This Month's Latest Tech News in Atlanta, GA - Saturday May 31st 2025 Edition

Atlanta is firmly establishing itself as the Southeast's capital for AI and tech innovation, buoyed by a surge of ambitious startups, robust corporate expansions, and a thriving venture capital scene.

Recent data spotlights Atlanta's fast-growing ecosystem, where companies like NEMA, AIG, and Cargill are investing millions and adding thousands of tech-focused jobs, with centers for supply chain, data engineering, and AI analytics multiplying across the city details on major business relocations and expansions in Atlanta.

A vibrant funding environment is shaping this growth, as local startups excel in securing seed and Series A rounds in AI, fintech, and healthtech - 2025 alone saw new rounds ranging from $1M to $63M among top Atlanta tech firms ranging from Thunder Compute (AI GPUs) to OnPay (HR software) comprehensive Atlanta startup funding list.

Venture experts at the 2025 Venture Atlanta summit note,

“AI in the pocket of founders will bend the cost curve of innovation,”

projecting Atlanta's influence across the Southeast thanks to its proximity to Fortune 500s, top investor networks, and a collaborative ethos that uniquely positions startups for scale insights from Atlanta's top venture event.

As costs remain lower than other tech hubs and investors commit to deeper rounds, the vision of becoming a national top-five tech city feels within reach.

Atlanta has solidified its commitment to responsible technology with the formation of its Artificial Intelligence Commission, which convened for the first time this May to evaluate how AI can streamline city operations while safeguarding jobs.

Established by legislation championed by Councilmember Amir Farokhi and comprising civic officials, academics, and tech experts, the 13-member body will assess AI applications such as water main leak detection, emergency response, and improved permitting - aiming for efficiency and better resident service without workforce displacement (official city announcement on the AI Commission's first meeting).

Labor leaders and policy researchers have emphasized the need for strong job protections and targeted workforce strategies, as studies show generative AI tends to boost STEM and healthcare employment in metro hubs like Atlanta but risks automating roles in customer service and administration, especially in rural regions (GSU's regional AI workforce impact brief).

While Atlanta's approach centers on transparent oversight and worker protections, experts nationwide warn that poorly implemented AI in government can foster inequities and flawed decisions - a New York chatbot, for example, gave landlords incorrect legal guidance and risked discrimination.

As the commission continues its work through early 2026, Ron Pierce, president of Trinity Solutions, Inc., emphasized,

“This tool isn't going to go away. And there's no need to bury our heads in the sand on this. It's all right. If it's here, let's figure out how we can actually leverage it. So, I think it's a good start.”

For a national perspective on the risks of artificial intelligence replacing critical government oversight, see this investigative feature on the pitfalls of automated public service.

Atlanta has rapidly ascended to become the nation's second-largest data center market, surpassing Northern Virginia in 2024 by recording an unprecedented 705.8 megawatts (MW) of net absorption - nearly 39 times its 2023 total - and a 222% increase in total inventory, driven by surging demand for AI computing and hyperscale cloud applications.

The city's robust growth is underpinned by abundant, affordable energy - including nuclear and natural gas sources - a favorable regulatory environment, and major investments, with AWS and Amazon alone pledging at least $11 billion to expand regional capacity.

However, this explosive growth strains Atlanta's infrastructure, sparks concerns about rising electricity demands, and prompts legislative action to ensure the costs to power these energy-intensive facilities do not spill over to residential consumers, leading local governments to impose moratoriums on new projects while considering the impact on resources and communities.

As Atlanta outpaces competitors in data center construction and preleased space, the vacancy rate in primary U.S. markets has hit a record low of 1.9%. According to a CBRE market report on data center absorption, the volume under construction reached 2,159.3 MW in Atlanta, second only to Northern Virginia and leading all other North American markets.

Major industry developers - from Prologis to T5 Data Centers - are rapidly expanding in the metro area, fueling concerns about energy security and consumer rates detailed in this investigation of Atlanta's unprecedented data center growth.

To contextualize where Atlanta stands nationwide, the following table compares the top U.S. data center markets by under-construction capacity and total inventory:

Market	Under Construction (MW)	Total Inventory (MW)
Northern Virginia	2,672.5	2,930.1
Atlanta	2,159.3	1,000.4
Dallas-Fort Worth	605.6	591.0
Phoenix	176.0	602.8

“Atlanta has emerged as a prime destination for new data center construction thanks to its business-friendly environment and strong, reliable power infrastructure. With demand surging and new construction facing longer lead times, the industry is strategically focused on densifying existing data centers to rapidly expand capacity.” - Mike Lash, Senior Vice President, Data Center Solutions, CBRE

Read more about Atlanta's rise and the broader strain on power grids and community resources at Bisnow's coverage of the Atlanta data center boom.

Georgia lawmakers and regulators are actively responding to the dramatic impact of the state's data center boom on electricity demand and customer bills. Georgia Power projects it will need up to 9,000 megawatts of new capacity by 2031 - 80% of which is expected to be consumed by data centers - sparking concerns about rising rates and reliance on fossil fuels.

Staff at the Georgia Public Service Commission (PSC) and clean energy advocates have challenged the utility's demand forecasts as overstated, warning that overbuilding could shift undue costs onto residents and small businesses.

New rules now require data centers drawing over 100 megawatts to cover their full infrastructure costs through long-term contracts and upfront collateral, aiming to shield ratepayers from extra charges.

The following table summarizes key data:

Item	Data
Capacity Requested by Georgia Power	9,000 MW by 2031
Projected Data Center Share of New Load	80%
PSC Vote on Georgia Power Plan	July 15, 2025
Recent Rate Increase (since 2023)	$43/month avg.
Planned Coal Plant Retirements	Bowen: 2035; Scherer Unit 3: 2038

While some legislative efforts sought to further insulate residents from data center-driven costs, others argue existing PSC rules suffice, though critics describe loopholes and the risk of higher bills amid storm recovery expenses and infrastructure upgrades.

Georgia Power's resource plan faces intense scrutiny ahead of a July PSC vote, with State Senate debate and consumer advocates urging more accountability.

For residents, proposed agreements could freeze base rates for three years, but critics like the Southern Environmental Law Center caution,

“Bills for residential and small business customers will rise under this agreement.”

For a comprehensive local perspective, see coverage of the pending rate freeze and storm cost impacts.

Kinaxis, a global leader in supply chain orchestration, has partnered with Georgia Tech's NSF AI Institute for Advances in Optimization (AI4OPT) to accelerate the deployment of scalable AI solutions for increasingly complex global supply chains.

Through joint research, real-world applications, internships, and thought leadership, the collaboration aims to bridge the gap between academic innovation and industry implementation, leveraging Kinaxis' Maestro™ platform and Georgia Tech's interdisciplinary AI expertise.

Recent advancements include the PROPEL tool, validated with Kinaxis supply chain data, which achieved an 88% reduction in planning time and a 60% improvement in solution accuracy compared to conventional methods - demonstrating industry-leading performance for large-scale manufacturing, electronics, and pharmaceutical networks.

As Pascal Van Hentenryck, director of AI4OPT at Georgia Tech, noted,

“By combining supervised and reinforcement learning, we can make near-optimal industrial-scale decisions, an order of magnitude faster.”

This partnership not only delivers innovative technology but also invests in talent development, supporting student internships and knowledge sharing for the next generation of supply chain leaders.

For more details on this initiative, read the official partnership announcement from Georgia Tech's newsroom announcement on Kinaxis and AI4OPT partnership; discover how PROPEL is reshaping manufacturing strategies via the AI4OPT project page on AI-powered supply chain planning tool PROPEL; and explore additional industry context in AI Business's analysis of Georgia Tech's supply chain transformation with AI.

Georgia Tech's fifth annual Klaus Startup Challenge has emerged as a dynamic engine for AI-powered entrepreneurship, drawing over 200 students and awarding $750,000 in startup funding to innovative teams from the College of Computing.

The competition, structured in three rigorous rounds from February to April, culminated with five standout teams each securing a $150,000 investment - funded by Fusen, the accelerator founded by alumnus Christopher W. Klaus - to launch their ventures in fields ranging from food tech to cybersecurity and social media for readers.

This year's winners include DDingDong, which leverages advanced technology to help restaurants and diners connect with personalized promotions; AerLock, which deploys real-time AI defense against malware; Chemetrian, an AI platform that streamlines complex molecular science workflows; Loandock, for automating the mortgage process; and Shelfmates, offering a curated book discovery network.

Reflecting on the significance of early-stage support, Sunny Park, co-founder of DDingDong, said,

“What started as a spark of an idea just three months ago has now grown into a real product, a real team, and a real company... Your belief in our idea gave us the confidence to keep building.”

In addition to financial backing, the challenge provides structured mentorship and a peer-driven entrepreneurial community within Atlanta's rapidly expanding tech ecosystem.

Startup	Sector	Product/Focus
DDingDong	Food & Beverage	Personalized restaurant-diner platform
AerLock	Cybersecurity	AI malware defense
Chemetrian	Molecular Science	AI for computational science workflows
Loandock	Mortgage	AI-driven loan process automation
Shelfmates	Social Media	Personalized book discovery & sharing

Discover more about the competition's impact on student founders at the Klaus Startup Challenge showcase, how Fusen supports emerging entrepreneurs on its dedicated program page, and explore the event's structure and opportunities via Georgia Tech's College of Computing overview.

Atlanta's tech scene just saw a major milestone with the launch of Cove Architecture, the city's first full-service architecture studio powered entirely by artificial intelligence.

Developed over more than a decade with $25 million in R&D, Cove's two-part AI framework - Vitras.ai and ARK_BIM - enables teams to design and deliver buildings faster, reduce risks, and enhance sustainability outcomes.

Their inaugural project, a 15-unit multifamily complex in Atlanta's West End, was completed in just 15 days, achieving a 60% reduction in design timelines, 95% accuracy in early-stage cost estimation, and a 40% decrease in design iteration costs.

These impressive results are detailed in an in-depth interview with Cove's co-founders, who emphasize that AI handles complex data and compliance, allowing human designers to focus on creativity and high-quality outcomes.

As CEO Sandeep Ahuja put it,

“We started by building software for others to optimize costs, compress timelines, and meet performance standards. Using our technology end-to-end allows us to guide projects from concept to completion.”

The impact of Cove's pioneering approach is further discussed in this Bisnow exclusive on the AI-driven disruption of architecture.

For a quick overview of Cove Architecture's achievements, see the table below:

Project Metric	Result
Design Timeline Reduction	60%
Cost Estimation Accuracy	95%
Design Iteration Expense Reduction	40%

Atlanta's reputation as a national leader in smart security technology is bolstered this month by ScanTech AI Systems, which will spotlight its cutting-edge AI-driven screening and threat detection at the upcoming 10th Annual Smart Airport Conference & Exposition in Atlanta.

The company, traded on Nasdaq as STAI, has rapidly expanded deployments of its proprietary “fixed-gantry” CT scanning systems across airports and other high-security facilities, harnessing artificial intelligence to swiftly and accurately detect hazardous materials and contraband while reducing operational downtime and costs.

CEO Dolan Falconer's recent recognition as the 2025 Dealmaker of the Year underscores ScanTech's market momentum and strategic execution:

“Being named Dealmaker of the Year is a tremendous honor. This award reflects the commitment of our leadership team, the strength of our technology, and the resilience of our capital strategy. Our trajectory is clear: we are focused on building one of the most trusted AI-driven security platforms in the world.”

Recent operational highlights include successful TSA testing at major airports and a contract boosting shares by over 55% after equipping the Virginia Department of Corrections with Sentinel CT scanners, as noted in ScanTech AI's latest stock update.

The company's technology enables rapid scanning - allowing liquids and electronics to remain in bags - while minimizing human error and maintenance. As ScanTech's leadership prepares for a showcase at the Atlanta conference, their innovations exemplify how AI is transforming security operations.

Learn more about the company's vision and AI-powered solutions via the official ScanTech AI investor relations page and recent developments reported in the official press announcement for the Smart Airport Expo.

Atlanta is making significant strides towards becoming the "Capital of Applied AI," with public-private partnerships at the heart of this transformation. Recent reports from Atlanta tech leaders highlight how the city leverages its deep reservoir of AI talent - fueled by Georgia Tech and other local universities - and strong support from both corporate giants and civic organizations to catalyze AI-driven business and public service innovation.

Major initiatives like the inaugural AtlAI Summit aim to unify stakeholders and set city-wide standards for practical AI applications, moving well beyond theoretical research.

Meanwhile, events such as Atlanta AI Week and the AI+IM Global Summit convene business leaders, policymakers, and educators, offering workshops focused on areas like workflow automation, inclusive AI governance, and ethical data management.

With focused government leadership - exemplified by Mayor Andre Dickens' AI Commission and the city's AI Ethics Council - Atlanta is positioned to balance rapid progress with inclusive benefit and policy foresight.

As summarized by local tech advisors:

“This is the moment to seize the AI leadership role. The goal: Launch the inaugural AtlAI Summit to shape the future of Applied AI.”

For a deep dive into how collaborations between universities, Fortune 500s, and civic organizations establish Atlanta's unique edge, see the comprehensive Contributor Report on Atlanta's Applied AI ecosystem.

The University of Georgia (UGA) is accelerating its efforts to welcome transfer students by implementing artificial intelligence to streamline the processing of transcripts.

Facing an annual influx of approximately 25,000 transcripts containing hundreds of thousands of courses, UGA's Office of Admissions adopted an AI-driven tool combining intelligent character recognition and machine learning, enabling transcript processing speeds to double since its launch in March 2025.

This technology directly translates transcript data into the university's information system, allowing the admissions team to focus on supporting students' unique circumstances.

According to Vice Provost of Enrollment Management Andy Borst, most transfer students are Georgia residents and twice as likely to be first-generation college students, making efficient support a key element of UGA's Strategic Enrollment Management Plan 2024-2028.

Upholding a commitment to quality, Senior Associate Director Seth Filkins emphasized that every transcript remains subject to human review:

“This tool is simply here for support,” said Filkins. “It will enable a quicker turnaround time and allow our team to focus on responding to students' unique questions and situations.”

The new system forms part of an evolving landscape where AI is increasingly leveraged by higher education institutions nationwide for managing large volumes of administrative data, as explained in the broader context of AI-assisted college admissions.

Looking ahead, UGA plans to introduce an AI chatbot to accompany its Transfer Equivalency Search, empowering students to track their application progress and pre-evaluate how their courses align with UGA programs.

For more on UGA's modernization of transfer admissions, visit the university's official release on streamlined transcript processing and a local perspective from WUGA's coverage of AI in transfer applications.

A wave of student opposition has swept across Georgia's universities as commencement ceremonies embrace artificial intelligence to announce graduate names - a technological shift led by companies like Tassel, which powers name readings using synthetic voices trained on vast phonetic databases.

At the University of North Georgia (UNG), an online petition attracted over 2,000 signatures, with students voicing that AI diminishes the emotional significance of graduation and erodes long-standing, person-to-person traditions.

As reported by FOX 5 Atlanta coverage of UNG students opposing AI name announcements, many graduates feel the automated process is “almost demeaning to the hard work” invested, despite campus assurances that skilled voiceover artists enable accurate, inclusive, and accessible recognition across all ceremony media.

The debate has echoes far beyond UNG: AI solutions for name pronunciation are now routine at the University of Georgia, Georgia Tech, and Kennesaw State, fueling calls of institutional hypocrisy since these same colleges restrict student use of AI for coursework.

According to data summarized by Yahoo News report on Georgia colleges restricting AI in classwork, Tassel's technology maintains a database for over 100,000 names and allows for graduate-submitted corrections or recordings, yet that hasn't quelled dissent from those who see such automation as sacrificing human connection for efficiency.

As detailed by the Change.org petition to stop AI speaker use at UNG graduation, “Graduation is so much more than just another school event...

It is a celebration of each student's success... What UNG plans to do does not represent how a university should handle recognizing their graduating students.” This pushback is a vivid reminder of the challenge universities face in balancing digital innovation with the intangible value of tradition and community.

Atlanta's tech growth is accelerating, presenting both exciting opportunities and important responsibilities for the region's evolving innovation landscape. Major investments like Mercedes-Benz's expansion are expected to bring up to 500 high-quality jobs to metro Atlanta by next year, supported by a multimillion-dollar R&D hub and deeper collaboration with local talent pipelines such as Georgia Tech.

As Jason Hoff, the new CEO of Mercedes-Benz North America, put it:

“Bringing our teams closer together will enable us to be more agile, increase speed to market and ensure the best customer experience.”

Efforts to make the tech ecosystem more equitable and sustainable are also underway, with events like the 2025 State of the Atlanta Black Tech Ecosystem Summit driving dialogue on economic mobility and access, and organizations honoring the contributions of visionary leaders who built Atlanta's innovation economy, such as Sig Mosley.

Startups in Atlanta are adapting to changing hiring trends, with the median time to first full-time hire now reaching 284 days since incorporation - a 32% increase since 2019, as noted in Thompson Hine's May 2025 New Ventures Update.

The table below summarizes recent milestones for Mercedes-Benz in Atlanta:

Year	Milestone
2018	Relocated U.S. HQ to Sandy Springs
2018	Launched innovation hub Lab1886
2025	Announced R&D hub, 500 new jobs

Learn more about the growth and innovation from Mercedes-Benz in Atlanta at Global Atlanta's latest coverage of Mercedes-Benz's tech hub expansion.

As Atlanta continues to rise as a Southeast tech capital, its stakeholders must focus on fostering inclusivity, workforce development, and responsible job creation to ensure sustainable prosperity for all.