Covington’s experience
Outside Atlanta, in Newton County, the city of Covington is preparing to vote on a 100% homestead exemption due to all the revenue coming in from a data center. If approved, it would eliminate city property tax on all primary residences.
Fleetah Baggett
contributed
Covington Mayor Fleetah Baggett and county and city officials negotiated with Amazon Web Services for two years before agreeing to allow it to build a data center there.
After they came to an agreement, Baggett sought the exemption, and the Covington City Council passed the resolution Jan. 22. The measure,
House Bill 1503, cleared the Georgia General Assembly March 20.
Baggett said the vote is scheduled to take place during the November general election.
“We’re the first city to try and do this,” she said. “So we had to pay a lot of legal costs because it’s never been done.”
The negotiation with AWS was intense, and she often came under fire from other officials who felt she was going to scare them off.
“(AWS) wanted us to pay for this or that; I told them forget it,” Baggett said. “These are multi-billion dollar companies. Our little town isn’t interested in financing anything for them.
AWS even agreed to build a $100 million water treatment and cooling facility to support its data center, which will be approximately 1.4 million square feet, according to a
Regional Impact Statement filed with the Georgia Department of Community Affairs in 2025.
“The negotiations were tough, and some of the financial numbers were unbelievable,” Baggett said. “We had to turn our phones sideways when making calculations. It was big money.”
The Covington News
reported that local government officials are anticipating $500 million in revenue over a 16-year period, which is approximately $30 million per year. Newton County has approximately 115,000 residents, and the city of Covington has approximately 15,000 people.
As a reference, Floyd County has approximately 100,000 residents, and the city of Rome has approximately 39,000 residents.
“The story here is that, if you negotiate tough, you can get a deal that is fair for everyone and a huge benefit to taxpayers,” Baggett said.