georgia’s data center standoff

Georgia Data Center Standoff | GTI Snapshot
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Flash Analysis Georgia · Energy Policy

Georgia's Data Center Standoff: Who Pays for the Power?

Three bills. A $2.5B tax break at stake. One question the legislature still hasn't answered in law.

$2.5B
Tax break value at stake for data centers
10K
Megawatts of new grid capacity approved for data centers
1595
House vote on HB 1063 — bipartisan appetite is clear
SB 410
● Passed Senate 32–21 → Now in House
Repeals sales tax exemptions for new data centers. Includes ratepayer contract language — but only in the preamble, not codified in statute. Critics say courts may ignore it entirely.
HB 1063
● Passed House 159–5 → In Senate
Requires longer contracts and down payments from data centers. Georgia Power didn't oppose. The industry preferred it over SB 34. Still active — may be folded into SB 410 negotiations.
SB 34
● Stalled — No Floor Vote. Effectively shelved.
The strongest protection. Would have explicitly banned data center electricity costs from residential rates. Senate adjourned rather than vote. Sponsor: "I'm unsure if it will come back."
The Critical Gap The ratepayer protections in SB 410 are in the bill's preamble — not codified into law. Sen. Hufstetler, who chairs the committee that heard the bill, said plainly: "It's not codified into law, which would be my preference." If challenged in court, that language may carry no legal weight.
Will the House strengthen SB 410's ratepayer language — codifying it in statute rather than the preamble? The 159-5 House vote on HB 1063 signals they have the will.
Will Governor Kemp sign SB 410? He vetoed a similar tax break suspension two years ago. His position is the session's final uncertainty.
Other states are watching. Virginia, Texas, Ohio — every state in the data center corridor is tracking Georgia's outcome. The SB 34 failure sets a precedent for what industry lobbying can kill.

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