James_March-April_2026_web - Flipbook - Page 51
eorgia’s data center debate is stealing
headlines and dominating discussion
under the Gold Dome this legislative session, a rare issue where the battle lines
are not drawn along party lines as lawmakers on both sides of the aisle get feedback from constituents and ponder eye-popping financial numbers.
A stream of bills are floating around the Capitol as
we speak; some looking to curb tax incentives, some
seeking clarity on water consumption and electricity
usage numbers, and others still looking to put a moratorium on data center construction entirely. But as
lawmakers wrestle with potential new rules and regulations, industry leaders warn that too many roadblocks
could curb investment and risk Georgia’s position near
the forefront of the AI and cloud computing explosion
that has come to define the global economy.
all trying to do the same thing. We’re all trying to make
sure that data centers are not unduly subsidized on the
one hand, but also not totally stamping out the business
on the other. It’s a balance, and I think allowing flexibility at the regulatory level is a better idea than setting
rules in stone while the industry grows.”
Another worry is the major water usage that data
center facilities use to cool their servers. In the past,
some data centers used evaporative water cooling,
converting water resources to steam. The industry met
this challenge by developing closed-loop cooling, which
requires only one draw of water that is continuously
used for cooling. Per Poole, “that’s the only kind of water
system we use, and we’re proud of that.”
ADDRES S I N G M A J O R C O N C ER N S
The number one concern voiced by Georgians
about data centers is energy affordability. That same
unease likely had much to do with last year’s pair of
Public Service Commission elections, where Democrats
Alicia Johnson and Peter Hubbard knocked off Republican incumbents to take two seats on the five-member
board that oversees the state’s utilities. It’s also driving legislation this year, with multiple bills seeking to
ensure the costs for constructing new methane-burning
facilities are borne only by data centers.
But Georgia Power and the Public Service Commission have already taken action to protect ratepayers,
they both consistently state that data centers have not
increased rates. Georgia Power’s “large-load power user”
(over 100MW loads) tariff requires large data centers to
foot the bill for the new energy they need, and that they
sign 15-year contracts. This locks them into their new
Peach State home and ensures residential customers are
protected. Thanks to this arrangement, Georgia Power
executives say their data center agreements will create
“downward pressure” on rates that will equal $8.50 a
month in savings for the typical residential customer.
Alan Poole, General Counsel for Georgia-based data
center company DC BLOX, told JAMES “I think we’re
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