Georgia is taking the lead among U.S. states with a legislative effort to pause the development of new data centers across its territory. On Monday, lawmakers introduced a bill that calls for a halt on authorizing any new data center projects until March 2025. This move reflects escalating concerns over the growing footprint of these facilities, which demand substantial power and water resources, especially as they underpin the expanding artificial intelligence (AI) sector.
The push for this temporary freeze is championed by Democratic state legislator Ruwa Romman, who highlights the need to carefully assess the broader environmental and economic implications of data center growth before allowing further expansion. Although similar legislative proposals to address these challenges have recently emerged in other states including Maryland and Oklahoma, Georgia stands out as the first to formally propose a moratorium at the state level.
This legislative development comes in the aftermath of a significant decision by Georgia’s public service commission last month to approve an unprecedented 10-gigawatt energy supply plan tailored primarily to data center energy requirements. This planned capacity expansion equates to enough electricity to supply roughly 8.3 million households. However, the plan remains heavily reliant on fossil fuel sources, which raises questions about the long-term environmental sustainability of supporting the data center industry at this scale.
Beyond energy concerns, stakeholders and local communities voice unease about the impact of data centers on water consumption, as these facilities require large volumes of water for cooling purposes. Although precise figures on the number of operational data centers within Georgia remain uncertain, estimates by organizations such as Science for Georgia and Baxtel suggest that the state hosts between 100 and 200 such facilities.
The opposition in Georgia also stems from the strain data centers place on local municipalities, including increased electricity costs and resource demands that can affect public infrastructure. Additionally, critics emphasize the loss of tax revenue associated with data center operations, fueling calls to reconsider existing tax incentives. As a result, recent legislative initiatives attempt both to eliminate these tax breaks and to require greater transparency from data center operators concerning their energy and water usage metrics.
On a national level, this issue has garnered attention as well, with Senator Bernie Sanders proposing a moratorium on data center construction across the United States last month, signaling broader concerns about the sustainability of rapid data center expansion amid evolving energy and environmental priorities.
As Georgia debates the merits and ramifications of this moratorium, the state confronts a pivotal choice in balancing technological infrastructure growth against environmental stewardship and fiscal responsibility. The outcome of this legislative initiative could set a precedent for other jurisdictions grappling with the complex challenges posed by the AI-driven demand surge for data center capacities.