While artificial intelligence is often an invisible force, its impact is being felt in a big way across Georgia, where a surge in data center construction is significantly contributing to the state's growth in the construction sector.

Georgia is rapidly emerging as one of the leading U.S. markets for data center development, with Atlanta leading the charge. In 2024, Atlanta was recognized as the number one city in the U.S. for the construction of new data centers. By mid-2024, data center construction in the Atlanta market had surged by 76% compared to the same period in 2023.

The state is home to nearly 160 major data centers, which power the operations of some of the world’s most influential tech companies. And the expansion continues, with 11 new data centers set to be developed, which will add significant strain to the state's power grid. These facilities consume between 10 and 50 times more electricity than typical commercial buildings, raising concerns about the need for additional power resources.

To meet these demands, Georgia Power is investing in key upgrades to its generation and transmission infrastructure. The company has submitted a comprehensive plan to the public service commission that forecasts the development of up to 90 large industrial projects in the state by the end of the decade. Key investments include refurbishments of existing nuclear power plants at Vogtle and Hatch, as well as upgrades to hydroelectric generating stations and the modernization of plants like McIntosh near Savannah. The company is also focusing on replacement and refurbishment projects at nine existing hydro plants.

The Heart of Georgia’s Data Center Boom

The area surrounding Atlanta has become the focal point for most of the data center activity. Sailfish Investors, a prominent real estate investment firm, is working on a 1.78-million-square-foot data center near Social Circle, located southeast of Atlanta. This major project is expected to be finished by January 2027. In addition to this, the firm is in the early stages of developing 13 data center campuses across the U.S. in cities such as Dallas, Austin, Charlotte, and of course, Atlanta.

Meanwhile, Atlas Development has submitted plans for a $17-billion, 13-building data center campus in Union City, southwest of Atlanta. Dubbed "Project Sail," the campus is set to occupy 832 acres near Newnan, located about 45 miles south of Atlanta in Coweta County. The company is seeking rezoning approval for the land to begin construction.

In Union City, Burr Computer Environments has proposed a 2.1-million-square-foot data center campus, which will be built to the east of Stonewall Tell Road and north of South Fulton Parkway. The project is slated to break ground in 2026.

Further south of Atlanta, RSC Investment Management is preparing to develop a 1.9-million-square-foot data center campus along the same Stonewall Tell Road. This facility is also set to be positioned south of South Fulton Parkway.

Georgia's Expanding Data Center Network

The state of Georgia is also seeing growing interest outside Atlanta, with several other proposed data center projects in different parts of the state. For example, the Rome area has seen plans for at least three data centers. One of these, known as Project Sassy, is set to occupy 15 acres along Highway 53, across from a Lowe’s distribution center. Developers secured an option for the land from the Rome-Floyd County Development Authority in December.

Another proposed facility is expected to be built on a 114-acre plot next to Coosa High School in Floyd County. The specifics of the project remain undisclosed at this time.

Microsoft is also making significant strides in Georgia with its “Project Firecracker,” a $1 billion venture. The company plans to build a new data center campus on a 347-acre site off Huffaker Road, east of Fouche Gap Road, in the Rome area. Microsoft aims for the center to go live by 2028.

Amazon Web Services (AWS) is investing around $11 billion into two major data center facilities in Georgia. One will be in Butts County, southeast of Atlanta, and the other in Douglas County, west of Atlanta. These projects are expected to generate around 550 jobs.

Stream Data Centers is also planning a 1.3-million-square-foot data center in Douglas County along Jason Industrial Parkway and North Baggett Road. This complex will include nine data center buildings and two substations, although the exact timeline for completion is not yet available.

Further northeast of Atlanta, Northern Data Group is preparing the design for a data center in Maysville, located on a 63-acre site. The facility is expected to begin operations by the first quarter of 2027.

Lastly, QTS is constructing a massive data center campus called Project Excalibur in Fayetteville, south of Atlanta. The site spans 615 acres and is projected to include up to 16 buildings, making it a substantial investment of over $1 billion.

Georgia’s Competitive Edge in Data Center Development

Georgia has become a favored location for data centers, thanks to a combination of factors including its competitive business environment, high-quality telecommunications infrastructure, and access to a large, skilled workforce. The state boasts two of the largest fiber optic routes in the country, intersecting in metro Atlanta, alongside key research lines.

Additionally, Georgia’s location along the southeastern coast of the U.S. makes it less susceptible to natural disasters like hurricanes or earthquakes. This geographic advantage enhances business continuity for companies choosing Georgia as their data center hub, allowing them to mitigate risks associated with natural disruptions that could impact productivity.

With this combination of factors—affordable operational costs, reliable power supply, and a central location—Georgia is poised to continue its role as a national leader in data center development.

Originally reported by Grant Cameron in Daily Commercial News by Construct Connect.