With concerns raised in some quarters about the potential power draws used by data center operations, the Georgia senate has passed a bill that withholds tax exemptions for them for the next two years. House Bill 1192 passed with a 29-22 approval, with 29 being the minimum number of votes needed to pass the measure, notes Data Center Dynamics.
In addition to suspending the issuance of any new sales and use tax certificates of exemption for data center projects from July 1, 2024 until June 30, 2026, a Special Commission on Data Center Energy Planning was also created. The commission will have until the June 2026 date to compile a report that studies the existing grid and energy supply. After analyzing the data gathered, the commission will then make recommendations around expanding grid capacity and transmission infrastructure, and its impact on siting Georgia’s data centers.
“When you go out and recruit somebody to come to this state and promise them incentives … this bill seeks to pull out the rug from underneath these folks,” stated Sen. Derek Mallow, (D-Savannah). “That’s not the way to do business.” Mallow and his fellow Democrats generally sided against enacting the suspension of the tax breaks.
“To say the rug would be pulled out of any business is a misrepresentation,” countered Sen. John Albers, (R-Roswell). Republicans who supported HB 1192 noted that the current exemptions would continue to apply to already qualified facilities, according to Data Center Dynamics.
Reader Interactions