Atlanta City Council Considers Ban on Data Centers Near Beltline

In a move aimed at preserving the pedestrian-focused developments along Atlanta’s popular Beltline trail loop, city councilmembers Jason Dozier and Matt Westmoreland have introduced bills to ban data center development within a half-mile of transit centers and the 22-mile loop of multi-use trails.

The legislation follows similar bans on new storage facilities, gas stations, and drive-thru restaurants within the Beltline overlay district. Councilmember Dozier explained, “For every data center that we build, an apartment building or commercial building or grocery store is not being built. We want to create these spaces that have people walking, biking, and taking transit. Data centers don’t really meet that intent.”

Data centers, which are effectively warehouses filled with computer servers, have seen a significant increase in construction in metro Atlanta. Since 2023, data center construction in the area has increased by 211%, outpacing other major data center markets across the country. The demand for more server storage space, driven by the growing prevalence of artificial intelligence, has led to the rapid growth of these facilities. Lawmakers and residents are showing increased scrutiny towards data centers due to their immense scale and energy demands. The legislation aims to promote pedestrian-friendly developments and prioritize space for apartments, commercial buildings, and transit-oriented establishments. Existing data centers in the area will be unaffected by the ban, but future expansion may be restricted.

While acknowledging the need for data centers, Councilmember Westmoreland emphasized the importance of their location. He stated, “I understand we need data centers and we need more of them — just not right here,” referring to the Beltline and near transit stops. If the legislation is adopted, existing data centers in these areas will be unaffected but may be prohibited from expanding.

One of the largest data center facilities near the Beltline is owned by Qualified Technology Services (QTS) along Jefferson Street. The facility, which predates the Beltline trail, has undergone multiple expansions in the past 15 years. QTS faced pushback for requesting a $45 million tax break from the Development Authority of Fulton County for its latest expansion, a request that was later withdrawn.

Criticism has been directed at local development authorities, such as Develop Fulton, for providing tax incentives to data center projects amid the sector’s rapid growth. Develop Fulton recently approved a $10 million tax break for X Corp. (formerly Twitter) for computer services at the QTS data center. When asked about the potential data center ban, Develop Fulton spokesperson Daniella Gutierrez emphasized the need for evaluating economic development opportunities on a case-by-case basis.

Governor Brian Kemp vetoed legislation that would have suspended a statewide sales tax break program for new data centers, citing concerns about the financial return on investment. The legislation was also influenced by Georgia Power’s request for additional electricity-generating capacity to meet the demand from data center projects across the state, which are largely powered by fossil fuels.

Councilmember Dozier highlighted the importance of preserving light industrial use along the Beltline and near transit stops, noting that data centers’ utility needs and limited job creation make them a poor fit for these areas. He stated, “We want to be thoughtful about preserving that light industrial use…But I think data centers are just in a class of their own.”

As the debate over data center development along the Beltline continues, stakeholders will be closely watching the outcome of the proposed legislation and its potential impact on future economic development in the area.

© 2024 The Wall Street Journal. Distributed by Tribune Content Agency, LLC.

https://www.govtech.com/analytics/atlanta-considers-data-center-ban-near-popular-trails – Atlanta Considers Data Center Ban Near Popular Trails