Newton County objects to Covington annexation for large proposed data center near Lake Varner

Newton County commissioners voted to object Tuesday to a City of Covington annexation request that would bring about 520.5 acres around Gregory Road and Lake Varner into Covington and allow rezoning of roughly 213 acres for an industrial M2 district to accommodate a proposed data-center campus.

County development staff and the county attorney told commissioners the proposal could allow up to 1,410,000 square feet of data-center buildings and would change allowable uses and density in areas the county’s comprehensive plan designates for conservation, recreation and live-work corridor development.

Shaina Applewhite, Newton County director of development services, told the board the applicant’s package proposes a campus-scale industrial zoning and that "there are potential water, sewer, and stormwater impacts" tied to the project; staff estimated the proposed development could generate about 360,000 gallons per day of water discharge. Patrick Jogstadter, Newton County attorney, told the board, "In order to assert an appropriate objection and to initiate the dispute resolution process, it is necessary that the county act before May 9, so this will be your only opportunity to do so."

Why it matters: county staff said the annexation would remove the property from county land-use review and impact-fee collection while creating infrastructure demands the county could still be required to address along Gregory Road and in shared water infrastructure. The county’s analysis noted Lake Varner and local water mains serve multiple jurisdictions and that heavy industrial water users such as data centers can create large, continuous water and discharge demands.

Public commenters urged caution. Resident Star Smith, who gave her address as 581 Gregory Road, told the board, "I built my home here for the peace and the beauty and the quality of life," and said a campus-scale data center would bring 24/7 operations, noise, traffic and light pollution and could stress Lake Varner, the local drinking-water source. Another resident, Brian Fricks, told the board that data centers are "major...power hogs" and that the county should prioritize protecting water resources. "You can't drink money," Fricks said.

Board action: After discussion, commissioners moved a resolution objecting to the annexation and authorizing county staff and counsel to send the formal objection and pursue the statutory dispute-resolution process. The board recorded the vote as 3 in favor, 1 opposed and 1 abstention; county staff noted the objection must be filed within the statutory timeframe to preserve the county’s right to arbitration.

What county staff emphasized: the county’s presentation flagged three principal areas of concern: (1) potential water supply and discharge impacts tied to large cooling and make-up water demands and to how treated discharge would be managed relative to Lake Varner; (2) transportation impacts, including the need to improve and possibly widen Gregory Road and to acquire additional right of way because the road as-built does not meet county standards; and (3) plan-compatibility and density changes, because the city’s proposed lot sizes (the applicant proposes 2.5-acre estate lots in some areas) and M2 industrial zoning would not match the county’s current future land-use designations for conservation/recreation and live-work corridor areas.

County staff also provided low-end impact-fee estimates included with their packet (staff cited $255,000 in potential industrial impact fees and roughly $94,000 for the residential portion on the low end) and summarized comments from other jurisdictions and utilities about water-main capacity and shared-system impacts.

What happens next: Under Georgia law for municipal annexations, the city and county have a prescribed process for notice, objection and arbitration; the county’s formal objection triggers the dispute-resolution timeline. The annexation application remains pending with the City of Covington and could proceed into the state-prescribed resolution process if the city pursues annexation despite the county objection.

Community context: The annexation request drew public concern about Lake Varner’s status as a drinking-water source, traffic on Flat Rock/Gregory corridors, and whether the applicant has a named end user. County staff noted the application lacked a confirmed end user and that developers often request city zoning as part of a market-phase strategy; the city has not yet completed its public process on the rezoning application that accompanied the annexation request.

The board’s resolution directs county staff and counsel to send the objection letter and to take the steps necessary to participate in the dispute-resolution process under state law.