Georgia General Assembly Suspends Tax Breaks for Data Centers and Cryptocurrency Mining Operations
The Georgia General Assembly recently passed a bill that would suspend tax breaks for high-tech data centers and would not extend additional benefits to cryptocurrency mining operations. These operations, which rely on large banks of computer servers that consume significant amounts of energy, have raised concerns about their environmental impact among lawmakers.
In addition to addressing the issue of tax breaks for data centers and cryptocurrency mining operations, state lawmakers also set an election schedule for the state’s Public Service Commissioners. This move comes after years of delay in holding elections for these officials due to a voting rights challenge that has been making its way through the courts.
One of the measures that failed to pass the House was the proposal to re-establish a public advocate for utility issues, which would have provided a voice for utility consumers in the decision-making process.
The legislative session coincided with Georgia Public Service Commission hearings to address Georgia Power’s request for additional electricity, as well as a candidate qualifying period during which it was revealed that the PSC would once again be left off the ballot.
One of the bills awaiting Governor Brian Kemp’s signature seeks to address the issues surrounding data centers and their tax breaks.
Data center operations play a crucial role in the modern digital landscape, powering various services and platforms that people use daily. The tax breaks introduced in 2018 led to a significant increase in data center construction in metro Atlanta. However, the massive energy consumption of these data centers has prompted lawmakers to reconsider the tax breaks in light of their environmental impact.
Georgia Power’s recent request for more electricity to support the growing demand from new businesses, with 80% of that demand coming from data centers, further emphasized the need for regulatory scrutiny of these operations.
The bill passed by the General Assembly aims to suspend the tax break for data centers and establish a commission to study incentives for these operations. While opponents of the bill argue that it may hinder job growth and economic development, proponents believe that it is necessary to address the environmental concerns associated with data centers.
In addition to the tax breaks for data centers, the Senate passed a bill to re-establish the role of the Consumer Utility Counsel, which advocates for the interests of utility consumers. The negotiations between the PSC’s Public Interest Advocacy staff and Georgia Power to address the utility company’s energy plans have also garnered attention during the legislative session.
The issue of PSC elections has also been a point of contention, as the commissioners have not been on the ballot since the runoff election in January 2021. A Voting Rights Act lawsuit has put these elections on hold, prompting lawmakers to pass a bill that sets out a schedule for future elections, starting in 2025.
While the bill aims to maintain the staggered pattern of elections for the commissioners, critics have raised concerns about the extended terms that the current commissioners would serve under this plan. The lawsuit challenging the PSC elections under the Voting Rights Act is still pending, with the plaintiffs appealing the decision to the U.S. Supreme Court.
The outcome of these legislative actions and legal challenges will have significant implications for the regulation of data centers, cryptocurrency mining operations, and the oversight of utility companies in Georgia. The decisions made by lawmakers and regulatory bodies will shape the future of energy policy and environmental sustainability in the state.