COVINGTON, Ga.—The city of Covington is one step closer to hosting its first data center.

On Jan. 6, the Covington city council approved the final reading of an ordinance that annexes a warehouse property into the city. The current owners intend to sell the property to Serverfarm, which plans to build a data center on the site. 

Upon this annexation, the property, located at 20835 Hazelbrand Road, is redesignated from Newton County jurisdiction to being inside the city of Covington. The county does not allow data centers to be built outside of Stanton Springs, but will not face these restrictions when operating under the city of Covington.

Despite previous meetings producing significant discussion of the topic, the council passed the item 5-1 without discussion on Monday. Councilman Anthony Henderson dissented on the vote but the annexation ultimately went through.

Based on recommendations from the planning commission and a vote during Monday’s meeting, the site will be zoned as M2 heavy-industrial.

Upon its construction, this would be Covington’s first data center. Serverfarm has data centers across the globe, including one in Gwinnett County. 

The council voted 5-1 to approve a first reading of the proposal in December. Covington’s planning and zoning director Judy Thagard previously mentioned that there have been difficulties along this road “for years” and that any traffic problems that arise would become the city’s responsibility to manage, not the county’s. 

But in the public hearing, Jason Volk, vice president of Serverfarm, addressed the concern that the proposed facility could congest transportation on the road. 

“Once we’re done with construction, there won’t be large semis coming in on a daily basis,” Volk said. “...The most you’ll have are the employees and the customers’ employees servicing their equipment. So a much lower impact for the community on the roadways.”

The city could see monetary benefits from the parcel annexation and subsequent creation of the data center. Tax revenue is projected to increase and the location will require operational utilities, including gas, water and sewage.

The building’s value is currently listed at approximately $32.4 million. This will increase Covington’s tax revenue to $87,352.34 annually at the city’s 5.756 millage rate. However, Servermart has reportedly placed a value of $50 million on the building. This would bring the city’s annual tax revenue at $127,812.35.

Additionally, the site is expected to require 15 to 25 full-time employees, and Volk presumes the positions would be middle to high-paying. 

Elsewhere in Monday’s meeting, the council discussed this year’s posts up for reelection. 

Three posts will be voted upon this November: Post 1 East, Post 2 West and Post 3 West. These seats are currently filled by Susie Keck, Charika Davis and Anthony Henderson, respectively. Early voting dates have not yet been announced.

The qualifying fees were set at $360, or three percent of the annual salary of the office. Qualifying begins Aug. 18 and goes to Aug. 22, which is when anyone intending to pursue candidacy for a post must submit the required paperwork and fees. 

Henderson announced during the meeting that he will be seeking reelection this November.

“I think I’ve been fair, firm and consistent, and that’s what I’ll continue to do,” Henderson said.

Council members also approved the following:

Contract awarded to Yancey Brothers for the purchase of a Caterpillar 938-14A Wheel Loader for $308,228 by the transportation department 

Renewal of biennial pledge to practice and promote civility in the city of Covington, signed and adopted by all councilmembers and the mayor

Engineering services contract awarded to QK4, Inc. for Project PI# 0019217

Contract awarded to Power Pros Power Line, LLC for just over $112,000 to construct a power line along Hwy 278 that will feed Piedmont Newton Hospital

Appointment of Councilwoman Kim Johnson as Mayor Pro-tem

Appointment of Councilman Jared Rutberg as Mayor Pro-tem Elect

The next Covington city council meeting is set for Tuesday, Jan. 21 at 6:30 p.m. in the Council Room at 2116 Stallings Street.