ATLANTA — Georgia’s reputation as a top state for business is facing new scrutiny as lawmakers take a closer look at the impact of data centers on the region’s water supply.

A special legislative panel is reviewing how to balance economic growth with environmental sustainability as data centers continue to multiply across metro Atlanta. According to Danny Johnson with the Atlanta Regional Commission, more than 50 data centers are already operational in the area, with another 40 currently under consideration.

“This trend brings both opportunity and risk,” Johnson told lawmakers. “Risk that is our responsibility to manage.”

Johnson pointed to metro Atlanta’s limited surface water resources and the strides local governments have made in recent years to conserve water.

Now, advocates are urging the state to consider pausing tax incentives that attract the resource-intensive facilities and to require more transparency from tech companies about how much water and energy they consume.