HB1323: HB1323 Electrical service; require new data centers to operate as hybrid power data centers

Data centers, the large facilities that store and process computer data, use significant amounts of electricity. This bill would add a new article to Georgia's electrical service law (O.C.G.A. Chapter 3 of Title 46) requiring any 'new data center,' defined as one that first gets a certificate of occupancy after July 1, 2027, to operate as a 'hybrid power data center.' The bill lists ten specific ways a data center could qualify as hybrid, such as combining on-site or off-site solar power with grid electricity, pairing solar with battery storage, using hydrogen fuel systems, or running on renewable energy sources like wind, biomass, or landfill gas alongside the grid. Before starting operations, a new data center would have to submit documentation to the Public Service Commission proving it meets this requirement. If a data center does not comply, the commission could file a complaint and the Attorney General could sue in the superior court where the data center is located, seeking civil penalties or a court order forcing compliance. The commission would also be authorized to write rules to carry out the law.

• Requires any new data center that receives its certificate of occupancy after July 1, 2027 to operate as a hybrid power data center combining renewable energy with grid electricity.
• Defines ten specific types of qualifying hybrid setups, including solar-plus-storage, solar microgrid, renewable grid, and solar-hydrogen configurations.
• Requires new data centers to submit compliance documentation to the Public Service Commission before beginning operations.
• Authorizes the Attorney General to sue in superior court for civil penalties or injunctive relief if the Public Service Commission files a complaint against a noncompliant data center.
• Directs the Public Service Commission to write rules and regulations needed to enforce the new requirement.

Companies and developers building new data centers in Georgia after July 1, 2027, the Public Service Commission, which must review compliance documentation and write enforcement rules, and the Attorney General's office, which would handle enforcement lawsuits against noncompliant facilities.

Data centers can use large amounts of electricity, and this bill would push new facilities toward mixing renewable power with the grid rather than relying on grid electricity alone. Developers would face upfront documentation requirements and potential lawsuits and penalties if they build a new data center that does not meet the hybrid power standard.

• Adds new Article 5 to Chapter 3 of Title 46 of the Official Code of Georgia Annotated, creating Code Section 46-3-560.
• Defines 'data center' broadly to include any facility or interconnected facilities used to process, store, retrieve, or transmit data.
• Defines 'new data center' as one receiving its first certificate of occupancy after July 1, 2027, meaning existing data centers are not covered.
• Lists ten qualifying categories of 'hybrid power data center,' from off-site solar hybrid to solar thermal hybrid setups combining renewables with grid power.
• Requires new data centers to submit documentation to the Public Service Commission before operations begin to show compliance.
• Allows the Attorney General, upon a Public Service Commission complaint, to sue in the relevant superior court for civil penalties or injunctive relief.
• Directs the Public Service Commission to issue rules and regulations to carry out enforcement, as long as they are consistent with the new law.

1. 2026-02-19House Second Readers (House)
2. 2026-02-18House First Readers (House)
3. 2026-02-17House Hopper (House)

• Yasmin Neal (D, HD-079)Primary sponsor

• data centers
• electricity regulation
• renewable energy
• Public Service Commission
• energy policy