Data centers debate pits industry vs. environmental activists

The debate over a tax break the data center industry has enjoyed in Georgia for the last six years has moved from the General Assembly to the governor’s office.

The legislature passed a bill during this year’s session suspending for two years a state sales tax exemption on purchases of data center equipment aimed at attracting more data centers to Georgia.

The measure also would create a 14-member state commission to study how the tax break has been affecting the state’s existing electric grid and energy supply and make recommendations by June 30, 2026, on how those impacts should be addressed.

While environmental advocates are urging Gov. Brian Kemp to sign the bill, representatives of the data center industry are asking him to veto it. Kemp has until Tuesday, May 7, to sign or veto legislation the General Assembly passed this year.

Republican legislative leaders got behind House Bill 1192, arguing for the need to slow the rush of data centers lured to Georgia by the tax break. Since the sales tax exemption was approved in 2018, such high-profile companies as Microsoft, Meta, and Google have set up data-center operations in the Peach State.

The bill’s supporters said the industry’s rapid growth is putting a strain on the state’s capacity to supply enough electricity for the power-hungry data centers.