Georgia lawmakers move to wind down perks for data centers but otherwise leave oversight unchanged

In a year when Georgians were clamoring for state officials to rein in the unchecked growth of data centers, the Georgia Senate chose to pass a measure that critics say largely maintains the status quo.

Senate Bill 410, sponsored by Newnan Republican Sen. Matt Brass, passed Friday with a 32-21 vote. The bill would phase out tax breaks for new data center developments and computer equipment ahead of the original expiration dates.

“We are all trying to accomplish the exact same thing: to ensure that rate payers will not pick up the tab of data centers. This bill does that. Do not let your hate for Georgia Power cloud your judgment on what this bill actually does,” Brass said during debate on the floor.

Brass’ bill also includes language reflecting a Public Service Commission rule already in place meant to ensure data centers pay for some of the energy infrastructure Georgia Power builds. That same language was attached earlier to another data center bill, Senate Bill 34, against the wishes of Rome Republican Sen. Chuck Hufstetler, the bill’s sponsor.

Hufstetler indicated that, unlike his original proposal, the rule does not necessarily protect consumers from all costs associated with data center growth. His bill was up for a vote last week, but the Senate suddenly adjourned when Hufstetler found enough support for an amendment that would have returned the bill to its original form – a version that the utility company and representatives from the data center industry opposed.

Hufstetler said he would still vote for Brass’ bill, despite saying “the protection is not there.” He said that if data centers fail to use the massive amount of power the Public Service Commission approved last year for Georgia Power to add to the grid over the next few years, there is nothing in the code that protects ratepayers from paying for the infrastructure Georgia Power built in anticipation of a data center boom.

“I don’t know why we don’t make this stronger and codified into law. I’m going to vote for the bill. It is a start, but it certainly does not give us the protection we need for our citizens of Georgia,” Hufstetler said Friday.

He also said that people from across the political spectrum want consumer protections from data center costs and that trusting Georgia Power’s contracts with the power-hungry facilities, which are shielded with redactions from the public, is not enough.

“There is no protection for the consumers in that situation, and that’s certainly disappointing,” Hufstetler said.

Georgia PIRG, a consumer advocacy organization, said in a statement the bill’s vague language does not protect consumers and urged the lawmakers to protect “Georgians, not Georgia Power.”

“The Senate did not protect Georgia bill payers today,” Aidyn Levin with Georgia PIRG. “Residential and small business customers could still be on the hook for billions of dollars in data center energy costs.”

Democrats also pushed back, saying that some Republicans are more concerned about shielding corporate interests over consumer protections. Senate Minority Leader Harold Jones said to reporters after the bill’s passage that the measure does not change anything for Georgians since it largely codifies regulations the Public Service Commission already has in place.

“It’s really, basically, stagnant is what it is. It doesn’t do anything different,” Jones said. “Basically, it says ‘data centers, we’ll trust you.’”

Democrats had drafted a couple of amendments in an attempt to add the language from Hufstetler’s data center bill and another measure that would establish a council to represent residential ratepayers in ratemaking cases. But senators used a procedural move to prevent the bill from being amended.

Atlanta Democratic state Sen. Elena Parent in a fiery speech said that Georgia Power uses a complicated issue to confuse people, and that when they promised their customers a rate freeze, they were disingenuous by not explaining that their bills may still increase after the PSC hears a fuel case this year. The Public Service Commission will also hear a case on Hurricane Helene storm damages, which can also be passed down to the customer.

“A lot of talking, a lot of dinners, a lot of spending and a lot of people who don’t really understand the issue and are loath to go against one of the biggest industries in the state, and the biggest lobbying presence is in the building,” Parent said during the debate on the bill. 

“The public needs to understand what is going on here, and what is going on is that the majority is too terrified to tell Georgia Power, ‘No,’” she added.