Data center construction keeps Ga.’s economy going. Don’t stop the momentum.

Georgia’s economic future depends on the decisions we make today. It is important that our leaders make sound decisions to ensure our economy continues to expand for the long term and not hinder the growth we have consistently realized over the past decades.

We have a great opportunity to retain our competitive advantage by ensuring legislative decisions help maintain our state’s competitive advantages by retaining tax incentives for data center construction.

Don’t curtail data center development

Credit: Handout

Credit: Handout

For members of Associated Builders and Contractors of Georgia — one of the top trade groups for our industry and the voice for merit shop construction, free enterprise and open competition — data centers have become one of the top areas for growth.

The construction industry generates a huge economic return for our state. Our total economic impact on Georgia is at least $80.9 billion, cementing our role as one of Georgia’s most powerful economic engines.

Every new construction project contributes to a sector that employs thousands of people, produces billions of dollars in wages and creates long-term value in Georgia communities. Specifically, our industry supports 549,000 full-time jobs, generates $49.2 billion in salaries and produces $2.7 billion in state tax revenues.

Put simply, construction is building Georgia’s economy. Georgia’s manufacturing, services, trade and transportation sectors also are deeply connected to commercial development activities.

Data centers and artificial intelligence actually make Georgia’s economy more resilient for the long term, and we can’t afford to allow these opportunities to slip away to other states that are eager to reap the economic benefits they provide.

We understand the concerns driving legislation to limit data center construction. And we also want to ensure access to high-quality economic opportunities for Georgia. We, too, care about responsible energy consumption, and we want to ensure costs aren’t passed on to residents.

In fact, this is why we see things differently and why we want to urge our elected leaders to continue to look to the future by continuing to welcome data centers and the AI jobs they create.

Curtailing data center development ignores the ecosystem of economic activity and jobs created outside their walls. Data centers drive demand for things like fiber infrastructure, strengthen Georgia’s position as a technology hub and signal to Fortune 500 companies, technology companies and others that our state has the digital backbone to support their operations now and as they scale.

In addition, many of the construction trades that work on data centers are highly specialized — and we’re fortunate that many are located here in Georgia. So those jobs go directly to Georgia companies and Georgians.

Learn from film industry mistakes

AI and data center jobs now make up 7.5% of the U.S. economy, and these jobs are growing at 2.5 times than the broader economy. If we don’t capture those jobs in Georgia, then other states would reap those benefits. Forfeiting jobs makes no sense for Georgia’s future.

Momentum around data centers is slowing in the state because of misconceptions around energy and resource use. Georgia Power recently froze residential rates for three years to address one of those misconceptions.

We also have an incredible example we can look to right at home: the decline in Georgia’s film industry taught us what happens when you build momentum and then pull back. We invested billions of dollars, built film production centers, trained Georgia workers to work in the industry, then hesitated on incentives while our competitors doubled down. Now we’re left with infrastructure we can’t fully utilize, and people who are in the entertainment industry are left without a future.

With data centers, we’re at a similar crossroads. We can either maintain our competitive advantage, or we can repeat our film industry mistakes and watch while data center investment flows to other states and countries.

Today, Georgia’s leaders have a choice: Either welcome the data center infrastructure that will support tomorrow’s AI economy or allow it to slip away.

The construction industry stands ready to partner on solutions that will work for all Georgians, and we urge county and state lawmakers to keep Georgia’s economy competitive for the long term by embracing a future economy that will benefit all of us.

Bill Anderson has served as president and CEO of the Associated Builders and Contractors of Georgia for nearly three decades. He leads the Chapter’s team and executes the strategic vision created in partnership with the board of directors. Under Anderson’s leadership, ABC of Georgia has significantly expanded its programs, services and financial stability.