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Data centers are effectively giant warehouses filled with computer servers to store online data and power technologies like artificial intelligence. They’ve become one of the hottest uses for undeveloped land in metro Atlanta, raising concerns about their power consumption, water usage and prevalence.

Since 2023, data center construction in metro Atlanta has increased 211%, which is the fastest among major data center markets across the country, according to real estate services firm CBRE. Microsoft has targeted Atlanta’s Southside for data center development, paying at least $171 million so far this year to acquire more than 480 acres, including the Union City site.

The Union City project is being built by other companies, but the end user will be technology giant Microsoft, the company previously confirmed to The Atlanta Journal-Constitution.

ExploreFulton board approves controversial $10M tax break for Elon Musk’s X

The project first came into the public eye last month when one of the project’s developers, EdgeConneX, received a $75 million tax break over 10 years from the Development Authority of Fulton County. The controversial abatement will help cover topography challenges and electricity usage taxes for the site. An EdgeConneX adviser also told the DAFC board it would level the playing field against three other sites under consideration.

ExploreAtlanta considers data center ban along Beltline, near transit stops

Redmond, Washington-based Microsoft reported $212 billion in sales revenue and a net income of $72.4 billion during fiscal year 2023, ranking 13th on the most recent Fortune 500 list. The company operates hundreds of data centers across the globe, including several in Fulton. In 2020, DAFC voted to approve tax breaks totaling about $32 million for Microsoft for a pair of data centers in the county.

DAFC estimates local governments will collect $198 million in taxes from the Union City project over the next decade despite the tax abatement. DAFC earns fees off of the tax break deals it approves that fund its budget.

The project’s first phase is expected to open in 2026, with additional phases coming online through 2032.