ATLANTA — Anger and opposition to the rapid rise of data centers across Georgia has led to a surge of bills that would clamp down on the resource-consuming industry.

Georgia legislators have proposed seven bills regulating data centers by eliminating tax breaks, prohibiting costs from being passed on to residential electricity customers, or temporarily barring their construction entirely.

Data centers — hulking industrial buildings that power artificial intelligence and technology companies — have emerged as one of the hottest topics at the Georgia Capitol this year as they’ve proliferated across the state’s landscape in recent years. There are over 200 data centers in Georgia, according to Baxtel, a data center industry research firm.

State Sen. Matt Brass, the chairman of the powerful Senate Rules Committee, said residents are worried about the impact of large data centers being built in their communities.

Brass proposed Senate Bill 410, which would end Georgia’s sales tax exemption for new data centers but preserve it for existing facilities. Gov. Brian Kemp vetoed a bill in 2024 that would have eliminated the tax break entirely, citing concerns it would undermine business investment in the state.

“It started with concerns from folks back home. There’s a lot of angst over it,” said Brass, R-Newnan.

Data centers will still invest in Georgia even if they don’t get a tax break, Brass said, citing the state’s energy rates, business climate, weather and property values.

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

Georgia taxpayers effectively gave away $474 million to data centers during the fiscal year that ended in July, according to a recent report by the Georgia Department of Audits and Accounts.

Data centers produced 8,505 construction jobs and 1,641 operations jobs with a combined $1.2 billion added to the state’s economy, according to the department’s summary of the report.

The Data Center Coalition, a trade association that includes Amazon, Google and Meta, said Georgia has become the fastest-growing data center market in the country.

“Data centers are committed to being responsible neighbors that pay their full cost of service for the energy they use,” said Khara Boender, director of state policy for the Data Center Coalition. “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.”

Rising energy costs and data centers have become a major campaign issue this year after two Democrats unseated Republican incumbents last fall in elections for the Public Service Commission, which regulates utilities.

State Rep. Ruwa Romman, D-Duluth, proposed a moratorium on new data center construction until March 1, 2027 in House Bill 1012.

“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,” said Romman, a Democratic candidate for governor. “They come to the table with all these promises, and when those promises don’t come true, it’s too late.”

Another bill that would protect residential customers from electricity costs of data centers is already advancing through the legislative process this year. Senate Bill 34, sponsored by Senate Finance Chairman Chuck Hufstetler, R-Rome, was debated last year but is being revived in committee hearings this week.

Other legislation calls for local governments to make public data centers’ water and electricity usage.

Data center bills pending in Georgia

• SB 34: Prohibits costs associated with data center fuel generation and transmission from being included in residential electricity rates.
• SB 408: Sunsets Georgia’s sales tax break for data centers on Jan. 1, 2027.
• SB 410: Eliminates sales tax exemptions for new data centers.
• SB 421: Requires local governments to disclose data centers’ water and electricity usage.
• HB 528: Requires data centers to report their water consumption, electricity usage and community impacts.
• HB 559: Sunsets Georgia’s sales tax break for data centers on Dec. 31, 2026.
• HB 1012: Bans new data center construction until March 1, 2027.