The Georgia House of Representatives has passed a bill that would call a temporary halt to a sales tax exemption the state has been using since 2018 to attract huge high-tech data centers.
House Bill 1192, which passed 96-71, would suspend the exemptions for two years while a newly formed commission studies the impact data centers are having on Georgia’s power grid. The drain data centers are putting on the state’s electric supply was documented last month when executives from Georgia Power testified before the state Public Service Commission that 80% of the additional demand for electricity driving the utility to ask for a huge increase in generating capacity is due to data centers.
Opponents, including some lawmakers with data centers in their districts, argued that suspending a tax credit the General Assembly approved just six years ago and extended in 2022 to attract a fast-growing industry to Georgia would send the wrong message.