OpenAI, Effingham Industrial Development Authority Discuss Data Center Project Revenue, Jobs
The Effingham County Industrial Development Authority has approved a $20 billion incentive package for a new OpenAI data center near Rincon, Georgia. The project, which includes a 15-year, 50% property tax abatement, is expected to create 1,000 jobs and generate significant tax revenue. Residents have raised concerns about potential environmental impacts and rising energy costs, despite OpenAI's commitments to manage power and water usage.
The Effingham County Industrial Development Authority (ECIDA) has approved a substantial incentive package for a new OpenAI data center, projected to be a $20 billion investment in the Savannah Gateway Industrial Hub near Rincon, Georgia. This project aims to create 1,000 full-time jobs, positioning it as one of the region's largest economic developments.
The approved agreement includes a 15-year, 50% property tax abatement for OpenAI. In return, the company will commit to paying taxes based on the county's 2026 millage rate for the duration, with the ECIDA estimating that the county and school system will receive more tax revenue than without the abatement. Brandt Herndon, chief operating officer for the IDA, stated that the project is expected to become Effingham County's largest taxpayer, funding schools, public safety, and infrastructure.
However, the project faces growing opposition from residents concerned about potential environmental impacts, rising energy costs, and whether the incentives truly outweigh the economic benefits. OpenAI has stated it will cover power usage costs and plans for the facility, which could require up to 3.2 gigawatts of power and use about 30,000 gallons of water per day, to utilize a closed-loop water system and reduce grid consumption during peak demand. The company will also invest in local education pathways.
OpenAI's "Project Camellia" will be a 1,440-acre campus with four buildings totaling 720,000 square feet, supporting both AI training and inference. The company is committed to minimum benchmarks of a $20 billion investment and an initial 400 full-time jobs, with growth to 1,000. The Effingham County School District anticipates receiving approximately $32 million in property and sales tax revenue from the project, which will allow for investments in teacher salaries, lower millage rates, and student opportunities, according to ECSD Communications Coordinator Tiffany Altman.