Atlanta has implemented new restrictions on data center construction amid concerns about their impact on urban development. According to Will Parker’s report in The Wall Street Journal, the city council banned new data centers near transit and the popular Beltline area in September 2024. The decision comes as Atlanta experiences a 76% increase in data center power capacity compared to the previous year, driven by major tech companies like Meta, Google, and Microsoft seeking locations for AI computing facilities. Mayor Andre Dickens emphasized that people-centered development, including affordable housing and retail, must take priority over data centers.
The rapid expansion has been fueled by Atlanta’s cheap electricity, state tax incentives, and existing infrastructure. Industry analysts predict the metro area’s data center power capacity will exceed 4,000 megawatts by 2028, marking a thirtyfold increase since 2012. The restrictions reflect growing concerns about resource allocation, as the region faces a housing shortage of approximately 100,000 units. While data centers continue to find welcome markets elsewhere, with companies like Amazon Web Services investing billions in other states, Atlanta’s decision could influence other cities grappling with similar growth pressures.