Bills to Protect Ratepayers From Data Centers Fail in Georgia Legislature

During Georgia’s recent legislative session, a series of bills designed to regulate data center expansion, roll back tax exemptions, and protect ratepayers from rising utility costs ultimately failed to pass. Advocates, including Patty Durand of Georgians for Affordable Energy and Liz Coyle of Georgia Watch, expressed surprise and disappointment, highlighting that everyday Georgians are concerned about high utility bills and the environmental impact of large industrial data centers, such as noise and increased air pollution. Among the failed proposals were House Bill 1012, a Democratic-backed effort to impose a moratorium on new data center construction, which did not advance in the Republican-controlled legislature. Senate Bills 410 and 408 aimed to sunset a state tax exemption for data centers, currently in place since 2018 and projected to cost Georgia billions in revenue by 2027. Despite a University of Georgia analysis suggesting most data center construction would occur without the tax breaks, these bills also failed to reach a final vote. Republican state Sen. Chuck Hufstetler sponsored a bipartisan bill intended to require large electricity users, like data centers, to bear the full cost of infrastructure upgrades needed to serve them, rather than shifting expenses to residential and small business customers. This bill, supported by 80 percent of Georgians according to Hufstetler, also failed after a Senate session was abruptly adjourned. Even more modest efforts, such as proposals for increased transparency requiring data centers to disclose water and electricity usage and blocking local governments from signing non-disclosure agreements, failed to pass. Georgia Power, a major utility, countered concerns by stating its rate structure ensures large energy users pay more, which benefits other customers, and noted a recent rate freeze. However, consumer advocates argue that the scale of new grid infrastructure required for data centers will inevitably shift costs. The outcome means that Georgia’s current policies, including tax exemptions until 2032 and utility discretion on contracts, remain largely unchanged, allowing data center expansion to continue without new legislative oversight.