Georgia Power Gets Green Light To Dramatically Grow Grid To Draw Data Centers

Authored by John Haughey via The Epoch Times (emphasis ours),

The Georgia Public Service Commission will allow the state’s largest electric utility to proceed with its $15 billion plan to build nearly 10,000 megawatts of new generation—two-thirds of its present capacity—within a decade to accommodate “large load” demand from data centers.

The five-member commission on Dec. 19 unanimously approved a “stipulated agreement” with Georgia Power Company that requires data center developers to pay capital improvement costs related to grid expansion, and that households and small businesses won’t be left with the bill should projected growth not materialize as anticipated.

The decision follows months of contentious debate before the commission, which re-surfaced before the final vote during three hours of laborious discussion on motions filed by advocacy groups questioning the certainty of those assurances, followed by animated public comment dominated by opponents.

Many were ushered out of the commission’s Atlanta chambers, chanting, “Nay, nay, nay! The people say, ‘Nay!’” so the vote could be conducted.

Among opponents’ claims was that the commission, which has until March 2026 to issue its final decision, was proceeding with the vote before two Democrats who defeated incumbent Republicans in a November election could be seated in January.

Many expressed anger over rising electricity costs for Georgia Power’s 2.8 million customers across 155 of the state’s 159 counties. The commission has approved six Georgia Power rate increases since 2023, costing the average household at least $43 a month, or an additional $500 a year, according to the Southern Environmental Law Center, while, at the same time, its profits have increased 40 percent.

In July, the commission imposed a moratorium on Georgia Power rate hikes through 2028, but, as many noted, that freeze only applies to base use charges while exempting “reasonable and prudent” costs it incurred—approximately $860 million—in damage from 2024’s Hurricane Helene that can be “recovered” from customers.

Opponents argued that consumers will eventually be left paying for “stranded assets” in a massive build-out to serve data centers that become obsolete or out of business.

Georgia Power now generates between 14,000 and 15,000 megawatts of electricity, and in 2022, projected it would need 200 to 300 megawatts of grid growth over the next decade.

The 10,000 megawatt expansion—enough electricity to power nine million homes—includes at least 8,500 megawatts between 2029 and 2031. It is the largest projected percentage increase in electricity demand over the next five years in any state nationwide except Texas, according to a November Grid Strategies’ analysis.

The company said in testimony filed with the commission that 80 percent of the projected build-out will serve data center development, which it says will boost state and local economies, and “allow Georgia to contribute to the nation’s focus on the global importance of artificial intelligence and the digital economy.”

According to Florida-based Data Center Map, more than 166 of the nation’s 4,297 data centers are in Georgia—sixth most of any state—with Microsoft, Meta, QTS, and Trammell Crow among hyperscalers operating large-load operations.

But as documented by Baxtel, a data center market tracker, those numbers are poised to dramatically increase—more than 26 data centers are under construction and at least 52 planned within 60 miles of Atlanta.

Not all Georgians are enthused. Concerns over water and energy demands by “server farms” have prompted eight Georgia counties and cities to adopt moratoriums on data center development, including Atlanta, which in September 2024 prohibited data center projects within a 22-mile radius of its Beltline Overlay District.

‘Trade Secrets’

Under its “stipulated agreement” with the commission’s Public Interest Advocacy staff, Georgia Power said it agreed to file its next “rate case” in 2028 “in a manner that will ensure incremental revenue from large-load customers will provide benefits of at least $556 million per year, equivalent to $8.50 per month, or approximately $102 per year, for the typical residential customer using 1,000 kilowatt-hours per month.”

Attorneys Jennifer Whitfield, representing Georgia Interfaith Power & Light and Southface Institute, Blan Holman on behalf of the Southern Renewable Energy Association, and Sierra Club’s Curt Thompson claimed in motions that information used in Georgia Power’s calculations are regarded as “trade secrets” so they cannot be reviewed.

They debated for 90 minutes with Georgia Power attorney Brandon Marco and Public Interest Advocacy attorney Christopher Collado about, among other issues, the distinction between public disclosure of proprietary information and requiring that information be “on the record” for those who sign non-disclosure agreements to review.

“We need to know today what the assumptions are in that financial promise if we’re going to enforce it down the road,” Whitfield said, requesting the commission “order Georgia Power to supplement the record with financial information related to showing its work as to what went into the financial stipulation promise.”

Advocates motioned for hearings on what information was provided to the commission and to ask Georgia Power “clarifying questions.”

Commission Chair Jason Shaw denied two motions but said one has merit.

“I will grant the request to schedule a hearing … to determine whether petitioners should be granted access to trade secret information under an appropriate confidentiality group,” he said.

Shaw said advocates “failed to justify” disclosure or hearings on Georgia Power’s confidential calculations, which Collado confirmed his staff has vetted.

Commissioner Lauren “Bubba” McDonald said anxiety is understandable, but misdirected in targeting the commission when it can only review applications for loads of 100 megawatts or more.

“We do not solicit data centers, they are solicited by the Governor’s Office of Economic Development,” he said. “They are solicited by [developers] coming in looking at Georgia because of the reliability of energy this state provides.”

Ultimately, McDonald said, “local governments are the ones that decide if a data center is going in, not the public service commission. I want that to be clearly understood.”

Commissioner Tim Echols, one of two incumbents defeated in November, said he was proud after serving 15 years on the commission that “my last vote” will provide “the power we need to keep the state moving forward until 2031.”

His biggest disappointment is the slow pace of nuclear development, which, he said, is the best way to generate the electricity needed to power AI development.

Hyperscalers “need to take the financial risk for building out America’s nuclear future because it doesn’t appear it’s going to happen any other way, and I do think they ultimately will,” Echols said. “They’re using the bulk of the power, and I think they should pay the bulk of the cost and take the risk.”