Only about 30% of Georgia’s data center buildout is tied directly to the 2018 sales and use tax exemption, down sharply from an earlier 90% estimate.
The state gave up $472 million in FY 2025 revenue for data center tax breaks, but the audit credits the sector with 28,350 construction jobs, 5,471 operations jobs, and billions in added economic value.
Georgia now has 166 data centers, leading surrounding states and positioning itself as a major AI and cloud hub, but most of that growth likely would have happened without the incentive.
The big constraint is power: more than 8,000 MW of forecast new demand has regulators worried about overbuilt grid infrastructure, higher retail rates, and heavier dependence on fossil generation.
State agencies have paused some data center reviews and are pushing regional oversight for large facilities, while Georgia Power is set to add nearly 10,000 MW with cost recovery leaning on large-load customers like hyperscalers.
For AI infra planners, Georgia is attractive on scale and policy stability for in-flight projects, but long-term risk sits in power pricing, environmental pushback, and potential retrenchment of incentives.
The full piece is worth reading for a clearer picture of how tax policy, grid buildout, and AI data center growth are colliding in one of the key southeastern markets.
Source: Report: 30% of Georgia’s data centers traced to 2018 tax break • The Georgia Virtue
