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GA — State Policy Updated January 2026

Georgia

Statewide incentives and constraints, plus key municipal restrictions and active policy debates.

High-Technology Data Center Equipment Sales & Use Tax Exemption PSC 100 MW Rule for Large-Load Billing County and Municipal Moratoria Utility Regulation

Overview

Georgia aggressively courts data centers with a state-and-local sales tax exemption for qualifying equipment and infrastructure, tied to investment thresholds that scale with county population. However, the state’s Public Service Commission (PSC) approved a new rule in January 2025 requiring Georgia Power to charge large-load customers over 100 MW for upstream grid infrastructure costs — a significant shift aimed at protecting other ratepayers from subsidizing data center expansion. Meanwhile, local governments enacted a wave of moratoria and ordinances in 2025 to address water and energy concerns.

Incentives

High-Technology Data Center Equipment Sales & Use Tax Exemption

Georgia exempts state and local sales and use tax for qualifying data center equipment used by certified data center owners and their customers.[1] The exemption covers computer equipment and supporting infrastructure including generators, cooling systems, energy storage, power distribution, cabling, and related hardware and software.[1]

Minimum thresholds for data centers certified on or after May 9, 2022:

  • Counties with population over 50,000: $250M investment + 25 New Quality Jobs
  • Counties with population 30,001–50,000: $75M investment + 10 New Quality Jobs
  • Counties with population under 30,001: $25M investment + 5 New Quality Jobs

New Quality Jobs must be at least 30 hours per week and pay at least 110% of the county average wage for all industries.[1] Data center customers must have minimum 36-month contracts with the certified owner to claim the exemption.[1]

The exemption is tied to a seven-year investment period selected by the data center owner, and that investment period must end on or before December 31, 2031 under current rules.[1]

Georgia adopted this sales tax exemption in 2018 to attract high-tech data center construction and operations.[2] A 2022 state audit evaluated the program’s estimated fiscal effects and economic activity assumptions.[2]

Requirements and Conditions

Job Quality and Wage Standards

New Quality Jobs must be full-time positions (30+ hours per week) and pay at least 110% of the county’s average wage across all industries to qualify for the sales tax exemption.[1] This ensures that data center employment meets a minimum wage floor tied to local labor market conditions.

Customer Contract Duration

Data center customers must maintain minimum 36-month contracts with the certified owner to claim the sales tax exemption on their equipment.[1] This requirement creates a long-term commitment that aligns customer and owner eligibility periods.

Utility and Grid Rules

PSC 100 MW Rule for Large-Load Customers

In January 2025, the Georgia PSC approved a rule allowing Georgia Power to apply special billing terms to new customers using more than 100 MW.[3] The rule allows the utility to bill large-load customers for upstream generation, transmission, and distribution costs — not just site-specific costs — to protect other ratepayers from subsidizing data center grid infrastructure.[3]

New Georgia Power contracts for customers in the 100 MW category must be submitted to the PSC for review.[3] Contracts can now run for 15 years (up from 5 years) with minimum billing requirements to reduce the risk of early exit before infrastructure costs are recovered.[3]

Local Zoning

County and Municipal Moratoria (2025)

A wave of local ordinances and temporary moratoria swept through Georgia in 2025, with eight counties and cities adopting moratoria since March 2025 to pause new data center development while tailored zoning and building codes are drafted.[4] Local officials cited concerns about water use, energy demand, and the absence of regulations designed specifically for data centers.[4]

What to Watch

  • 2026 legislative proposals in the Georgia General Assembly that may modify or extend the 2031 sunset date for the sales tax exemption.
  • County ordinance adoption in jurisdictions where moratoria expire, particularly DeKalb, Clayton, and Pike counties.
  • PSC review outcomes for new Georgia Power contracts submitted under the 100 MW rule, which could set precedents for cost allocation and contract terms.

Sources

[1] Georgia Department of Revenue, “Rule 560-12-2-.117 High-Technology Data Center Equipment,” effective rule text (accessed January 8, 2026), https://dor.georgia.gov/document/document/rule-560-12-2-117-high-technology-data-center-equipment/download.

[2] Georgia Department of Audits and Accounts, “Tax Incentive Evaluation: High-Tech Data Center Sales Tax Exemption (Summary),” December 2022, https://www.audits2.ga.gov/wp-content/uploads/2023/01/Data-Center-Sales-Tax-Exemption-Summary.pdf (accessed January 8, 2026).

[3] Georgia Public Service Commission, “PSC Approves Rule to Allow New Power Usage Terms for Data Centers,” news release, January 23, 2025, https://psc.ga.gov/site/assets/files/8617/media_advisory_data_centers_rule_1-23-2025.pdf (accessed January 8, 2026).

[4] Sarah Kallis, “A ‘wave’ of data center ordinances sweep through GA counties. How strict are they?,” Georgia Public Broadcasting, October 22, 2025, https://www.gpb.org/news/2025/10/22/wave-of-data-center-ordinances-sweep-through-ga-counties-how-strict-are-they (accessed January 8, 2026).