Expected impact of Georgia’s 2026 elections on data center regulation

Executive summary

Georgia is already moving toward tighter oversight of data centers, particularly with respect to electricity costs, tax incentives, permitting, water use and local impacts
subject to official certification, Democrat Keisha Lance Bottoms has won the November 3, 2026, gubernatorial election by a nearly 10-point margin and will become Georgia’s next governor. Her reported commitment to impose a data center moratorium by executive order warrants immediate attention, although the extent of that commitment is not yet known. A broad statewide construction or permitting moratorium imposed solely by executive order would face meaningful authority and implementation questions
subject to certification, Democrats Peter Hubbard and Shelia Edwards have won their November 3, 2026, elections for seats on the Georgia Public Service Commission, giving their party a 3-2 majority on the Commission. Edwards has backed Bottoms’ proposal for a data center moratorium and campaigned on a platform that data centers “pay their way”
in the Georgia General Assembly, Republicans are projected to win a two-seat majority in the State Senate, while Democrats are projected to control the State House by a slim majority as of Tuesday, November 10, 2026
the clearest near-term risks are legislative or regulatory: limits on new tax-exemption certificates, mandatory large-load contract protections, stronger project-readiness requirements, shifting of costs for new power to data centers from other users, greater scrutiny of environmental concerns (including a push for renewable power) and possible temporary permitting restrictions pursued through executive or legislative action

1. Existing Georgia trajectory

Issue	Current Georgia position	Likely post-election significance
Electricity cost allocation	The Georgia PSC approved special terms for new customers with electric demand exceeding 100 MW, including longer contracts, minimum-billing requirements, upstream cost recovery and PSC review of qualifying contracts. In the last General Assembly, the Republican-sponsored HB 1063, which would’ve codified some of these special terms into law, failed to pass.	Very high. Ratepayer protection is the most mature policy track and can advance through PSC proceedings as well as legislation. Commissioner Hubbard stated his desire to “raise the barrier for data centers to do business in the state […] and make them pay their fair share.” Commissioner-elect Edwards campaigned on requiring data centers to “pay the full cost of the infrastructure needed to serve them.”
Tax incentives	Georgia provides a sales-and-use-tax exemption for qualifying high-technology data center equipment. Bipartisan proposals such as SB 408 in the last General Assembly sought to end or advance the sunset date of such tax exemptions.	Very high. New or unvested projects face greater exposure than projects with issued certificates or strong grandfathering claims. A previous attempt to pause these tax breaks passed the legislature but was vetoed by outgoing Republican Governor Brian Kemp; Bottoms has already declared her intention to review these tax exemptions.
Moratorium / impact review	Democratic-sponsored measures from the last General Assembly, HB 1012 and HB 1059, proposed temporary moratoriums on data center development. HB 1059 also proposed a Data Center Impact Assessment Commission.	High. A broad moratorium remains politically and legally more difficult than a study, agency review, regional pause or permit-specific restriction, but is supported by Bottoms and several of her Democratic colleagues.
Project readiness	Georgia Power and the PSC are under pressure to distinguish committed projects from speculative load requests.	High. Expect deposits, collateral, milestones, minimum demand charges, queue controls and termination protections. Hubbard has expressed skepticism of whether data center projects will get completed and plans to ensure “data center accountability.”
Energy sourcing	Data centers are not currently required to source their energy from any specific type of generation.	High. Commissioner Hubbard plans to require data centers be “powered with clean energy sources and pay for that infrastructure.” Bottoms expressed her “complete alignment” with Hubbard’s proposal. Hubbard also stated he intends to help “fulfill Southern Company’s goal of net zero emissions by 2050.”

2. What the election may change

Governor’s agenda and veto power. As presumed governor-elect, Bottoms can make an agency review an early-administration priority, limit permitting, propose a legislative moratorium, support tax-incentive changes and sign or veto legislation after taking office
General Assembly leadership and committee composition. Because the most comprehensive moratorium proposals were legislative, chamber control and the leadership of committees handling technology, utilities, taxation, natural resources and local government are central
Public Service Commission policy. The PSC can continue developing large-load tariffs, contract safeguards, generation approvals, reporting duties, queue requirements and cost-allocation rules even without a statutory moratorium

Most likely policy direction: Georgia is more likely to adopt a “build, but pay your own way” framework than a permanent statewide ban. That framework would preserve economic-development opportunities while shifting grid, transmission and stranded-asset risk to large-load customers. A temporary pause or targeted moratorium is a more immediate possibility, particularly if the new administration can align with the General Assembly around resource or ratepayer concerns. Expect a focus on clean energy to underpin this approach.

3. Implications for data-center developers, operators and counterparties

privilege existing rights. Confirm the status of exemption certificates, zoning approvals, building permits, utility service agreements, interconnection studies, water commitments and vested-rights arguments
expect additional financial security. Model the effect of minimum-billing obligations, 15-year or longer service terms, collateral, termination payments and direct responsibility for generation, transmission, and distribution upgrades
separate announced capacity from executable capacity. Project schedules should account for queue reform, readiness deposits, phased energization and the possibility that speculative reservations receive lower priority
prepare an impact record. Assemble defensible data on water consumption, backup generation, noise, emissions, land use, jobs, tax revenue and community benefits before local hearings or state review
monitor the 2027 session immediately. Priority items include reintroduction or replacement of moratorium legislation, tax-exemption legislation, utility-cost-allocation bills and any executive order issued by the incoming governor

4. Assessment

The 2026 election increases the importance of Georgia’s data-center policy debate, but the direction of regulation does not depend on a single campaign promise. Georgia already has an active regulatory and legislative record focused on protecting other customers from large-load costs and reassessing tax incentives. When Bottoms takes office, should she pursue the reported moratorium, the most durable route would be legislation that defines the covered facilities, approvals, duration, grandfathering, exceptions and responsible agencies. An executive order could still matter by initiating reviews or pausing actions within executive control, but its legality and practical reach would depend on the precise text and statutory basis.

The principal near-term risks are: (1) delayed or conditioned approvals, (2) loss or narrowing of incentives for new projects, (3) higher up-front utility and infrastructure obligations and (4) expanded state and local impact-review requirements. Existing projects with completed approvals and issued certificates may be better positioned, but grandfathering language and vested-rights issues will require project-specific analysis.

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If you have any questions about this legal briefing, please feel free to contact any of the attorneys listed or the Eversheds Sutherland attorney with whom you regularly work.

_Sources

_{1. Georgia Secretary of State, November 3, 2026, General Election Results

2. Georgia General Assembly, HB 1012 (2026)

3. Georgia General Assembly, HB 1059 (2026)

4. Georgia General Assembly, SB 408 (2026)

5. Georgia Public Service Commission, Data Center Power Usage Terms (Jan. 23, 2025)

6. Georgia Public Service Commission, Data Center Fact Sheet

7. Georgia Department of Revenue, High-Technology Data Center Equipment Exemption

8. Georgia Data Center Sales & Use Tax Exemption Evaluation (Dec. 2025)

9. Georgia General Assembly, HB 1063 committee substitute}

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