In recent developments, it has been revealed that incoming electric vehicle and battery factories in Georgia have significant electricity needs. However, Georgia Power stated in hearings this month that the majority of its projected demand crunch – roughly 80% – is driven by data centers, rather than electric vehicle manufacturing.
Data centers, the backbone of our digital lives, are known for their high electricity and water consumption. According to Raul Martynek, CEO of DataBank, the demand for data centers will continue to rise as long as human reliance on technology does not wane.
An analysis by The Atlanta Journal-Constitution found that there are at least 18 data center campuses either under development or expanding in Georgia, primarily in the Atlanta area. Local and state officials have actively courted the industry, offering tax incentives and access to power and water resources to attract data center developers.
Despite criticism that data centers create few jobs and may not warrant the generous tax breaks they receive, the demand for these facilities remains strong. Companies like Amazon, Facebook, and Microsoft operate their own data centers, while developers like Vantage Data Centers and DC Blox are rapidly expanding their presence in Georgia.
Metro Atlanta is now ranked as the sixth-largest data center market in the U.S., with individual data center campuses boasting power capacities exceeding 150 MWs. These facilities are not only massive in size but also expensive to build, often costing billions of dollars. However, the local economic impact of these centers is limited, as the servers are often manufactured overseas or by companies based elsewhere.
As Georgia’s data center market continues to grow, concerns have been raised about the strain on the state’s infrastructure. Data center servers run 24/7, consuming large amounts of electricity and water to stay operational. Georgia Power’s long-range energy plan includes adding almost 3,400 MW of new capacity, with about 70% likely coming from fossil fuel sources.
The expansion of data centers in Georgia also poses challenges in terms of water supply. Counties like Douglas, which host large data center campuses, are investing in water infrastructure to meet the growing demand. However, the rapid growth of data centers could strain these resources and hinder the community’s ability to expand.
Republican PSC Chairman Jason Shaw, who played a key role in creating tax breaks for data centers in Georgia, is among those evaluating Georgia Power’s plans. Concerns have been raised about the potential impact of data centers on other customers’ rates, prompting a reevaluation of the policy.
As Georgia grapples with the rapid growth of data centers, stakeholders are faced with balancing the economic benefits of the industry with its potential strain on resources and infrastructure. The future path of data center development in Georgia will likely be shaped by ongoing discussions and decisions regarding energy sources, tax incentives, and water supply management.
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