No metropolitan area in the United States had more data center space under construction than Atlanta during the first half of 2026, according to new data measuring projected electricity consumption across active projects. The Atlanta market recorded a 1% vacancy rate as of March 2026, meaning that existing facilities are operating at near-total capacity and that most buildings still under construction have already been leased before opening. The construction surge, driven by demand for artificial intelligence and hyperscale computing infrastructure, has placed Georgia at the center of a national expansion that is simultaneously generating billions in investment, reshaping local labor markets, and provoking a wave of community resistance across suburban and exurban counties.
Key Takeaways
- Atlanta had more data center space under construction than any other U.S. market in the first half of 2026, as measured by projected electricity consumption, according to CBRE data reported in September 2026.
- The Atlanta data center vacancy rate stood at 1% as of March 2026, with most facilities under construction already leased before completion.
- Georgia has approximately 160 major data centers and at least 11 more in active development, with roughly 4,200 megawatts of capacity under development across metro Atlanta.
- Georgia is projected to lose $2.5 billion in sales tax revenue to data center tax exemptions in fiscal year 2026, a 664% increase from the state’s prior estimate of $327 million.
- At least six Georgia counties and several cities have enacted data center moratoriums in 2026, with Cherokee County extending its pause through February 2027 after unanimous public opposition at a hearing.
- Metro Atlanta has added construction jobs at roughly twice the national rate over the past two years, with data center projects a significant driver of that growth.
A 1% Vacancy Rate Signals a Market Operating at Capacity
The 1% vacancy figure reported by commercial real estate services firm CBRE tells the story of a market where supply has not come close to matching demand. Facilities are filling up as fast as they can be built, and in many cases, the tenants who will occupy new buildings are signing leases while construction is still underway. The dynamic is not unique to Atlanta, as data center markets across the southern United States are absorbing massive investment, but the concentration of activity in metro Atlanta places the region at the top of the national hierarchy by at least one key measure.
Georgia’s appeal to data center operators rests on several factors. The state’s corporate tax environment has been favorable, with a sales and use tax exemption for qualifying data center equipment that has been in place since 2019 and is set to run through 2031. Land costs and all-in construction pricing in the Atlanta market run approximately 10 to 15 percent below Northern Virginia, the nation’s historically dominant data center hub. Turnkey hyperscale facilities in Georgia cost between $9 million and $13 million per megawatt of IT load, or roughly $1,200 to $1,800 per square foot including electrical and mechanical fit-out.
A $2.5 Billion Tax Exemption Faces Growing Scrutiny
The financial dimension of Georgia’s data center expansion has become a point of serious contention. State fiscal projections show that Georgia is expected to forgo approximately $2.5 billion in sales tax revenue to data center exemptions in fiscal year 2026, a figure that represents a 664% increase from the state’s previous estimate of $327 million. Of that total, roughly $1.1 billion represents revenue losses to local governments through local sales tax exemptions, according to research nonprofit Good Jobs First.
An audit conducted by the University of Georgia’s Carl Vinson Institute of Government added a detail that intensified the debate: approximately 70% of data center construction activity in the state would have occurred even without the tax exemption. During the 2026 legislative session, the Georgia Senate passed SB 410, a bill to repeal the exemption on an accelerated timeline. The measure passed 32 to 21 but died in the Georgia House, leaving the exemption intact through at least 2031. The $2.5 billion subsidy exceeds the $538 million the Technical College System of Georgia received in the same fiscal year for workforce development and continuing adult education.
Community Moratoriums Are Spreading Across Metro Atlanta
While the state legislature preserved the tax exemption, local governments have taken a different approach. At least six Georgia counties, including Cherokee, Clayton, Douglas, Hall, Newton, and Athens-Clarke, along with cities including Marietta, Roswell, and LaGrange, have enacted moratoriums on new data center development during 2026. Cherokee County’s experience illustrates the pattern. Commissioners approved a 30-day moratorium in July and extended it to 180 days in August after a public hearing where 11 residents spoke, every one of them in opposition to data center development. Several asked the board to go further and ban data centers outright. The moratorium runs through mid-February 2027 and covers all permits, land disturbance, rezoning, and conditional use applications related to data centers.
The opposition centers on a set of concerns that repeat across communities. Data centers consume 10 to 50 times as much electricity as a typical commercial building, placing strain on Georgia Power’s transmission grid. New transmission lines take five to seven years to complete, and interconnection queue delays have pushed some projects’ energization timelines past 2028. Water consumption for cooling is another pressure point, particularly in counties that rely on limited groundwater supplies. Noise from backup generators and cooling systems, truck traffic during construction, and the displacement of farmland and residential zones round out the list of grievances that have turned local hearings into standing-room-only events.
Construction Labor Markets Are Tightening Under the Weight of the Boom
The labor impact of the data center expansion is measurable. Metro Atlanta has added construction jobs at roughly twice the national rate over the past two years, with data center projects accounting for a significant share of that growth. A single 100-megawatt campus requires 1,500 to 2,000 skilled workers at peak construction, and the trades in highest demand, electricians and pipefitters, are commanding premium wages. Union journeyman electricians in the Atlanta market are earning $38 to $48 per hour at base rates, and pipefitters handling chilled-water and liquid-cooling systems are at $36 to $46. Contractors with trained electrical and mechanical crews have meaningful pricing power in the current environment.
Equipment procurement has become as significant a bottleneck as labor. Switchgear, transformers, and generators now carry lead times of 60 to 110 weeks, meaning that projects risk sitting near-complete for months while waiting on critical electrical infrastructure that should have been ordered at the earliest possible stage. The supply chain constraint has reshaped how general contractors approach scheduling, with procurement timelines now driving project sequencing rather than following it.
FAQs
Why Is Atlanta Attracting So Many Data Centers?
Atlanta offers a combination of lower construction costs relative to Northern Virginia (approximately 10 to 15 percent less), a sales and use tax exemption for qualifying data center equipment, available land in surrounding counties, and proximity to fiber networks. The state’s corporate tax environment and labor pool have also drawn operators seeking alternatives to capacity-constrained markets on the East Coast.
What Is the Georgia Data Center Tax Exemption?
Georgia’s sales and use tax exemption for data center equipment has been in effect since 2019 and is scheduled to remain in place through 2031. State projections indicate it will cost approximately $2.5 billion in foregone tax revenue in fiscal year 2026. A legislative effort to repeal the exemption passed the Georgia Senate in 2026 but was blocked in the House.
Which Georgia Counties Have Moratoriums on Data Centers?
As of September 2026, at least six Georgia counties have enacted moratoriums, including Cherokee, Clayton, Douglas, Hall, Newton, and Athens-Clarke. Several cities, including Marietta, Roswell, and LaGrange, have also paused data center applications. Cherokee County’s moratorium runs through mid-February 2027.
How Many Jobs Do Data Centers Create During Construction?
A single 100-megawatt data center campus requires 1,500 to 2,000 skilled trade workers at peak construction. Metro Atlanta has added construction jobs at roughly twice the national rate over the past two years. However, once operational, data centers employ relatively few permanent staff compared to the scale of the facilities.
