ATLANTA — The rapid expansion of AI data centers has made energy policy a central issue in Georgia's gubernatorial election. The state has attracted more than $12 billion in data center investments over the past five years, transforming its economic landscape and putting pressure on existing power infrastructure. This growth prompts questions about sustainability and the cost burden on residents.
The money behind this growth is shaping the political landscape. Campaign finance disclosures reveal tech companies and major energy utilities contributed more than $3.5 million to gubernatorial candidates in the past year. Lobbyists for firms like Microsoft and Google engaged state lawmakers on data center incentives at least 40 times in recent legislative sessions, advocating for continued tax breaks and streamlined permitting.
Gov. Brian Kemp has actively promoted Georgia as a data center hub, backing sales tax exemptions on equipment for these facilities. These exemptions saved data center operators an estimated $250 million last year, according to state fiscal reports, making Georgia an attractive location for tech investment. Critics argue these tax breaks, combined with escalating energy demands, directly contribute to rising utility costs for residents. Georgia Power customers saw rates climb 4.5 percent in 2025.
Challenger Stacey Abrams has seized on the issue, highlighting the strain on natural resources and the limited creation of high-wage jobs for local communities. She proposes a re-evaluation of tax incentives and stricter environmental oversight for new facilities, arguing the current policies benefit large corporations. Kemp's campaign emphasizes economic development, job creation and maintaining Georgia's competitive edge in the national tech sector, framing the data centers as crucial for future prosperity.
The November election will determine Georgia's regulatory approach to its growing tech sector. The outcome impacts not only future investment decisions for companies eyeing the state's cheap land and power, but also the long-term energy costs and environmental health for millions of Georgians. This race is a direct contest over who benefits most from the AI boom: the tech industry or the state's citizens.
