Georgia has issued significant tax breaks for data centers since 2018. The tax breaks enabled the state to become a hotspot for data center development. The Atlanta Business Chronicle reports that, as a result of the tax breaks, Georgia has forgone approximately $2.5 billion in revenue in the current fiscal year. Now, some the Georgia legislature want to rein in some of the tax breaks.

Data centers can generate substantial tax revenue for local communities. However, they tend to create few permanent jobs and can consume large amounts of land, water, and electricity.

Besides the tax break issue, the legislature is hoping to ensure that the costs incurred to provide electricity service to data centers are not passed on to residential and retail customers. It would require contracts between electric utilities and data centers to include terms and conditions designed with that goal in mind.

In December, the PSC approved Georgia Power’s plan to build 10,000 megawatts of power primarily to serve data centers.

Walls have been tilted at Colton Commerce Center, a four-building 182,123-square-foot Class A industrial park with buildings ranging from 40,000 to 50,000 square feet located in a federally designated Opportunity Zone at 2245 West Valley Blvd. in Colton. The buildings at this Inland Empire development are available for sale or lease, with construction scheduled for completion in December 2025. 

JLL’s team of Cody Clayton, Scott Coyle and Jay Cuccia are marketing the property on behalf of ownership. “Unlike standard industrial building acquisitions, which offer no capital gains deferral or exemption, ownership at Colton Commerce Center allows buyers to eliminate federal capital gains tax on appreciation if held for 10 years, translating into millions in long-term savings,” said Clayton.

He continued, “Purchasing one of the buildings at the property would allow owner-users to avoid exposure to future rent and building cost increases while securing space in one of the most sought-after industrial markets in the United States.”

On June 18, join industry-leading experts when they explore the most important topics in today’s CRE markets. Register to attend and hear expert insights first-hand, network with the best in the industry, and sit in on discussions you won’t hear anywhere else. The 9th Annual Connect Los Angeles 2025, June 18 at the Intercontinental Los Angeles Downtown.