The state of Georgia is shaping up to be ground zero in the fight to tame the growth of data centers across the United States. Lawmakers in several states are exploring passing laws that will implement statewide bans against the tremendous growth of data centers. The main issue of this is resources as the power-hungry facilities have become a focus in economic and environmental concerns. In Georgia a state lawmaker has introduced a bill proposing a curb on new data center developments.

Conversely, this could become the first statewide moratorium on new datacenters in America. Furthermore, the bill is one of at least three statewide moratoriums on datacenters introduced in state legislatures. Other states include Maryland and Oklahoma as lawmakers in these regions also contemplate similar measures. The bill in Georgia seeks to halt all such projects until March of next year.

The reason is to allow officials in state, county and municipal-level time to set necessary policies for regulating datacenters. “…which permanently alter the landscape of our state”, said bill sponsor state Democratic legislator Ruwa Romman. The move could be detrimental in exacerbating the delays and cancellations of data centers across the U.S.

Outlook on Georgia as Ground Zero to Tame Growth of Data Centers

The state of Georgia is shaping up to be the first state to tame the growth of data centers as the bill comes at a vital time. Georgia’s public service commission last month approved a plan to provide 10 additional gigawatts of energy in the coming years. The commission is the agency that oversees utility company Georgia Power. It was the largest amount of electricity sought for a multi-year plan in the commission’s history.

Moreover, it was driven by data centers and will mostly be supplied by fossil fuels. In turn, the 10-gigawatt plan comes as the Atlanta metro area led the nation in data center construction in 2024. This accelerated growth has already led at least 10 Georgia municipalities to pass their own moratoriums on datacenter construction.

Furthermore, the Atlanta suburb Roswell becomes the most recent as it passed one earlier this month. Municipalities in at least 14 states have done the same according to reports by Tech Policy Press.

Concerns on the Data Center Growth

Despite Georgia leading the charge as ground zero to tame the growth of data centers, all states share similar concerns. The rampant development of datacenters to power AI raises several concerns for residents and activists alike. For instance, their impact on the cost of electricity. “In the public’s mind, datacenters and utility bills are inextricably linked,” said Charles Hua, founder and executive director of PowerLines.

The firm is an organization that works on lowering utility bills and involving communities in decisions about energy. Hua noted that the relationship between the two varies, depending on each state’s market and regulatory system. Another data center concerns in Georgia also include water use and lost tax revenue. Republicans in the state legislature have introduced bills this year to protect consumers from increases in their utility bills. The bills also aim to end tax breaks for the centers. A Democrat has proposed that datacenters make public how much energy and water they use each year.

Project Factsheet

Policy Action

• Georgia lawmakers proposed a statewide moratorium on new data centers

• Would be the first such ban in the U.S.

• Pause runs until March next year to set regulations

Primary Drivers

• Massive power demand from data centers

• Environmental strain (energy and water use)

• Rising electricity costs for residents

Energy Pressure

• Georgia approved 10 GW of new power supply

• Largest energy expansion request in state history

• Growth driven mainly by data centers

• Power largely sourced from fossil fuels

Growth Concentration

• Atlanta metro led U.S. data center construction in 2024

• At least 10 Georgia cities have local moratoriums

• Roswell is the latest municipality to halt projects

National Spillover

• Similar statewide moratoriums proposed in Maryland and Oklahoma

• 14+ states now have local-level data center bans

Political Response

• Republicans: limit utility bill increases, remove tax breaks

• Democrats: require public reporting of data center energy and water use

Bottom Line

• Georgia sits at the center of the U.S. backlash against unchecked data center expansion

• Decisions here may set precedent nationwide