HB1059: HB1059 Data Center Impact Assessment and Development Moratorium Act of 2026; enact

Georgia has become a major hub for data centers, with roughly 93 facilities operating or planned statewide. This bill responds to concerns that this growth is straining the electric grid, water supplies, air quality, and local housing markets by imposing a temporary building freeze and setting up a study commission. The bill adds a new section to Georgia law (O.C.G.A. § 46-1-7) barring counties, cities, and other local governments from issuing any permits or licenses that would allow construction of a new data center between July 1, 2026, and December 31, 2028. Permits issued before July 1, 2026 are not affected. The bill also creates the Data Center Impact Assessment Commission, a 14-member panel drawn from the Governor's office, legislative leaders, the Public Service Commission, and several state agencies, to spend three years studying data centers' effects and report recommendations, including possible statewide zoning rules, by October 1, 2029. The law would take effect July 1, 2026.

• Bars every county, city, and other local government in Georgia from issuing permits, licenses, or certificates that would allow construction of a new data center between July 1, 2026 and December 31, 2028.
• Exempts data center permits or licenses already issued before July 1, 2026 from the construction freeze.
• Creates the 14-member Data Center Impact Assessment Commission, with appointees from the Governor, legislative leaders, the Public Service Commission, and several state agencies.
• Directs the commission to conduct a three-year study of data centers' effects on the power grid, water supply, health, and housing prices.
• Requires the commission to submit a written report with findings and policy recommendations, including possible statewide or model zoning rules, to state leaders by October 1, 2029.
• Sets the effective date of the new law as July 1, 2026 and repeals any conflicting laws.

Data center developers and operators, local governments and zoning authorities across Georgia, electric utilities and electric membership corporations, the Public Service Commission, several state agencies including the Department of Economic Development and Department of Community Affairs, and residents near current or planned data center sites.

For roughly two and a half years, local governments could not approve new data center projects, which would pause construction activity, related jobs, and tax revenue tied to the industry in affected communities. Meanwhile, the new commission's study and 2029 report could shape how Georgia regulates data centers, including zoning, water use, and grid impacts, going forward.

• Section 2 lists legislative findings, including that about 93 data centers are operating or planned in Georgia and that they strain the power grid, water supply, and local infrastructure.
• Section 3 adds O.C.G.A. § 46-1-7, defining 'data center' and prohibiting local permits, licenses, or certificates for data center construction from July 1, 2026 through December 31, 2028.
• Section 3 exempts permits or licenses issued before July 1, 2026 from the moratorium.
• Section 3 establishes the 14-member Data Center Impact Assessment Commission with specified appointing authorities, including the Governor, legislative leaders, and the Public Service Commission chairperson.
• Section 3 sets member compensation rules, tying legislative members to standard legislative allowances and nonlegislative members to state expense reimbursement rates.
• Section 3 grants the commission powers to hold hearings, request documents and testimony, and request information from state agencies.
• Section 3 requires a three-year study and a written report with findings and zoning recommendations due to state leaders by October 1, 2029.
• Section 4 sets the Act's effective date as July 1, 2026, and Section 5 repeals conflicting laws.

1. 2026-02-02House Second Readers (House)
2. 2026-01-29House First Readers (House)
3. 2026-01-28House Hopper (House)

• Derrick Jackson (D, HD-068)Primary sponsor
• Kim Schofield (D, HD-063)
• Sandra Scott (D, HD-076)
• Viola Davis (D, HD-087)
• Billy Mitchell (D, HD-088)

• data centers
• local zoning permits
• electric grid
• water supply
• economic development policy