Georgia state lawmakers spent months weighing proposals meant to curb the spread of data centers as artificial intelligence drives new demand for power, but left their annual legislative session without adopting a moratorium on new facilities, according to the Associated Press. As election season approached, activists and Democrats said the lack of stronger action—and the prospect of continued growth—could become a political issue at the ballot box.
Judy Mullis, an activist who is fighting a proposed data center near Newnan, southwest of Atlanta, said lawmakers “failed us” by not acting and accused them of prioritizing “big money.” Mullis described herself as a former Republican who voted for Democrats “for the first time ever” in the utility commission race, a signal she and other opponents hope to repeat in other contests.
Cyndie Hutchings, another activist, said opposition to data centers could swing elections in Georgia. She is running as a Democrat to unseat Vance Smith, a longtime Republican state representative, in a district southwest of Atlanta, and said the issue has changed how some lifelong Republican voters approach politics.
The Associated Press reported that Georgia has become a top site for new data centers, driven in part by utilities seeking to sell electricity and by tax breaks estimated to cost state and local governments nearly $3 billion in the year beginning July 1. Critics say that “gold rush” has fueled opposition across the state even in places where Republicans dominate local government, and Democrats see anger over the issue as a potential opening in a battleground state.
Democrats pointed to prior election results as evidence that the issue can translate into votes. The AP said opposition to data centers and discontent over rising electricity rates helped Democrats win upset victories last year in statewide elections for the Georgia Public Service Commission, which regulates utilities. This year, Democrats are looking to win the governor’s office for the first time in 24 years and to move toward a majority in the 180-member state House, the AP reported.
During the session, the AP said Georgia lawmakers never seriously considered a moratorium on new data centers, though they debated ways to protect other electricity ratepayers from the costs associated with serving the new load. The Public Service Commission, the AP reported, passed rules last year intended to protect Georgia Power customers from paying for generation or transmission investments needed for data centers. At the same time, commissioners approved what the AP described as a large expansion in electric generating capacity by Georgia Power, a subsidiary of Atlanta-based Southern Co.
The utility disputed the alarm about rising rates. Georgia Power told the AP that fears were misplaced and pointed to a rate freeze and projections that revenue from data centers could reduce future rates. In a statement Friday, spokesperson Matthew Kent said, “Data center growth in our state means large energy users pay more so you pay less.”
Critics argued that residential and other customers could still end up absorbing costs. State Rep. Brad Thomas, a Republican who chaired a special committee on resource usage, said the “No. 1 concern” heard from people across the board was that residential ratepayers would face higher bills due to infrastructure investments for data centers and demand growth.
While some lawmakers sought to strengthen existing commission rules, the AP reported that efforts to turn current language into something more enforceable fell short. It said Republican state Sen. Chuck Hufstetler argued existing language is “extremely weak and doesn’t protect the consumers,” and that he joined Democrats earlier in the session to try to push stronger language. That effort was blocked when Republican Senate leaders, including Lt. Gov. Burt Jones, who is running for governor, abruptly adjourned the day the move was to proceed, prompting Democrats to complain.
The Associated Press also reported that efforts to restrict tax breaks for data centers stalled. It said Republican Gov. Brian Kemp vetoed a bill to end data center tax breaks in 2024, but the issue grew more urgent as the value of those incentives ballooned into the billions. The AP reported that the House did not take up Senate proposals to curtail those tax breaks.
Khara Boender, of the Data Center Coalition, said Friday that legislation to restrict the incentives would “discourage future investment” and signal that Georgia is “closed for business.” Jones, the AP reported, has also faced accusations that he favors data centers because his family owns an interest in a real estate development that is courting them; Jones said in a Friday statement that it was unfortunate the House did not act and added, “Like President Trump, I believe Georgia ratepayers should not foot the bill for the energy demands of data centers.”
Others pointed to Georgia Power’s influence and to private money tied to the industry. Mark Woodall, a lobbyist for the Sierra Club, said, “They had a choice, and they chose big business.” Hutchings and Mullis, for their part, framed the issue as an opportunity for Democrats to present themselves as a different choice going into races where utility regulation and state policy will shape how costs and incentives are handled.