Georgia Lawmakers Propose Slew of Bills to Curb Data Center Growth

Backlash over proliferation of resource-intensive data centers fuels legislative action

Jan. 30, 2026 at 9:47am

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Facing growing public opposition, Georgia legislators have proposed a series of bills that would clamp down on the rapid expansion of data centers across the state. The proposed measures range from eliminating tax breaks for new data centers, prohibiting the passing of electricity costs to residential customers, and even temporarily halting new data center construction altogether.

Why it matters

The rapid growth of data centers in Georgia has sparked concerns from local communities about their impact on resources like energy and water. Lawmakers are responding to this public backlash by introducing legislation that aims to rein in the industry's expansion and force data centers to be more accountable to the communities in which they operate.

The details

The proposed bills include measures to end Georgia's sales tax exemption for new data centers, require data centers to report their water and electricity usage, and even impose a temporary moratorium on new data center construction. Supporters of the legislation argue that data centers have proliferated across the state with little oversight or regulation, and that it's time to ensure they are not overburdening local communities.

  • In 2024, Georgia's governor vetoed a bill that would have eliminated the state's tax break for data centers.
  • During the fiscal year ending in July 2026, Georgia taxpayers effectively gave away $474 million in tax breaks to data centers.

The players

Matt Brass

State Senator and chairman of the powerful Senate Rules Committee, who proposed a bill to end Georgia's sales tax exemption for new data centers.

Ruwa Romman

State Representative and Democratic candidate for governor, who proposed a moratorium on new data center construction until 2027.

Chuck Hufstetler

State Senator and chairman of the Senate Finance Committee, who sponsored a bill to protect residential customers from electricity costs associated with data centers.

Khara Boender

Director of state policy for the Data Center Coalition, a trade association representing companies like Amazon, Google, and Meta.

Georgia Department of Audits and Accounts

State agency that reported Georgia taxpayers effectively gave away $474 million in tax breaks to data centers in the fiscal year ending in July 2026.

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What they’re saying

“There's all these reasons they want to come here, and the tax incentive I don't believe is one of them.”

— Matt Brass, State Senator (covnews.com)

“Before we permanently alter the landscape of our state, we have an obligation to properly regulate and assess both the benefits and impacts of these data centers on our communities.”

— Ruwa Romman, State Representative and Democratic candidate for governor (covnews.com)

“Data centers are committed to being responsible neighbors that pay their full cost of service for the energy they use. We will continue to work with stakeholders at the state, local and industry level to strike the right balance that maximizes the benefit to Georgia taxpayers, protects against rate increases, and ensures data centers are a net positive for the state.”

— Khara Boender, Director of state policy for the Data Center Coalition (covnews.com)

What’s next

The proposed bills are currently making their way through the Georgia legislature, with some already advancing through committee hearings. The outcome of these legislative efforts will have significant implications for the future growth and regulation of data centers in the state.

The takeaway

The surge of bills targeting data centers in Georgia reflects a growing public backlash against the rapid proliferation of these resource-intensive facilities. Lawmakers are now grappling with how to balance the economic benefits of data centers with their impact on local communities, setting the stage for a high-stakes debate over the industry's future in the state.