$8 Billion Data Center Deal Could Cost Troup County Schools $600 Million

According to a Memorandum of Understanding (MOU) signed earlier this year between the Development Authority of LaGrange and Rosewall Pines Holdings LLC, the company behind the hyperscale data center campus, the project will move forward in five phases, backed by an $8 billion bond structure. While the headlines focus on the eye-popping dollar figures, a closer look at the fine print reveals serious concerns for taxpayers and parents in Troup County.

Schools Locked Into a 20-Year Tax Break

The deal grants Rosewall Pines a 50% reduction in property taxes for 20 years through a “Payment in Lieu of Taxes” (PILOT) agreement.

That means instead of collecting around $60 million annually in school property taxes once the campus is fully built, the Troup County School District will receive only $30 million a year during the PILOT period. Over two decades, the district could lose an estimated $600 million in funding that would otherwise go to teachers, classrooms, and students.

Even more troubling: the School Board signed onto this arrangement in a binding intergovernmental agreement that could last up to 50 years. Future boards will have no easy way to reverse course, even if the impact on schools proves devastating.

Jobs: Far Less Than Advertised

For an $8 billion project, the job creation requirements are shockingly small. The MOU requires only 30 jobs per phase for the first three phases—and zero jobs for Phases IV and V, which make up the bulk of the investment.

At full build-out, the company is only on the hook for about 90 permanent jobs. That’s roughly one job for every $88 million in tax incentives being handed out.

“This isn’t economic development—it’s corporate welfare,” said one local resident. “We’re giving away the future of our schools for fewer jobs than a mid-sized grocery store would create.”

Company Faces No Real Penalties

Section 4.1 of the agreement spells it out clearly: the company is not obligated to make any particular level of investment or create any particular level of jobs.

While the deal mentions “goals” for jobs and investment, enforcement is weak. Oversight depends largely on company-submitted annual reports, and penalties for falling short are minimal.

Buyout for Pennies

Adding insult to injury, the company has the option to buy the entire project from the Development Authority for just $10 (plus paying off any bond obligations). After enjoying 20 years of steep tax breaks, Rosewall Pines could walk away as the full owner of the property for little more than pocket change.

Public Carries the Risk

To structure the deal, the Development Authority of LaGrange will issue an $8 billion revenue bond. Although officials say taxpayers aren’t directly liable, the Authority will technically hold the title to the property during the bond period. If the company walks away or defaults, the community could be left with a massive, highly specialized facility that has limited reuse potential.

Lack of Transparency

Section 6.2 of the MOU requires confidentiality of company information. While it acknowledges Georgia’s Open Records Act, in practice this means details may only come out after lengthy requests or even litigation. Citizens are largely kept in the dark until after decisions are finalized.

The Bottom Line

On paper, the data center project looks like a triumph: billions in investment, headlines about growth, and promises of high-tech jobs. But when you dig deeper, the numbers don’t add up.

• Schools could lose over $600 million in desperately needed funding.

• Only about 90 jobs are required in return.

• The School Board is locked in for decades.

• The company can buy the project for $10 after enjoying massive tax breaks.

• The public carries the long-term risk, while the private company enjoys guaranteed benefits.

Parents, teachers, and taxpayers deserve to ask: Who really wins in this deal—Troup County, or the corporation?

We will continue to monitor as this deal continues to unravel.