Georgia has issued significant tax breaks for data centers since 2018. The tax breaks enabled the state to become a hotspot for data center development. The Atlanta Business Chronicle reports that, as a result of the tax breaks, Georgia has forgone approximately $2.5 billion in revenue in the current fiscal year. Now, some the Georgia legislature want to rein in some of the tax breaks.

Data centers can generate substantial tax revenue for local communities. However, they tend to create few permanent jobs and can consume large amounts of land, water, and electricity.

Besides the tax break issue, the legislature is hoping to ensure that the costs incurred to provide electricity service to data centers are not passed on to residential and retail customers. It would require contracts between electric utilities and data centers to include terms and conditions designed with that goal in mind.

In December, the PSC approved Georgia Power’s plan to build 10,000 megawatts of power primarily to serve data centers.