CommonFutureatl

CommonFutureatl

Georgia’s new data center rule increases local control

By David Pendered

Dec. 1 – Georgia’s new tool to control the growth of data centers puts Georgia in the mix as states and the federal government stake claims on controlling the development of data centers.

Georgia and Indiana lead the nation in “reshaping the approval process” of data centers. Local opposition resulted in an estimated $98 billion in proposed data centers being delayed or blocked in the second quarter of 2025, nationwide, according to a report by Data Center Watch, which is funded by 10a Labs, a company that conducts research on behalf of artificial intelligence and tech companies.

AI-generated image of financial data. (Credit: DKosig at istockphoto.com)

Meantime, President Trump has deemed AI data centers and infrastructure “essential to national security, economic prosperity, and scientific leadership,” according to a July 23 executive order. The order identified a policy to ease federal regulations that could slow development of such facilities.

The situation could pit a national AI agenda against state and local interests in the development of data centers. Centers consume large amounts of power and water. The National Conference of State Legislatures sent a letter to Congress in June expressing concerns about the centers’ impact on water resources and rising power costs being passed to ratepayers.

Georgia’s new rule responds to local officials who had asked the state for help in evaluating proposed data centers. An additional rule was created for solar power generation facilities. Locals had sought relief from the Georgia Department of Community Affairs in the face of “a rise in developments that have large and potentially adverse effects” that governments don’t have the authority to review on a comprehensive scale, according to a DCA memo.

The DCA on Nov. 20 expanded the Development of Regional Impact requirements to encompass data centers and major solar facilities. DRIs enable a Regional Commission to review proposed developments that would affect more than one county, and issue comments and recommendations to the local government, which retains full authority to approve or deny the development.

For details on the new rules, see the links for amending the DRI rules on DCA’s webpage at: https://dca.georgia.gov/news?page=1