Effingham County plans to wipe out residential property taxes using OpenAI data center revenue

Effingham County commissioners approved, by a 4-1 vote, a tax-relief scheme that leverages OpenAI’s planned 3.2-gigawatt data center—known as Project Camellia—to slash residential property taxes by about 30% and eventually eliminate them for qualified homesteads by 2028. The six-mill reduction translates to roughly $38 million, with $27 million earmarked for immediate homeowner relief and the remaining $11 million set aside to begin erasing homestead taxes next year through the Local Homeowner Incentive Adjustment program.

County manager Tim Callanan explained that a “penny” sales tax will funnel its proceeds first to zero out homestead taxes, then to lower overall rates. The property-tax bill is expected within the next month, and a referendum on the incentive-adjustment grant will appear on the November ballot. While some residents remain skeptical, officials cite the data center’s low service demand and the resulting fiscal surplus as a sustainable funding source. Critics, including Republican strategist Katie Frost and Senator Raphael Warnock, warn that the project could raise water-use, utility-cost and noise concerns despite the tax benefits.