Despite the growing necessity of data centers as the demand for their services increases, there is debate over their associated costs and benefits. This is especially the case with how many taxpayer-funded incentives state and local governments should offer to attract their construction.
Data centers are structures dedicated to the constant storing and processing of information by computer systems. They are an essential aspect of modern technological infrastructure, supporting a vast spectrum of functions and services from personal activities such as texting and streaming to supporting healthcare infrastructure and storing sensitive national security files. They are the backbone of the digital world.
Last month, the Foundation highlighted some of the impacts and tradeoffs associated with the rise of the data center industry in Georgia. The Peach State has become a hub for data centers as states around the country compete with one another to attract tech companies to come and build.
Since the passage of House Bill 696 in 2018, Georgia has exempted a portion of construction materials and other equipment related to data centers from state and local sales and use taxes. To qualify for the exemption, data center projects must meet specific investment and job creation thresholds, which vary based on the population of the county where the data center is located.
While the data center industry has grown rapidly since the tax credit was introduced, there is debate over how influential the credit has been over that growth. This week’s commentary looked at the short and long term implications of data center growth in Georgia and the associated tax incentives. We also have the latest news and analysis from the last week, including:
- Georgia tax refunds on their way
- Atlanta pushes back against data centers
- Waymo rapidly expanding as it enters Atlanta
- Costco sees record fuel sales after extending gas station hours
Have a great weekend,
– Kyle Wingfield
Friday’s Freshest
Wall Street remains easy target, but tackling housing affordability begins in Georgia
Out-of-state companies, typically classified as “institutional investors,” have drawn the ire of policymakers and the public primarily by purchasing existing single-family homes and then renting them out. Some of these companies also build homes and develop entire subdivisions with the sole intention of renting, another contentious concept known as Build-to-Rent, or BTR. But to truly look at the issue of housing affordability, we must look inward at the policies that have stifled housing.
The college selection process highlights what’s missing in K-12
The range of college choices might bewilder some people trying to sort through them – don’t worry, there’s an app for that – but hardly any of it should come as a surprise. The very first part of a student’s college experience is spending time sorting through the options to find the perfect fit. But the oddest part is that most Georgians don’t get to have these conversations about their child’s education – their K-12 education, that is. They are simply assigned to a school according to their home address, and that’s that. It is illogical to have hardly any say in the matter from kindergarten through high school, when upon graduation students have virtually unlimited choices.
‘Obscene Increase’: Savannah schools’ spending priorities seem lopsided
The Savannah-Chatham County Public School System is Georgia’s 10th largest, and over time its yearly budgets have increased … and so have the number of school administrators. As for the number of teachers and students, well, those numbers have actually decreased. Are you confused?
With Kemp out, Georgia’s 2026 election could be wildest yet
With Brian Kemp opting not to run for the U.S. Senate, Georgia Republicans face a wide-open and unpredictable primary season for both governor and senator in 2026, triggering a flurry of political maneuvering. As prominent Republicans have begun to step forward, many others are expected to follow, creating a domino effect of down-ballot races and reshuffling. Past election years with open gubernatorial seats have brought historic turnover — and 2026 could surpass them all in political upheaval.
Despite bureaucracy and NIMBYs, Georgia’s infrastructure wins one
Between red tape piled to the sky and NIMBYs hunting down every proposal to build anything, anywhere, you’d be forgiven for thinking we simply can’t build things anymore. So, it’s worth noting successes when they happen — and Georgia has a very substantial success to celebrate.
The Latest
Economy
Georgia special tax refunds on their way, Kemp says
The wait will soon be over for Georgians who qualify for the special tax refunds approved by the General Assembly this year. Gov. Brian Kemp said Monday the Department of Revenue will begin issuing the refunds this week from the $1 billion tax cut. The tax refunds are capped at $250 for single filers and married individuals filing separately, $375 for head of household filers, and $500 for married individuals filing jointly.
Expect an AI shock to change the job market, not destroy it
There’s a lesson when thinking about the emerging Age of AI: It’s going to be messy. Jobs will be lost, jobs will be changed, and jobs will be altered. As such, it will be possible to cherry-pick your way to whatever conclusion you want. But good-faith analysis will take a broader view.
Education
Growing ranks of military homeschoolers get Defense Department support
Last week, the Department of Defense ordered a review of the support it offers to military families that homeschool their children. DIY education is very popular among military personnel, who have long chosen homeschooling at roughly double the rate of the general population: 12% by the latest figures.
A template for considering new university accreditors
In recent years, interest has been growing in holding higher education institutions accountable for the outcomes they deliver to students. This isn’t a partisan issue. We’ve seen both parties take steps in this direction.
Barrow County school board upset after county withdraws funding for some school resource officers
Concerns continue to mount over student safety in a district still trying to process the horrific and deadly school shooting that happened nearly nine months ago. There is an upset among the community regarding the funding for Barrow County school resource officers. The county informed the school system in a letter the county will no longer pay for several officers.
Changing of the guard coming to Emory University
A former chief justice of the Georgia Supreme Court will take over as interim president at Emory University to allow the current president to become the school’s chancellor. Leah Ward Sears, who served on the high court for 17 years, has been a member of Emory’s Board of Trustees since 2010. She will assume her new role at the beginning of September, succeeding President Gregory L. Fenves.
University of West Georgia getting new president
The University System of Georgia Board of Regents voted to name Christopher “Mike” Johnson as the sole finalist for president of the University of West Georgia. Johnson, currently serving as chief of staff at the University of Houston, will succeed the Carrollton school’s interim President, Ashwani Monga, whose permanent role is as the university system’s executive vice chancellor and chief academic officer.
Energy
The South is having second thoughts about trading pine trees for solar panels
Hunters, botanists and residents worried about water quality and people citing Scripture lined up to oppose the installation of 2,100 acres of solar panels next to a wildlife preserve near Perry. But it was the plight of the local black bears that doomed the proposal from Silicon Ranch, one of the South’s largest solar operators. Silicon Ranch said it would keep more than half of the roughly 4,700-acre property free of solar panels and leave wildlife corridors between the arrays, which would generate enough electricity for about 50,000 homes.
Trump Energy Department cancels $3.7B in Biden-era green energy grants
The Trump administration has canceled $3.7 billion worth of grants for multiple climate-related infrastructure projects, the majority of which were approved in former President Joe Biden’s lame duck period after the 2024 election. Secretary of Energy Chris Wright said the 24 projects failed to advance the energy needs of the American people, were not economically viable and would not generate a positive return on investment of taxpayer dollars.
Atlanta the latest to hit the brakes on data centers
An ordinance by the Atlanta City Council requiring a special-use permit for data centers is the latest pushback from local governments concerned about their effect. Mayor Andre Dickens still has to sign the ordinance before it takes effect. The permit requires applicants to provide plans for water use and energy, which are two concerns of data center opponents.
Transportation
Open houses set for Interstate 16 widening project
The Georgia Department of Transportation is seeking public input ahead of two planned open houses this month on a plan to widen Interstate 16 west of Savannah. The project would widen the heavily traveled highway from two lanes to three in both directions from the I-16/I-95 interchange west to Georgia 67 in Bulloch County, a distance of 32 miles. Twenty bridges in 10 locations along the route would be widened or replaced.
It’s Waymo’s world. We’re all just riding in it.
Unless you live in one of the few cities where you can hail a ride from Waymo, which is owned by Google’s parent company, Alphabet, it’s almost impossible to appreciate just how quickly their streets have been invaded by autonomous vehicles. Waymo was doing 10,000 paid rides a week in August 2023. By May 2024, that number of trips in cars without a driver was up to 50,000. In August, it hit 100,000. Now it’s already more than 250,000. Waymo will be coming to Atlanta this summer.
Bonus
Grace-Marie Turner was such a powerful and constant force in the free-market health care movement, it’s hard to imagine it without her. She was at the 1974 hotel-bar meeting where Arthur Laffer explained “the Laffer curve” to White House Deputy Chief of Staff Dick Cheney. She was the founder of multiple think tanks, and served on the boards of many others. She was a longtime friend of the Foundation dating back to our earliest years, and she will be missed.
Costco sees record fuel sales after extending gas station hours
Costco extended gas station hours and opened new gas stations earlier this year. The result became a boon for the warehouse retailer. CEO Ron Vachris said during Costco’s third-quarter earnings call last week that the company saw “two of our all-time highest gallon weeks” in the U.S. in April.
Spencer Strider’s shaky return is fueling a brutal Braves reality
The 2025 season is officially spiraling out of control for the Atlanta Braves. Their latest loss to the Arizona Diamondbacks pushed Atlanta’s record to 27-33, and made the Braves losers in nine of their last 12 ballgames. The poor play has sparked coaching changes and made Alex Anthopoulos come out of the shadows for damage control media sessions.
Quotes of Note
“What you do makes a difference, and you have to decide what kind of difference you want to make.” – Jane Goodall
“Hardships often prepare ordinary people for an extraordinary destiny.” – C.S. Lewis
“When you want to help people, you tell them the truth. When you want to help yourself, you tell them what they want to hear.” – Thomas Sowell