Georgia moves to curb AI data centre expansion amid energy concerns
AI-driven data centre expansion has sparked political resistance in Georgia, as lawmakers question energy policy and local economic benefits.
The state of Georgia is emerging as the focal point of a growing backlash against the rapid expansion of data centres powering the US’ AI boom.
Lawmakers in several states are now considering statewide bans, as concerns over energy consumption, water use and local disruption move to the centre of economic and environmental debate.
A bill introduced in Georgia would impose a moratorium on new data centre construction until March next year, giving state and municipal authorities time to establish more explicit regulatory rules.
The proposal arrives after Georgia’s utility regulator approved plans for an additional 10 gigawatts of electricity generation, primarily driven by data centre demand and expected to rely heavily on fossil fuels.
Local resistance has intensified as the Atlanta metropolitan area led the country in data centre construction last year, prompting multiple municipalities to impose their own temporary bans.
Critics argue that rapid development has pushed up electricity bills, strained water supplies and delivered fewer tax benefits than promised. At the same time, utility companies retain incentives to expand generation rather than improve grid efficiency.
The issue has taken on broader political significance as Georgia prepares for key elections that will affect utility oversight.
Supporters of the moratorium frame the pause as a chance for public scrutiny and democratic accountability, while backers of the industry warn that blanket restrictions risk undermining investment, jobs and long-term technological competitiveness.
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