Executive Summary
Georgia budgets annually on a July–June fiscal year. Governor Kemp signed the $38.5B FY2027 budget in May 2026, a fiscally cautious plan that directs agencies to withhold more than $300M in proposed new spending — a 'disciplined growth' signal sellers should price in. Three structural themes matter for SLG sellers. First, the Georgia Technology Authority (GTA) runs a centralized, security-first technology motion under State CIO Shawnzia Thomas, whose 2026 philosophy is explicitly 'AI Governance Is Security' — NIST controls applied to AI the same as any other system, with every agency required to publish an AI usage plan by Dec 31, 2026. Second, Georgia is deploying ~$1.3B in BEAD broadband funding through GTA, moving from planning into build-out. Third, metro Atlanta is one of the country's largest data-center hubs; a 2026 legislative push to suspend tax exemptions and shift energy costs (SB 410, SB 34, HB 1063) failed when the session ended April 3, leaving Georgia's data-center tax breaks intact — though energy/grid scrutiny and local moratoriums persist. For Dell, the buying motion runs through GTA Direct and statewide contracts, and the security-first culture rewards governed, on-prem and private-cloud AI for sensitive workloads.
- Governed AI adoption as agencies build mandated AI usage plans (due Dec 31, 2026) — lead with private/on-prem AI and NIST-aligned controls for sensitive data.
- Cybersecurity modernization tied to GTA's 'security is security' posture and statewide exercises like Cyber Dawg.
- AI-infrastructure and ISG demand from the metro-Atlanta data-center market and the University System of Georgia's research computing.
- Endpoint, client, and lifecycle refresh across a large, centralized state enterprise under disciplined-growth budgeting.
Dell Action Plan
- Lead with governed, private/on-prem AI as agencies build mandated AI usage plans (due Dec 31, 2026) — map offerings to GTA's NIST-aligned governance framework.
- Package security-first to fit the 'AI Governance Is Security' culture — emphasize access control, audit logging, and data protection, not just capability.
- Validate Dell's GTA Direct coverage and reseller scope, and get into the relevant RFQC pre-qualified pools before pursuing agency deals.
- Tie Dell ISG / AI-infrastructure offerings to the metro-Atlanta data-center market and University System of Georgia research computing — while tracking the 2026 tax/energy policy outcome.
- Engage GTA early on endorsed agency procurements and the Innovation Lab to shape requirements ahead of competition.
Budget & Fiscal
Georgia budgets on an annual July–June fiscal cycle, with an Amended FY (AFY) mid-year adjustment. The General Assembly passed and Governor Kemp signed a $38.5B budget for FY2027 in May 2026 — about 2% (~$738M) above current spending. There is no single 'state IT budget' line; technology spend is distributed across agencies, with GTA providing centralized infrastructure, security, and procurement services and named programs (broadband, AI) funded separately.
- Georgia's fiscal year runs July 1–June 30; figures here are annual unless noted.
- FY2027 is a disciplined-growth budget — >$300M of proposed new spending was held back, so confirm an agency's funded scope before forecasting.
- BEAD is multi-year federal money administered by GTA, not a single-year state appropriation.
- FY2027 (governor's proposed, per NASBO): $32.9B general-fund appropriations and $38.5B state funds; $76.5B total funds. Fiscally cautious — the Revenue Shortfall Reserve sits at $5.6B ('filled') alongside a fourth $1.0B tax rebate and a rate cut to 4.99%.
State funds (state general funds + dedicated state funds), enacted appropriations acts, department section totals Statewide: $37.76B → $38.5B (+2.0%). Top 12 movers of 51 agencies.
| Agency | Prior | Current | Δ $ | Δ % |
|---|---|---|---|---|
| Georgia State Financing and Investment Commission | $715.7M | $0 | −$715.7M | -100.0% |
| Education, Department of | $13.7B | $14.18B | +$480.5M | +3.5% |
| Community Health, Department of | $5.55B | $5.84B | +$290.7M | +5.2% |
| Regents, University System of Georgia Board of | $3.6B | $3.86B | +$256M | +7.1% |
| Transportation, Department of | $2.7B | $2.86B | +$164.6M | +6.1% |
| Human Services, Department of | $1.06B | $1.17B | +$105.9M | +10.0% |
| General Obligation Debt Sinking Fund | $1.07B | $1.13B | +$58.2M | +5.5% |
| Insurance, Office of the Commissioner of | $172.6M | $118.8M | −$53.8M | -31.2% |
| Student Finance Commission, Georgia | $1.39B | $1.43B | +$34.3M | +2.5% |
| Corrections, Department of | $1.7B | $1.73B | +$33.5M | +2.0% |
| Early Care and Learning, Department of (Bright from the Start) | $640.4M | $671.5M | +$31.1M | +4.9% |
| Technical College System of Georgia | $538.3M | $564.1M | +$25.8M | +4.8% |
- FY2027 amounts are department 'State Funds' section totals extracted from the enacted HB 974 bill text; they sum exactly to the act's statewide state-funds total of $38,499,917,737 (~$38.5B).
- FY2026 amounts are 'Section Total - Final / TOTAL STATE FUNDS' from the Conference Committee (final passed) column of the HB 68 tracking document; Gov. Kemp's signing withholdings are not reflected. Sections sum to $37,761,687,325.
- Georgia State Financing and Investment Commission drops to $0 because FY2026 carried $715.7M in one-time cash capital projects that were not repeated in FY2027; bond-funded capital flows through the General Obligation Debt Sinking Fund.
- State Properties Commission is funded entirely with other (non-state) funds in both years, hence $0/$0.
- Georgia also enacts an Amended FY2026 act (HB 973) each session; the prior column here is the ORIGINAL FY2026 act, not as amended.
Source: GA OPB, HB 974 - FY 2027 Appropriations Bill (enacted, House Budget and Research Office PDF) · GA OPB, HB 68 - FY 2026 Appropriations Bill (Senate Budget and Evaluation Office tracking PDF, Conference Committee column)
Initiatives & Policy
Statewide AI Governance Framework5
ScalingGTA's Office of Artificial Intelligence runs a maturing framework: an AI Roadmap and Governance Framework, a Generative AI Responsible Use Standard, a Georgia Board for Artificial Intelligence, and a mandate that every agency publish a detailed AI usage plan by Dec 31, 2026. Governance is treated as security (NIST controls applied to AI). This is an opening for governed, auditable, private/on-prem AI on sensitive data rather than open public models.
'AI Governance Is Security' — Cyber Posture4
ActiveUnder State CIO Shawnzia Thomas, Georgia's 2026 philosophy applies the same NIST controls — access control, audit logging, data protection, oversight — to AI as to any other technology. The state runs large-scale exercises (Cyber Dawg) and a July 2025 Innovation Lab that uses synthetic data only. Security-first culture rewards vendors who lead with controls, not just capability.
BEAD Broadband Build-Out7
ImplementationGTA administers ~$1.3B in federal BEAD funding to close Georgia's digital divide. After an NTIA-mandated restructuring in mid-2025, Georgia's updated final proposal was approved Nov 18, 2025, and the program is moving from planning into implementation. Leftover funds can support workforce, telehealth, cybersecurity, and digital-literacy use cases.
Metro-Atlanta Data-Center Market8
Tax Breaks IntactMetro Atlanta is a top-tier U.S. data-center hub (Microsoft, QTS, CoreSite, DataBank and others). The 2026 session (ended April 3) saw a flood of bills targeting data-center tax exemptions and energy costs (SB 410, SB 34, HB 1063), but none cleared both chambers — Georgia left its data-center sales-tax breaks intact despite an estimated $2.5B in 2026 forgone revenue. The policy cloud has lifted for now, keeping this the strongest Dell AI-infrastructure tailwind in the state, though energy/grid scrutiny and local moratoriums persist.
Procurement & Competition
The Georgia Technology Authority (GTA) is the state's central IT and cybersecurity agency. Most state technology buys run through GTA Direct — a managed-services path that gives agencies, local governments, colleges/universities, and boards of education access to IT services through pre-qualified, market-leading providers. For transactions over $25,000, GTA procurement uses solicitation types (RFQ, RFP, RFQC) prioritized by 'best value,' often establishing pools of pre-qualified contractors. GTA also endorses major agency technology procurements.
| Vehicle / gate | What it means for Dell |
|---|---|
| GTA Direct | Primary managed-services path. Pre-qualified providers; open to state agencies, local gov, higher-ed, and boards of education. Confirm Dell coverage and resellers are current. |
| GTA-endorsed agency procurements | Large agency technology buys require GTA endorsement — engage GTA early to shape requirements. |
| RFQC pre-qualified pools | Request for Qualified Contractors establishes vendor pools; getting into the pool is the gate to compete. |
| AI governance review | Not a contract, but AI/software purchases flow through GTA's AI governance and software-approval process — clear it early. |
| Key buying entity | Role |
|---|---|
| GTA | Central IT, cybersecurity, AI governance, broadband, and statewide procurement — leads the technology motion. |
| Dept. of Administrative Services (DOAS) | Statewide non-IT procurement authority; coordinates with GTA on enterprise buys. |
| University System of Georgia (USG) | 26 institutions; large, semi-independent research-computing and AI-infrastructure buyer. |
| Dept. of Community Health / large agencies | Data-heavy modernization and among the larger agency technology spenders. |
Georgia is a centralized, governance-driven market — GTA's pre-qualified pools and 'best value' model mean incumbents hold position across compute, security, and services. Differentiation comes from NIST-aligned, governed-AI-ready offerings, security-first packaging that fits the 'AI Governance Is Security' culture, and AI-infrastructure capability mapped to the data-center and USG research buyers — not price alone.
Power Structure
| Decision-maker | Why they matter |
|---|---|
| Brian Kemp1 Governor · State of Georgia | Signed the $38.5B FY2027 budget; fiscally disciplined, withheld >$300M in new spending. |
| Shawnzia Thomas4 State CIO & GTA Executive Director · Georgia Technology Authority | Owns statewide tech direction; 2026 philosophy 'AI Governance Is Security.' Re-verified current as of June 2026. Note: Kemp is term-limited and a new administration takes office Jan 2027, so confirm continuity going forward. |
| Steve Hodges16 State CISO · GTA — Office of Information Security | Leads enterprise/GETS information security; re-verified current as of June 2026. Operationalizes the 'security is security' / NIST-applied-to-AI posture. |
| Nikhil Deshpande5 Chief Digital & AI Officer · GTA | Leads digital + AI; GTA's AI office runs the AI roadmap, GenAI Responsible Use Standard, agency AI-plan mandate (due Dec 31, 2026), and the new Darwin AI governance partnership (June 2026). |
| Georgia General Assembly8 Appropriations & legislation · State of Georgia | Sets the annual budget; in the 2026 session (ended April 3) several data-center tax/energy bills failed, leaving exemptions intact. 2026 is an election year — full legislative + gubernatorial transition possible in Jan 2027. |
| University System of Georgia Higher-ed system · USG | 26 institutions; large independent research-computing and AI-infrastructure buyer. |
News & Signals
Sources
- Office of the Governor — Gov. Kemp Signs FY27 Budget
- Office of the Governor — Gov. Kemp Signs FY26 Budget
- GTA — FY2025 Annual State IT Report
- GovTech — Georgia's 2026 Tech Philosophy: 'AI Governance Is Security'
- Georgia Office of Artificial Intelligence — AI Roadmap and Governance Framework
- Georgia Office of Artificial Intelligence — About the Program
- GTA — BEAD Program
- Data Center Dynamics — Georgia Senate passes bill to suspend data center tax exemptions
- GTA — Procurement
- GTA — GTA Direct Services
- NASBO — Summaries of FY2027 Proposed Budgets (June 2026)
- Georgia Watch — Lawmakers leave data center tax breaks intact, punt on energy costs (2026 session)
- Darwin AI — Georgia Lays the Foundation for Responsible AI in State Government with Darwin AI Partnership (June 5, 2026)
- Ballotpedia — Georgia gubernatorial election, 2026
- NTT DATA — NTT DATA to Power Georgia's Next-Gen Digital Government Experience (Mar 3, 2026)
- GTA — Steve Hodges, State CISO / GTA Leadership
- WTOC — OpenAI holds public open house in Effingham County after announcing $20B data center campus (Jul 23, 2026)