Covington Council debates annexation of 520 acres for data center development

The Newton County Board of Commissioners convened on May 6, 2025, to discuss a significant annexation proposal from the City of Covington. The proposal involves the annexation of 520.5 acres of land along Gregory Road, which includes plans for a data center campus and residential estate lots.

Shaina Applewhite, the Director of Development Services, presented the details of the annexation, which includes 18 tracts of land. The proposal seeks to rezone approximately 213 acres to M2 industrial zoning for the data center, potentially covering up to 1.4 million square feet. The remaining 307.5 acres would be developed into estate lots of at least 2.5 acres each.

Concerns were raised regarding the potential impacts of the development on local infrastructure, particularly water, sewer, and transportation. The data center is expected to generate significant water discharge, estimated at 360,000 gallons per day, raising questions about the capacity of existing water systems. Additionally, improvements to Gregory Road will be necessary, which may require acquiring additional right-of-way from adjacent landowners.

The board discussed the implications of the annexation, including the loss of impact fees that the county would typically collect from developments. The estimated impact fees from the project could be around $255,000 for industrial use and $94,000 for residential use, but these would not be recoverable if the property is annexed.

Commissioner Henderson expressed opposition to the annexation, emphasizing the potential long-term financial benefits for the county if the project remains under county jurisdiction. He highlighted that the county could lose out on significant property tax revenues, projected to exceed $19 million annually, along with franchise fees from the electric provider.

The board ultimately faced a deadline to assert any objections to the annexation by May 9, 2025. A resolution to formally object to the annexation was prepared for consideration, reflecting the board's concerns about the impacts on county resources and the potential loss of revenue.

As discussions continue, the board must weigh the immediate benefits of the annexation against the long-term financial implications for Newton County residents.