At least six data centers operate near Atlanta’s 22-mile Beltline trail that is popular with walkers and joggers. Atlanta’s city council wants to make certain those are the only digital hubs built in the area.
The council will vote next week on measures to ban new data center development along the Beltline corridor and near MARTA mass-transit stations. The proposals would not affect existing data centers.
"Land in our city is a finite resource, especially in high-demand neighborhoods like downtown, Midtown and near the Beltline and, despite the huge growth of the industry, data centers don't create many local jobs compared to other sectors," council member Jason Dozier told CoStar News.
The move comes as some regions around the world try to clamp down on data center development, saying they create few new jobs, gobble up real estate that could be used for other things like apartments and retail, and have large power demands. The Georgia Legislature this year considered a two-year suspension of tax breaks given to data center developers, but Gov. Brian Kemp vetoed it.
Data center construction activity in Atlanta rose 76% in the first half of 2024 compared to the same time last year, according to a recent report by brokerage CBRE. Atlanta also passed Northern Virginia as the top U.S. market with the most colocation capacity under construction, according to a JLL report issued this week. A colocation data center leases server space to multiple tenants.
Diverting Resources
The proposals to limit data center development are sponsored by all members of the Atlanta City Council. While the proposals acknowledge the importance of data centers for economic development, they say that they’re inappropriate for certain neighborhoods.
“The existence of data centers presents a trade-off, diverting resources and focus away from alternative urban development priorities like affordable housing, public transportation and green areas,” according to the proposal about banning development along the Beltline corridor.
One proposal would restrict new data center development within the Beltline Overlay district, a specially zoned area that covers land where the Beltline passes. The second proposal would place restrictions within a half-mile of “high-capacity transit stops.” MARTA operates rail and bus stations throughout the Atlanta city limits.
Some of the existing data centers located in the Beltline Overlay district include two facilities operated by QTS at 1025 Jefferson St. NW and 1033 Jefferson St. NW, and one operated by DataBank at 1100 White St. SW.
Pushback to the potential ban was not immediately clear. QTS, the Metro Atlanta Chamber of Commerce and the Technology Association of Georgia didn't immediately respond to phone calls from CoStar News for comment.
The Beltline loop that circles in-town Atlanta passes through dozens of neighborhoods and has stimulated the development of multifamily, retail and office properties along its route. Trail construction began in 2005, and the project is estimated to be completed by 2030.