INFRASTRUCTURE: WATER, PART TWO

Written by Clara Fishel

Last month we covered the basics of water infrastructure in Savannah and Coastal Georgia: surface water, sewer, stormwater, and groundwater (the Aquifer). This month we look at some of our area’s major water users, and what the current landscape means for regional development.

Hyundai Metaplant. The $7.6 billion Metaplant in Ellabell sits in an area of coastal Georgia (Bryan County, a “yellow zone” per Georgia Environmental Protection Division) where major new groundwater permits are prohibited. Its interim water comes from four Floridan Aquifer wells across the line in Bulloch County (a “green zone”), permitted in 2024 for a combined 6.65 million gallons per day (MGD). Part of that capacity is also earmarked for the housing, retail, and warehouses growing around the plant.

The deal drew pushback. Bulloch County Commissioners approved it, residents sought a referendum, and the Ogeechee Riverkeeper appealed. The appeal settled with a commitment to find a permanent surface water source within 15 years and set up a $1 million fund that helps neighbors whose wells are affected.

Hyundai should stop drawing from the Aquifer around 2029–2030, once a river-fed plant in Effingham with an 18-mile line to north Bryan are complete. Wastewater around the Metaplant also had a rocky start, including a $30,000 state fine in 2025. It now runs through a new $129 million Bryan County plant that discharges to the Ogeechee River.

Data Centers. In July, Effingham County leadership and OpenAI announced Project Camellia, a 3.2-gigawatt data center campus near Rincon valued at $20 billion. The Public Service Commission approved its Georgia Power contract in August, with power phased in from 2028 to 2032.

Effingham County sits in a “red zone” so any cooling water must come from river supplies, not the Aquifer. OpenAI plans to use a closed-loop dry cooling system which are designed to minimize water usage and the county now estimates on-site demand at 30,000 gallons per day. However, critics point to the power plants serving the site, as one analysis estimated they could consume 11 to 22 million gallons per day (MGD). They also question a tax abatement negotiated under a nondisclosure agreement before the public announcement.

Savannah and unincorporated Chatham County adopted 155-day moratoriums on data centers of 10 megawatts or more, and on converting warehouses over 200,000 square feet to data center use. Garden City and Bloomingdale adopted pauses too.

International Paper. Hyundai was never the coast's biggest water user. In 2024, International Paper used about 39 MGD at its Chatham County sites, including roughly 21.5 MGD from its own wells. When IP closed its Savannah and Riceboro mills in September 2025, more than 22 MGD of aquifer demand disappeared. By early 2026, the Aquifer levels around Savannah hit a 70-year high.

Who gets that water is now central to the 2027 permit reset. Regulators are weighing whether to bank it for Aquifer recovery or share it with new users. Meanwhile, IP has listed its 735-acre riverfront mill site, and the Georgia Ports Authority has confirmed interest. IP's groundwater permit can only transfer to another papermill, so any new user will need its own water plan. Losing IP as a customer also leaves Savannah's surface water costs spread over fewer ratepayers.

What it Means for Regional Development. Rivers and groundwater do not follow state, county, or city borders so management of water infrastructure is complex, multi-jurisdictional, and affects many stakeholders. Some key takeaways for future development in Savannah and Coastal Georgia include:

  • Important Dates: area data center moratoriums expire in early 2027 and groundwater permits are reissued at the end of 2027

  • Developers need to obtain water and sewer “will-serve” letters as early in their process as possible. Know your water and sewer capacity, where it is coming from, and where it is going to.

  • Sites along the new river water lines in north Bryan and southern Effingham county will have an edge.

  • Plan for higher water, sewer, and stormwater charges in budgets and underwriting.

  • The public is very skeptical of data centers, and literally no one wants one in their backyard. The strain they put on area water resources may only be outdone by the strain they put on the electrical grid.

Sources and additional reading…

Clara Fishel https://www.level-cre.com
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SEPTEMBER 2026 : SALES REPORT