The fiscal impact explained

As conversations continue across South Georgia about data centers and artificial intelligence, one question continues to surface: What do these facilities actually mean for the local taxpayers?

Recently, the Development Authority of Early County Board of Directors plus myself participated in a state-approved “2-Hour Board Boost Training” session hosted by the Georgia Tech Center for Economic Development Research (CEDR).

A session led by Alan Durham of the Georgia Tech CEDR offered valuable insight and examined the fiscal impact of modern data centers on local economies. The findings shed light on the important distinction between economic impact and fiscal impact.

Economic impact measures activity such as jobs created, wages earned and money spent throughout the entire community. While the fiscal impact examines something much more important to taxpayers: How much revenue a project generates for local governments compared to the cost of providing public services?

According to the research provided, modern enterprise and hyperscale data centers tend to produce very strong fiscal impacts because they require literally billions of dollars in private investment while placing relatively low demands on the local governments’ services.

Unlike many traditional industries, data centers employ fewer workers but make enormous investments in both buildings and highly-specialized equipment. In many cases, personal property including the servers, networking equipment and computing infrastructure, represents nearly 90 percent of the total investment. That equipment is also replaced regularly as technology advances, creating recurring taxable value for the local governments.

At the same time, data centers generally don’t generate significant increases in the school enrollment, residential growth or demands on public safety and other services. The results can be a substantial net positive for county and municipal budgets.

Of course, fiscal benefits were only part of the conversation that was had during the training session.

Residents understandably have questions about electricity, water consumption, noise and compatibility with surrounding land uses. Fortunately, technology has advanced rapidly over the past decade.

Many modern facilities now utilize closed-loop cooling systems that dramatically reduce freshwater withdrawals. Direct-to-chip cooling technologies continue improving efficiency while using very little water and indirect evaporative systems can reduce water consumption even further compared to older designs.

The noise levels have also improved significantly. While Bitcoin mining operations, like the one located in Cuthbert, are often associated with loud equipment, data centers typically incorporate acoustic barriers, soundproofing, landscaped buffers and operational standards that can greatly reduce off-site noise.

Another concern that was mentioned involves electricity. Alan Durham explained that in Georgia, very large data centers, which are considered large-load users, are required to pay the full cost of the electric infrastructure necessary to serve their facilities. This means that transmission upgrades, substations and power generation investments are designed so those costs are not shifted onto existing residential customers.

And perhaps the most important recommendation provided by the Georgia Tech expert was that communities should not simply say “yes” or “no” to prospective data centers. They should adopt well-researched local ordinances that establish clear expectations regarding site selection, setbacks, landscaping, water use, noise, environmental protections and long-term compatibility with neighboring properties.

The goal of local economic development has never been to encourage unchecked development or to discourage responsible investment. It has always been to establish thoughtful guidelines that protect residents, preserve our rural character, while providing certainty for any company considering investment here. As always, please feel free to contact the Early County Office of Economic Development at (229) 366-1952 or susanne.reynolds@earlycounty.org.

ABOUT ALAN DURHAM

Training Summary: CLICK HERE.

I, along with the Development Authority of Early County, wish you all a safe and Happy 250th Independence Day!

Published in the Early County News July 1, 2026.