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OpenAI's $20 Billion Georgia Data Center Could Help Cut Property Taxes. What Is Actually Approved?

Effingham officials say Project Camellia could help deliver about six mills of combined property-tax relief this year. Some pieces are already tied to the project, others still require action, and residents are asking whether the tradeoff is worth it.

Rows of server racks inside a data center
Data center server racks. Photo by Carl Lender, via Wikimedia Commons, licensed under CC BY 2.0. Image is illustrative and was not taken at Project Camellia.

Effingham County's giant OpenAI data center is no longer only a technology or economic-development story. It is becoming a property-tax story for thousands of Georgia homeowners.

County officials said this week that revenue connected to Project Camellia, OpenAI's planned data center campus near Rincon, is helping set up what they describe as the largest property-tax reduction in county history.

The headline number is roughly six mills of combined relief. But that number is not one single tax cut, and not every piece is final.

The Georgia inside the storyA $20 billion AI project could reshape how one Georgia county pays for schools, county government and local services. The real story is not simply the size of the investment. It is which tax promises are already in place, which still need approval, and what residents are being asked to accept in return.

First, What Is Project Camellia?

OpenAI says Project Camellia is a long-term data center project it is designing and developing in Effingham County. The company plans to contract with Georgia Power for 3.2 gigawatts of electricity, delivered in phases between 2028 and 2032.

Effingham County has described the broader development as a roughly $20 billion investment. OpenAI has said it will pay the full infrastructure and electric-service costs required to serve the project, rather than shifting those project-specific costs to existing ratepayers.

If you want the broader statewide context on Georgia's data-center expansion, see ALL-N-GEORGIA's earlier explainer, Georgia Is Betting Big on Data Centers.

Where the Six Mills Come From

Effingham County's August 24 announcement breaks the relief into several pieces rather than one blanket reduction.

  • Two mills from ECIDA: The Effingham County Industrial Development Authority says it will suspend its two-mill property-tax levy for the duration of OpenAI's tax-abatement agreement.
  • About two county mills: The Board of Commissioners is scheduled to consider a county millage reduction on September 1.
  • About two school-system mills: County officials say Project Camellia-related funding will support additional relief connected to the school district.

That is why the careful language matters. Effingham property owners could receive about six mills of combined relief this year. Parts of the package are tied to the development authority's actions, while the county millage itself still requires action by commissioners.

Project Zero Goes Further

County leaders are also using the Project Camellia deal to launch a longer-term initiative called Project Zero. Its stated goal is to eliminate county homestead property taxes.

That does not mean OpenAI has already eliminated property taxes in Effingham County.

The county says ECIDA will provide $30 million annually for three years to support additional tax relief. Officials also say that if voters approve a Local Homestead Improvement Adjustment Grant referendum in November, approximately $13 million could be used toward a 2027 phase of Project Zero.

In other words, the long-term promise depends on future revenue, government action and, in at least one important piece, voters.

There Is Another Side to the Deal

The data center itself is receiving a significant tax benefit. Reporting on the development agreement says the project receives a 50 percent property-tax abatement for 15 years at fixed 2026 millage rates.

That creates an unusual local bargain: the county is giving the project a large abatement while arguing that the remaining revenue generated by the enormous development can still produce enough new money to reduce the burden on homeowners.

County officials have promoted the arrangement as a way to turn industrial land into a stronger tax-producing asset. Residents who oppose or question the project are focused on a different calculation.

Residents Are Asking What the Savings Cost

GPB reported that some residents living near the roughly 1,400-acre site remain concerned about noise, light, water, power demand, air quality, property values and the process used to approve the development.

One nearby homeowner estimated that his own property-tax savings could be around $1,000 a year, but told GPB that he does not believe the savings outweigh the quality-of-life risks he fears from living near a hyperscale data center.

That $1,000 figure is one resident's estimate, not a county-wide savings guarantee.

Effingham County has continued publishing information about Project Camellia, including an August 27 notice addressing noise concerns. The county also scheduled a public information session for August 29.

What Happens Next

The next concrete date is September 1, when Effingham County says commissioners will set the millage rate and consider the county portion of the proposed relief.

After that, the November referendum could determine whether another part of Project Zero can move forward for 2027.

Meanwhile, Project Camellia itself is expected to develop in phases, with power delivery beginning in 2028.

Bottom lineProject Camellia is already influencing Effingham County's tax strategy, but "OpenAI is eliminating property taxes" goes too far. The more accurate story is that county leaders are using revenue and land-sale proceeds tied to the project to pursue a mix of current, proposed and voter-dependent property-tax relief.

That distinction may sound technical, but for Effingham homeowners it is the difference between a campaign-sized promise and a tax bill.

Sources & Further Reading

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