wishes to support or oppose a DRI, they may do so unrestricted.[46]
Data Centers Face Resistance At The Local Level
Some counties and cities in Georgia have responded to accelerating data center development by putting in place moratoriums and even outright bans. For example, the Atlanta City Council passed legislation “prohibiting construction near MARTA metro stations and along the Beltline.”[47] But there are some counties that openly welcome data centers. For example, Bartow County, which already houses various industrial manufacturing facilities, welcomed one data center and there is a second currently being built.[48] The county administrator cited the tax revenue that data centers rake in and the subsequent benefit of reducing tax burdens on residents as the reasons for welcoming these facilities into the community.[49] Counties that do have moratoriums have cited the need to update their local commercial and industrial zoning codes since neither even include the term ‘data center.’[50] Others acted in response to residents’ concerns over “electromagnetic fields and water supplies.”[51] These moratoriums signal that those counties will likely have ordinances addressing data centers once the moratorium is over.[52] The priorities of ordinances vary, with some only creating noise restrictions and the requirement of a buffer zone, and others requiring closed loop water usage.[53] However, there are a few pending ordinances that place restrictions on energy usage.[54]
With a moratorium currently in place until June, 2026, DeKalb County is working on drafting an ordinance that would restrict data centers to industrial areas and generally require a developer to first secure a special land-use permit.[55] The County seeks to protect the community from any potentially significant land, energy, and water consumption impacts.[56] At its core, the ordinance “will add data centers as a use in industrial areas and regulate their location, design, and provide supplemental review standards.”[57] The proposed ordinance rewards data centers that offset at least 45% of the facility’s total energy usage with renewables by allowing them to be built at most 150 feet higher.[58] A Noise Impact Assessment would also be required as part of the permitting process along with a Water Consumption and Sustainability Plan.[59] Importantly, the Water Consumption and Sustainability Plan must “demonstrate that the water usage shall not significantly strain DeKalb County’s water supply.”[60] The proposed ordinance also demands an Energy Consumption and Sustainability Plan.[61] That plan must include the “estimated energy load before construction and the daily operational load once constructed.”[62] Moreover, the Energy Consumption and Sustainability Plan shall outline “strategies for mitigating strain on local power infrastructure,” “[p]roposed improvements or alternatives to minimize the need for additional transmission lines,” and “[t]he use of sustainable alternatives for on-site water or power generation.”[63] Interestingly, the proposed ordinance incentivizes the redevelopment of existing industrial sites for data centers by not requiring a special land use permit “for the redevelopment, reuse, renovation, or reconstruction of a site.”[64]
Lumpkin County already has an ordinance in place addressing data centers. The ordinance requires an “annual independent audit” about a facility’s energy usage.[65] A water usage plan that demonstrates “the sustainability of water withdrawal from wells and its impact on the local aquifer or public water supplies” is required as part of the permitting application.[66] The ordinance also puts restrictions on noise, limiting daytime noise to 60 dBA and below and nighttime noise to 50 dBA beyond the property line.[67] If a facility exceeds these noise limitations, the County has discretion to require a noise reduction barrier or device be installed, however it is not an automatic requirement.[68] Looking at DeKalb and Lumpkin Counties’ ordinances, it is clear that some localities are creating stricter requirements than others. Although DeKalb’s ordinance is only a draft, it is more detailed and offers more protection than Lumpkin’s. The varying degrees of ordinances demonstrates how local communities in Georgia are uniquely addressing data center proliferation.
What We Can Learn From Georgia
As an emerging epicenter of data center development, Georgia has the potential to lead data center regulation, which could influence other states. Many counties in the state have already taken up this task by enacting moratoriums on data center development and passing ordinances that explicitly address data centers. Community leaders and government officials are increasingly faced with pushback from residents who do not want a data center in their community, and who are concerned about the impacts such a facility would have on their natural resources and electrical bill.[69] Resistance to data centers has quickly become the newest example of NIMBYism.[70] That is why it is important for communities to get ahead of the data center boom by drafting ordinances and passing moratoriums prior to the proposal of a data center. Having an ordinance or regulation already in place could reduce the pressure on local governments when it comes time to consider a data center permitting application. Establishing rules ahead of time may also lead to a more detailed and well-thought out end product. In turn, this could result in stronger protections for communities.
Georgia also demonstrates the importance of freezing utility rates for consumers. Although Georgia PSC’s current base utility rate freezes for Georgia Power are short sighted—only lasting until 2028—it shows a commitment to protecting residential customers from footing the bill for data center fueled grid infrastructure.[71] However, Georgia Power’s current plan for meeting anticipated MW demand relies heavily on fossil fuel-powered plants. This is why ordinances, like DeKalb County’s draft ordinance, are critical in incentivizing the use of renewable energy by data centers. There is no question that data centers are here to stay. States and local governments need to adapt and prepare for the data center boom by adopting ordinances and regulations that will prevent utility companies from passing the cost of grid buildout to residential consumers and will encourage the use of renewables for powering data centers.
Author Bio:
Cassidy McMann is a third-year joint J.D. and Master of Climate & Environmental Policy student from Highland, New York. Cassidy received her B.S. in Environmental Studies with a focus in Policy, Planning, and Law from SUNY College of Environmental Science and Forestry. She serves as the Technology Editor for the Vermont Journal of Environmental Law and is a 3L Senator for VLGS’s Environmental Law Society. Cassidy chose to pursue this topic after hearing the stories of residents from across the country fighting against data center proliferation in their communities. After law school, Cassidy hopes to use the knowledge and skills she’s gained to promote the enforcement of our environmental protection laws and regulations.
[1] Terry Nguyen & Ben Green, What Happens When Data Centers Come to Town? 3 (2025).
[2] Mary Ellen Klas, NIMBYs Are Coming for the Data Centers AI Needs, Bloomberg UK (Aug. 20, 2025), https://www.bloomberg.com/opinion/articles/2025-08-20/ai-and-crypto-data-centers-are-nimbys-new-target.
[3] J. Thomas Perdue, Why Are So Many Data Centers Popping Up In Georgia, Ga. Pub. Pol’y Found. (May 8, 2025), https://www.georgiapolicy.org/news/why-are-so-many-data-centers-popping-up-in-georgia/.
[4] The exact number of data centers located in the U.S. varies by source. The lack of clear knowledge of just how many data centers there are in the country or any given state demonstrate the lack of transparency that surrounds data centers. Data centers worldwide by country 2025, statista, https://www.statista.com/statistics/1228433/data-centers-worldwide-by-country/?srsltid=AfmBOool6SMis8Df9DxSEISuK4K94Om-BM-lkL0oe-FNQ34KS6P02HAt (last visited Nov. 22, 2025) (4,165 data centers); United States of America Data Center Market Overview, Cloudscene, https://cloudscene.com/market/data-centers-in-united-states/all (last visited Nov. 22, 2025) (5427 data centers); USA Data Centers, Data Center Map, https://www.datacentermap.com/usa/ (last visited Nov. 22, 2025) (4214 data centers).
[5] Data Centers: Transparency Makes Good Neighbors, Science for Georgia, https://scienceforgeorgia.org/knowledge-base1/data-centers-big-power-small-jobs/ (last visited Nov. 22, 2025).
[6] Mary Romano et al., The Resource-Draining Origins of Our AI Assistants: Potential Policy Solutions to the Unregulated Growth of Georgia’s Data Center Industry, 26 J. Sci. Pol’y & Governance, June 2025, at 3.
[7] Id. at 1–2.
[8] Zachary Hansen, Atlanta Was Primed For the Data Center Boom. All It Took Was A Spark, The Atlantia Journal-Constitution (June 18, 2025), https://www.ajc.com/news/2025/06/atlanta-was-primed-for-the-data-center-boom-all-it-took-was-a-spark/.
[9] Id.
[10] Zachary Hansen, Fulton Board Approves $75M Tax Break For Microsoft Data Center, The Atlanta Journal-Constitution (June, 25, 2024) https://www.ajc.com/news/business/fulton-board-approves-75m-tax-break-for-microsoft-data-center/Q3K2XGXZD5DGRJUPUB3ENQGB4A/.
[11] Id.
[12] Id.
[13] J. Thomas Perdue, supra note 3.
[14] Nyguen & Green, supra note 1, at 4.
[15] Id.
[16] Id. at 5.
[17] About Us, Georgia Power, https://www.selectgeorgia.com/about-us/our-company/# (last visited Nov. 26, 2025).
[18] Romano et al., supra note 6, at 4.
[19] Kristi E. Swartz, Georgia Power says answer to state’s data center surge is more natural gas, The Atlanta Journal-Constitution, https://www.ajc.com/business/2025/10/georgia-power-says-answer-to-states-data-center-surge-is-more-natural-gas/.
[20] Kristi E. Swartz & Drew Kann, Analysts warn Georgia Power bills will rise if PSC approves data center buildout, AJC (Nov. 24, 2025) https://www.ajc.com/business/2025/11/analysts-warn-georgia-power-bills-will-rise-if-psc-approves-data-center-buildout/ (“For comparison, each of the four nuclear reactors at Plant Vogtle near Augusta provides roughly 1,100 megawatts.”).
[21] Id.
[22] Id.
[23] Swartz & Kann, supra note 20.
[24] Id.
[25] Id.
[26] See Chauncey Alcorn, Why Electricity Rates In Georgia Rose $516 Per Year On Average, Capital B Atlanta (May 19, 2025), https://atlanta.capitalbnews.org/georgia-psc-election-2024-energy-costs/.
[27] Id.
[28] EPRI, Powering Data Centers: U.S. Energy System and Emission Impacts of Growing Loads 25 (2024).
[29] Nyguen & Green, supra note 1, at 3.
[30] Id.
[31] Id. at 11.
[32] Drew Kann & Zachary Hansen, Why Big Tech Sees Georgia Farland As Ripe For Data Centers, The Atlanta Journal-Constitution (Dec. 5, 2025), https://www.ajc.com/business/2025/12/why-big-tech-sees-georgia-farmland-as-ripe-for-data-centers/.
[33] Id.
[34] Swartz, supra note 19.
[35] EPRI, supra note 28, at 5.
[36] Kala Hunter, How Georgia Became The ‘Wild West’ Of Data Centers. Is Transparency on the Horizon?, Ledger-Enquirer, https://www.ledger-enquirer.com/news/environment/article312041943.html (Sept. 15, 2025).
[37] Id.
[38] Id.
[39] Romano et al., supra note 6, at 4 (citing O.C.G.A § 560-12-2-.117).
[40] Mary Landers, Georgia Board Approves New Review Process For Large Data Centers, Ga. Recorder (Nov. 21, 2025), https://georgiarecorder.com/2025/11/21/georgia-board-approves-new-review-process-for-large-data-centers/.
[41] Id.
[42] Ga. Dep’t of Cmty. Affs., Synopsis of Rules Regarding the Developments of Regional Impact Process (2025).
[43] Landers, supra note 38.
[44] Id.
[45] Id.
[46] Id.
[47] Romano et al., supra note 6, at 5.
[48] Id
[49] Id
[50] Hunter, supra note 36.
[51] Id.
[52] Id.
[53] Id.
[54] Id.
[55] Zoe Seiler, Dekalb County’s Proposed Data Center Regulations Explained, Decaturish (Dec. 16, 2025), https://www.decaturish.com/business/dekalb-countys-proposed-data-center-regulations-explained/article_08689a5c-1342-421c-8b09-17c1f773febb.html.
[56] Data Center Text Amendment, DeKalb Cnty. Ga., https://engagedekalb.dekalbcountyga.gov/data-center-text-amendment (last visited Dec. 18, 2025).
[57] Id.
[58] Id.
[59] Id.
[60] Id.
[61] Id.
[62] Id.
[63] Id.
[64] Id.
[65] Lumpkin Cnty. Ga., Mun. Code art. IV chpt. 9 (2025), https://library.municode.com/ga/lumpkin_county/codes/code_of_ordinances?nodeId=PTIICOOR_CH27LAUSPEZO_ARTIVACRECOUSAP_CH9COCE_S27-4.9.1DE.
[66] Id.
[67] Id.
[68] Id.
[69] Zachary Hansen, As Data Centers Grow Larger, So Does Pushback Across Georgia, The Atlanta Journal-Constitution (June 18, 2025), https://www.ajc.com/news/2025/06/as-data-centers-grow-larger-so-does-pushback-across-georgia/.
[70] Id.
[71] Ga. Pub. Serv. Comm’n, 2025 Data Center Fact Sheet (2025).