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Microsoft seeks to unwind Atlanta data center tax incentive deals
The company is working with Fulton and Douglas counties to roll back property tax break agreements for projects in East Point, Palmetto, and Douglasville.
Microsoft is working to unwind local tax incentive agreements tied to three Metro Atlanta data center projects, a spokesperson confirmed to the Atlanta Journal-Constitution.
The effort involves rolling back incentives approved in recent years by development authorities in Fulton County and Douglas County, with Develop Fulton coordinating with Microsoft on the existing transactions for sites in East Point, Palmetto, and Douglasville.
The move comes amid growing criticism from local governments, residents, and other tech companies as Microsoft expands data center capacity across the country. The article cites broader industry trends including 11% US data center inventory growth in the second quarter versus the same period in 2025, alongside vacancy rate declines linked to demand for space.
The report also notes that at least 38 states offer data center incentive programs, ranging from rebates to sales and use tax exemptions, and that some states have rescinded parts of those incentives. In July, New York issued a yearlong moratorium on data center construction while developing new standards, and Fulton County commissioners recently approved a nonbinding resolution opposing further tax breaks and financial incentives for data centers.