Georgia leads first statewide push to halt AI data centers over energy and water concerns

Georgia Proposes Nation's First Statewide Data Center Moratorium

Georgia has emerged as the battleground for one of the most contentious issues in AI infrastructure development. Democratic state Rep. Ruwa Romman introduced HB-1012, a bill proposing the first statewide data center moratorium in the United States1

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. The legislation seeks to halt new data center construction until March 2027, giving state, county, and municipal officials time to establish policies for regulating these facilities that "permanently alter the landscape of our state," Romman stated2

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. While Maryland and Oklahoma lawmakers have also introduced similar measures in recent weeks, Georgia is leading the charge against the rapid expansion of AI data centers3

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The moratorium aims to provide officials time to study water usage, energy and water consumption, and the real revenue and economic impacts of data centers instead of relying solely on projections, according to Romman, who is running for governor1

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. That data would then inform future regulation. HB-1012 has attracted bipartisan support, with Republican co-sponsor state Rep. Jordan Ridley signing onto the measure to give local governments time to develop zoning regulations on data centers2

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Environmental and Economic Impacts Drive Legislative Action

The push for a statewide data center moratorium comes amid mounting environmental concerns about these power-hungry facilities. Georgia's Public Service Commission approved a historic plan last month to provide 10 additional gigawatts of energy in the coming years—the largest amount of electricity sought in the commission's history2

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. This capacity, enough to power approximately 8.3 million homes, will be driven primarily by data centers and supplied mostly by fossil fuels4

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. The Atlanta metro area led the nation in new data center construction during 2024, accelerating concerns about resource usage2

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Estimates suggest Georgia currently hosts between 100 to 200 data centers, facilities that require the same amount of energy used to power nearly 3.9 million homes and consume water that could sustain Athens, Georgia for five years3

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. "What we're seeing is, as communities are learning more about this aggressive industry's presence, they want to have time to thoroughly investigate all potential harms," said Seth Gladstone, spokesperson for Food and Water Watch3

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Rising Utility Costs and Tax Revenue Concerns

The AI boom has created direct financial pressure on Georgia residents through rising utility costs. "In the public's mind, data centers and utility bills are inextricably linked," said Charles Hua, founder and executive director of PowerLines2

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. Georgia Power, the state's utility company, profits from new capital investments in the power grid, creating incentives to build new power plants rather than improve efficiency. This approach has driven Georgia's utility rates up by a third in recent years2

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Beyond energy costs, concerns about lost tax revenue have prompted Republicans in the state legislature to introduce bills ending tax breaks for data centers2

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. Other Democrats are promising voters that data center-related costs will be paid by Big Tech, though Romman contends that policymakers first need to understand actual costs before determining how much companies should pay1

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. Additional proposed legislation would require data centers to publicly disclose their annual energy and water consumption2

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Political Implications and Grassroots Opposition

The data center issue has proven remarkably bipartisan in Georgia, mobilizing voters across the political spectrum. "This continues to be the one issue that has shown up everywhere around the state. It doesn't matter if it's a blue area or red area," Romman said1

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. In last year's elections, Georgia flipped two statewide seats on the Public Service Commission for the first time in more than 20 years by more than 25 points, with new data center construction and rising utility rates central to mobilizing voters1

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Opposition to AI data centers didn't originate on the left but in rural areas, according to Romman, starting as "straight up typical nimby-ism coupled with, 'Hey, I don't want to lose that river'"1

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. At least 10 Georgia municipalities have already passed their own moratoriums on data center construction, with Atlanta suburb Roswell becoming the most recent earlier this month2

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. Municipalities in at least 14 states nationwide have implemented similar local restrictions, according to Tech Policy Press2

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Romman echoes Bernie Sanders, who proposed a national moratorium last month, though she noted she was already exploring the idea before hearing about the senator's proposal1

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. The political stakes extend beyond policy, with one of the biggest data centers currently planned in Georgia being built on land owned by the father of Republican Lt. Gov. Burt Jones, who is also running for governor1

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. Romman's moratorium bill also serves as a political strategy, providing time for Georgians to vote on additional Public Service Commission seats that make final decisions on energy-related projects2

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