A data center behemoth withdrew a controversial tax break request for one of its projects that’s already under construction along the Atlanta Beltline following strong local opposition.
Kansas-based Quality Technology Services applied in April for roughly $45 million in tax savings with the Development Authority of Fulton County (DAFC), sparking more than 100 written comments from residents and community stakeholders — nearly all opposed.
DAFC Executive Director Sarah-Elizabeth Langford told The Atlanta Journal-Constitution that because QTS withdrew its request, the company can reapply at any time. She said the DAFC board would like for QTS to meet with neighborhood groups if it were to pursue the tax break in the future.
“It is important to me to listen to neighborhood associations and (neighborhood planning units),” she said in an email. “The board and staff always encourage applicants for incentives to communicate with neighborhoods surrounding their project.”
In a written statement, QTS said the company “is engaging with key community stakeholders and continuing education and outreach efforts.”
“QTS remains committed to working with all local community leaders,” the statement continued.
Data centers, which house gigantic warehouses filled with computer equipment, have become one of the fastest-growing uses for industrial land in the United States as companies digitize and internet usage grows. It’s an industry Georgia leaders have worked to court, typically through lucrative state and local incentives, though taxpayer groups have questioned the need for incentivizing the high-demand projects.
The company, which is owned by investment giant Blackstone, is currently building a 50-acre expansion of its Atlanta data center campus near West Marietta Street. QTS said the expansion represents a roughly $1.3 billion investment and would involve up to 600 temporary construction jobs and up to 20 permanent jobs.
Community leaders, including the heads of both Invest Atlanta and the Beltline, criticized the tax break request, since the expansion is already underway. Several residents said granting a tax break for a project that would happen anyway only hurts local governments’ ability to provide services or fund things like affordable housing.
Credit: TNS
Credit: TNS
Arthur Toal, who leads the Howell Station Neighborhood Association and lives across from the expansion site, said he would expect QTS to attend one of his organization’s meetings and a NPU-K meeting if the company reapplies for tax savings.
In an email to his association, he wrote: “Thanks to your efforts, $45 million in Fulton County taxpayer money will be used to fund our roads, parks, schools, and safety instead of padding QTS’s bottom line.”
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