The rapid growth of data centers in Georgia and their rising energy demands have some lawmakers concerned about the long-term cost to utility customers.
U.S. Sen. Raphael Warnock is among a group of senators calling for safeguards to protect ratepayers. Warnock and five other lawmakers have signed a letter to the chair of the Federal Energy Regulatory Commission, urging action to prevent the public from bearing the cost of increased energy spending tied to data center development.
The letter says utility companies are spending billions of dollars to ensure the power grid can meet the growing demand from new data centers, with those costs ultimately passed on to customers.
The senators warn that without federal action, inaction could lead to unjust or unreasonable increases in energy bills that many households cannot afford. In one example cited in the letter, energy rates in the Mid-Atlantic region rose by more than $14 billion in a single year.
Georgia is one of the nation’s leading hubs for data centers, with 63 facilities currently operating, dozens under construction, and hundreds more proposed, mostly across metro Atlanta. Warnock says his goal is to keep energy rates affordable as the state continues to attract new development.
A major draw for data center developers is Georgia’s relatively low energy costs. Regulators recently approved Georgia Power to add 10 gigawatts of new generating capacity, the equivalent output of five Hoover Dams with about 80 percent of that capacity slated for data center use. The projects bring economic benefits, including thousands of construction jobs and millions of dollars in property tax revenue.
However, the Georgia Department of Audits and Accounts says generous tax incentives in place since 2018 have also fueled the boom. The state offers data center tax breaks totaling about $474 million a year. A state audit found most of the projects would have moved forward even without those incentives, raising concerns the state may be giving up nearly half a billion dollars annually without necessity.
Critics also point to potential long-term environmental impacts tied to increased energy production. There are additional concerns that if some proposed data center projects are ultimately built outside Georgia, customers could be left paying for surplus energy capacity already added to the grid.
As development continues, Warnock says protections are needed to ensure Georgia residents are not left footing the bill as the state becomes one of the nation’s top destinations for data centers.
WSB Radio’s Michelle Wright contributed to this story.
