ATLANTA — The Georgia legislative session is already off to a fast start and lawmakers from both main political parties are looking at data centers for new policies and regulations.
Two bills introduced at the Georgia Legislative Session could end tax exemptions for data centers early, or remove them entirely.
The two pieces of legislation, Senate Bill 408 and Senate Bill 410, take different approaches for changing the policies surrounding data center development in Georgia.
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SB 408 would end the current tax exemptions early, bringing the credits to an end at the start of 2027.
On top of the proposal to end the tax exemptions early or immediately, a separate bill was reintroduced in the Senate to protect Georgia residents from seeing costs go up because of data centers.
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The bill was meant to prevent Georgia residential power customers from being subject to rate hikes for data center power needs.
Separately, SB 410 was introduced alongside SB 408 to outright end tax exemptions for data centers.
If passed, it would take effect immediately upon approval by the Gov. Brian Kemp.
After the effective date of this Act, no new certificates of exemption from sales and use tax to a high-technology data center or a high-technology data center customer shall be issued pursuant to the former provisions of this paragraph as they existed prior to the effective date of this Act; provided, however, that any certificate of exemption issued prior to the effective date of this Act shall continue to be governed by the provisions of this paragraph as it existed immediately prior to the effective date of this Act.
— Senate Bill 410, Georgia Legislative Session 2026
The proposals were both submitted to the state Senate with Republican support.
For the full removal of data center tax exemptions, all 16 sponsors are from the Georgia Republican Party and includes multiple members of party leaders in the upper chamber.
The sunsetting proposal is bipartisan, with four Democrats sponsoring the bill, alongside six Republicans.
The proposals come as lawmakers from both parties continue a legislative session described as focused on affordability, providing resources to Georgians in need and keeping costs down.
Another lawmaker from the Democratic Party who is also running for governor, state Rep. Ruwa Romman, proposed a statewide one-year pause on new data center construction.
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