Atlanta, January 5, 2026
Georgia, particularly the Atlanta metropolitan area, is witnessing a remarkable surge in demand for land driven by the booming data center industry. Companies like Amazon and Microsoft are making significant investments, transforming local landscapes and creating economic opportunities while balancing community concerns and regulatory challenges. The state’s favorable business climate, supported by tax incentives and infrastructure, positions Georgia as a leader in the digital economy. The rapid expansion raises important questions about sustainable growth and resource management that require careful community engagement.
Atlanta
Atlanta’s Data Gold Rush: Unpacking Georgia’s Land Boom
As data center companies invest billions, Georgia’s landscape is transforming, driven by innovation, strategic advantages, and a keen eye on economic expansion.
Georgia, and particularly the Atlanta metropolitan area, is experiencing an unprecedented surge in demand for land, driven by the rapid expansion of the data center industry. This intense interest reflects the state’s growing appeal as a hub for digital infrastructure, a testament to its robust economic environment and the forward-thinking spirit of Georgia entrepreneurs. The willingness of data center companies to make substantial offers for prime sites highlights a dynamic marketplace where private investment is fueling significant economic growth and technological advancement.
This boom underscores the importance of a favorable business climate, where innovation can thrive and industries can expand without undue regulatory burdens. While the scale of these investments might be surprising to some, it represents a clear signal of confidence in Georgia’s future as a leader in the digital economy. It also presents both opportunities and challenges for communities and policymakers, balancing growth with local considerations.
The Unprecedented Land Rush in Georgia
Data center companies are making “eye-popping offers” for sites across Georgia, often outcompeting other developers for land, especially those properties that avoid rezoning fights and community opposition. For instance, Amazon Web Services paid approximately $270 million in July for a 985-acre development site in rural Lamar County. This particular property, previously valued at less than $3.5 million in 2023, is located in an industrial park, which presented fewer hurdles for data center development.
Microsoft has also made significant real estate investments, acquiring over 480 acres across Atlanta’s Southside for data centers, including a payment of at least $171 million in 2024 for land. Another example includes Microsoft’s $6 million acquisition of nearly 21 acres adjacent to its existing Palmetto data center campus in South Fulton County in 2024 to support ongoing construction. Industry experts note that if a site is suitable for a data center, it is becoming increasingly difficult for residential or industrial developers to compete, as data center developers can justify much higher land values.
Atlanta: A Hub for Digital Infrastructure
Atlanta has emerged as a leading data center market, surpassing Northern Virginia in absorption in 2024. The Atlanta market recorded 705.8 megawatts of net absorption in 2024, an almost 39-fold increase from the previous year. This positions Atlanta with the second-largest total data center capacity nationally, trailing only Northern Virginia. Key advantages attracting this investment include ample land, a robust fiber optic network, and reliable energy infrastructure.
The strategic location of Georgia, with two of the country’s largest fiber routes intersecting in metro Atlanta, further enhances its appeal. Furthermore, the ongoing demand for artificial intelligence (AI) technologies is significantly fueling the need for more data center infrastructure and capacity.
Economic Impact and Job Creation
The proliferation of data centers in Georgia has had a substantial economic growth impact. Between July 2020 and June 2021, the data center industry contributed approximately $5.3 billion in total economic output throughout the Georgia economy. This included supporting 22,940 jobs across the state and generating $1.5 billion in associated employee pay and benefits during that period. Specifically, during construction and operations in the same timeframe, there was a direct economic output of about $1.4 billion, including 1,020 construction jobs with $70 million in pay and benefits, and 3,480 full-time-equivalent onsite operations jobs with $276 million in pay and benefits.
Beyond job creation, these developments significantly enhance the value of the land they occupy, thereby increasing local property tax collections. For instance, in metro Atlanta, the land for new data centers was valued at an average of $26 million per complex, with servers and electrical equipment adding $1.8 billion to the property’s worth, leading to an average of nearly $28 million in annual property tax proceeds per project. The high-paying nature of jobs within the data center industry, with wages increasing 64 percent from $78,500 to $128,700, also benefits the Atlanta GA business landscape.
The Role of Incentives and Policy
Georgia has actively sought to attract data center investments through various incentives. Since 2018, the state has provided sales and use tax exemptions on certain construction materials and equipment, such as computers and servers, for larger data centers. These exemptions were initially set to expire but were extended until 2031 by the General Assembly in 2022.
While these incentives are designed to stimulate investment and job creation, they have also sparked debate regarding their fiscal impact. A state analysis for the Georgia Department of Audits and Accounts noted that Georgia effectively forewent $474 million in the fiscal year ending in July by exempting data centers from some taxes. However, proponents argue that the overall economic benefits, including capital investment and increased property taxes, outweigh the forgone sales tax revenue. A 2022 report from the Carl Vinson Institute of Government at the University of Georgia estimated that 90% of data center activity in Georgia was attributable to these tax incentives.
Navigating Growth: Challenges and Community Engagement
Despite the substantial economic advantages, the rapid expansion of the data center industry presents certain challenges. Data centers are notably energy and water-intensive; a single large facility can consume as much electricity as a small city and up to 5 million gallons of water per day. This places considerable pressure on Georgia’s power grid, leading utilities like Georgia Power to plan significant investments in generation and transmission systems.
Communities across the state are increasingly concerned about these impacts, particularly regarding land use and resource consumption. This has led to numerous local governments, including those in Clayton, Lamar, Troup, Pike, and Coweta counties, implementing moratoriums or developing new zoning ordinances to manage data center development. Atlanta City Council also reviewed zoning regulations and, by September 2024, prohibited new data centers within a 22-mile radius of the Beltline overlay district, citing concerns over development growth and water scarcity. These actions underscore a desire for thoughtful, balanced policy that ensures economic growth benefits the entire community while addressing environmental and infrastructure considerations, fostering sustainable development for Atlanta small business and large enterprises alike.
Looking Ahead: Sustaining Atlanta’s Economic Dynamism
The significant investment by data center companies in Georgia is a powerful indicator of the state’s robust economic health and its critical role in the global digital economy. This private sector confidence drives innovation and creates opportunities for a diverse range of businesses, from high-tech operations to local construction firms. As Georgia entrepreneurs continue to find new avenues for success, the dialogue between industry leaders, policymakers, and communities will be vital to ensure that this rapid growth is managed effectively, maintaining a balance that supports continued prosperity and preserves the unique character of our neighborhoods. We encourage all residents to stay engaged in the ongoing discussions shaping Atlanta’s economic future, ensuring that our city remains a beacon of opportunity and responsible development.
Frequently Asked Questions
- What is driving the current land boom in Georgia? The current land boom in Georgia is primarily driven by data center companies making significant offers for sites.
- Why are data center companies attracted to Georgia? Data center companies are attracted to Georgia due to factors such as ample land, robust fiber optic infrastructure, available power, and a supportive business environment. The demand for artificial intelligence (AI) technologies is also fueling this growth.
- How much economic impact have data centers had in Georgia? Between July 2020 and June 2021, the data center industry contributed approximately $5.3 billion in total economic output throughout the Georgia economy.
- How many jobs have data centers created in Georgia? Between July 2020 and June 2021, the data center industry supported 22,940 jobs across the Georgia economy.
- What tax incentives does Georgia offer to data centers? Since 2018, Georgia has offered sales and use tax exemptions on certain construction materials and equipment, such as computers and servers, for larger data centers. These exemptions were extended until 2031.
- What are the main challenges associated with data center growth in Georgia? The main challenges include immense power and water consumption, placing pressure on Georgia’s power grid, and community concerns regarding land use and resource consumption.
- Have any local governments in Georgia placed restrictions on data center development? Yes, several local governments in Georgia, including those in Clayton, Lamar, Troup, Pike, and Coweta counties, have implemented moratoriums or new zoning ordinances. Atlanta City Council also prohibited new data centers within a 22-mile radius of the Beltline overlay district by September 2024.
Key Features of Georgia’s Data Center Boom
| Feature | Description | Scope |
|---|---|---|
| Land Acquisition Offers | Data center companies are making “eye-popping offers” for sites, often outbidding other developers. | State-level |
| Market Position | Atlanta became the top data center market for absorption in 2024, surpassing Northern Virginia. | Metro Atlanta |
| Economic Output (July 2020-June 2021) | Approximately $5.3 billion in total economic output. | State-level |
| Jobs Created (July 2020-June 2021) | 22,940 jobs throughout the Georgia economy. | State-level |
| Tax Incentives | Sales and use tax exemptions on construction materials and equipment for larger data centers, extended until 2031. | State-level |
| Power Consumption | A single large data center can consume as much electricity as a small city. | Nationwide |
| Water Consumption | A single large data center can consume up to 5 million gallons of water per day. | Nationwide |
| Local Restrictions | Moratoriums and new zoning ordinances implemented in various counties and within Atlanta’s Beltline overlay district. | Local |
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Author: STAFF HERE ATLANTA WRITER
The ATLANTA STAFF WRITER represents the experienced team at HEREAtlanta.com, your go-to source for actionable local news and information in Atlanta, Fulton County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as vibrant music festivals like Shaky Knees and Music Midtown, major cultural celebrations including Dragon Con and the Atlanta Film Festival, and iconic sporting events like the Peachtree Road Race. Our coverage extends to key organizations like the Metro Atlanta Chamber of Commerce and the Atlanta Convention & Visitors Bureau, plus leading businesses in logistics, beverages, and retail that power the local economy such as Delta Air Lines, The Coca-Cola Company, and The Home Depot. As part of the broader HERE network, including HEREAugusta.com and HERESavannah.com, we provide comprehensive, credible insights into Georgia's dynamic landscape.
