The Georgia Public Service Commission authorized Georgia Power to procure some 9.9 GW of new generation capacity to serve the rapidly expanding AI data center industry.
Georgia Power indicated that data centers will consume roughly 80% of the new power supply.
The expansion includes 3.6 GW of new combined cycle natural gas generation and 3 GW of battery energy storage systems. The utility also plans to procure 350 MW solar including battery storage, and upward of 2.8 GW of power purchase agreements. This represents a 50% increase in capacity for the state’s largest electric utility.
The project involves $16.3 billion in investment to meet what regulators describe as insatiable demand. Staff members estimate the total cost to AI data center clients could reach $50 billion to $60 billion over several decades when including interest and guaranteed profits. The approval enables the utility to bypass standard solicitation processes to expedite construction.
Critics argue the plan places undue risk on consumers if the technology sector’s demand falters. Peter Hubbard, a Democrat elected to join the commission in January, compared the deal to building a home addition for “a new roommate, big tech.” He warned that ratepayers could be liable for the costs if the industry contracts.
“If in 10 years, the AI bubble bursts or the data centers move to a cheaper state, then the roommate moves out, but the mortgage doesn’t go away,” Hubbard said.To mitigate these risks, the Public Service Commission recently updated regulations regarding large-load customers. These rules require potential data center clients to provide greater financial commitments and demonstrate infrastructure readiness. The utility has already filed more than 3 GW of new customer contracts under the stricter criteria.
Header image by Abigail Ducote via Unsplash.
