The Atlanta Journal-Constitution
Proposed incentive is for data center for social media’s X.
A Fulton County agency is considering granting a more than $10 million property tax break to the social network belonging to the world’s richest man — Elon Musk — an incentive for computers in an existing Atlanta data center that would cre- ate no new jobs.
The Development Author- ity of Fulton County (DAFC) will consider the proposed tax break today for X Corp., formerly Twitter, that will reduce the company’s tax bill over a 10-year period. Data centers are among the hottest sectors in commer- cial real estate and the state of Georgia already provides significant financial incen- tives for developers of such projects to build in the state.
The social media plat- form, which is owned by the Tesla CEO, owns and operates computer storage space with Qualified Technol
ogy Services (QTS) data cen- ter at 1025 Jefferson Street. The authority’s agenda said the tax savings are needed to prevent X from choos- ing to install the equipment in Portland. The proposed project, which is estimated to be a $700 million invest- ment, would not prompt any new jobs in Fulton County — instead retaining 24 cur- rent X employees.
The agency has faced
intense scrutiny in recent years for doling out tax sav- ings to real estate develop- ers in hot neighborhoods where critics contend they are not needed.
More recently, tax abate- ments for data centers and similar developments have become a divisive topic for the authority, which recently rebranded itself as Develop Fulton.
The QTS data center was
the center of a controver- sial tax abatement request over the summer, where it requested $45 million in tax savings for an expansion that was already under construction. It prompted more than 100 written comments from Howell Station neigh- borhood residents and com- munity stakeholders — nearly all opposed. The item was shelved and has yet to return.
Arthur Toal, president of the Howell Station Neigh- borhood Association, said in an email that X officials did not reach out to neigh- bors about the requested tax abatement, which he said “will come from our schools and infrastructure.”
The Develop Fulton agenda said the X investment will generate $16.6 million in new taxes over a decade despite the abatement.
“Develop Fulton’s assis- tance can make the difference to secure millions of dollars in new tax revenue for our region that may other- wise go to Portland or other locations, as well as a high likelihood of securing addi- tional future investment for Fulton County, the City of Atlanta, and (Atlanta Public Schools),” Develop Ful- ton Executive Director Sar- ah-elizabeth Langford said in an email.
Development authori- ties play significant roles in recruiting jobs and invest- ment, but critics say Develop Fulton often offers tax breaks in exchange for few public benefits or for projects that would have been built any- way. A 2021 Atlanta Jour- nal-constitution investigation found the authority provided preliminary or final approval for more than $328 million in tax breaks in a three-year period, largely in fast-growing areas like the Beltline or Midtown.
An investigation that year by the AJC also found a culture of loose financial controls at the authority, leading to an overhaul of the authority’s board and its policies.
But in recent months, the board has again considered awards that have proven controversial, particularly within the city limits. Since April, it has awarded more than $110 million in tax savings to more than a half-dozen developers.
The Develop Fulton board will also consider finalizing a $32 million tax abatement for a data center at Tilford Yard, a former rail yard that was exempt from property taxes during its decades of ownership by CSX. Edged Energy plans to build three warehouses to store computer equipment and is valued at more than $1.5 billion. The abatement passed in September by a razor-thin 5-4 vote.
A third tax break under consideration is for a speculative industrial development in Union City.