When Data Centers Meet Zoning Reality in Metro Atlanta: A New Era of Land-Use Oversight

By: Alisha McCrimmon and Karen Kenner Scott Esq.

Over the past month, Atlanta has moved closer to changing how we treat new data centers inside the city limits. The Zoning Committee advanced Ordinance 25-O-1063, and if the mayor signs it, developers will no longer move these projects through the typical by-right path. They will have to secure a special use permit and show, in real detail, how the facility will manage water consumption, energy demands, tree preservation, and the impact of any required transmission lines. The ordinance also places limits on building materials and floor size, something we have not seen the city address with this level of specificity before.

Location is becoming just as important as design. The proposal would bar new data centers within a half mile of MARTA, the BeltLine, and neighborhood commercial districts such as Little Five Points, Inman Park, and Virginia-Highland. It would also create separation requirements between centers unless they are part of a unified development plan. These shifts signal that the city is trying to slow down the spread of large-scale digital infrastructure in places that were never intended to carry that level of environmental and utility load.

You can feel the ripple effect across the metro area. Several surrounding counties are already rethinking how they approach data-center development because they have been feeling the strain for years. Places in Douglas, Fayette, and parts of unincorporated Fulton have dealt with noise from generators, pressure on older utility systems, and community frustration when facilities sit too close to established neighborhoods. As concerns grow louder, those counties are beginning to tighten their zoning codes, pause approvals, or launch studies to understand the long-term impact on water and power availability.

One thing I am watching closely is how developers shift from one jurisdiction to another as rules change. When Atlanta tightens its standards, it is natural for companies to look to the suburbs for a faster path, which puts new pressure on communities that may not have planned for this level of industrial-scale use. I am already seeing early signs of that movement in conversations with owners and investors who assumed the entitlement process would be straightforward. The landscape is changing quickly, and the planning work on the front end matters more than it did even a year ago.

For property owners and developers, the message is simple. The metro area is no longer treating data centers as routine industrial projects. Each proposal is going to be judged on its footprint, its utility demands, and its relationship to the surrounding community. That means more coordination, more documentation, and more time. For residents, this shift is an effort to balance economic growth with the reality that these facilities are not small users of land, water, or energy.

As we head into the year’s final stretch, this is a reminder of how our region is evolving. Technology is moving fast, and local governments are working to keep pace. Thoughtful planning is going to matter even more in the months ahead, and I will continue keeping an eye on how each jurisdiction responds so my clients are prepared for what comes next.

Click Here to Learn More: Atlanta City Council Approves $975.4M Budget, Millage Rate, Personnel Actions for FY 2026 | Press Releases | Atlanta City Council, GA

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