Data centers are transforming Georgia Power’s future. What’s the risk?
Georgia Power is undertaking its largest generation capacity expansion in decades, driven almost entirely by the increasing demand from data centers across the state. The Georgia Public Service Commission has approved this expansion but has imposed conditions and warnings regarding potential risks to existing customers. Environmental and consumer advocacy groups have raised concerns about the financial transparency and long-term implications of these commitments.
Georgia Power is embarking on its most significant generation capacity expansion in decades, aiming to nearly double its existing power supply by adding up to 16,000 megawatts. This ambitious growth is primarily fueled by the substantial electricity demand from 32 large-load customers, with at least 26 identified as data centers, according to the company's latest reports.
Environmental groups and consumer advocates, including Bob Sherrier of the Southern Environmental Law Center and Patrick King II of the Natural Resources Defense Council, have voiced strong concerns. They highlight the unprecedented scale of the expansion, the inherent uncertainty in long-term data center demand, and the potential for existing ratepayers to bear the cost of 'stranded assets' if demand projections fall short or data centers relocate. They also point to a lack of transparency regarding the true cost of serving data centers versus residential customers.
The Georgia Public Service Commission (PSC) has approved the expansion plan, including the process to source an additional 2,000 to 6,000 megawatts. However, the PSC attached several conditions, such as requiring Georgia Power to submit an updated long-term resource plan in 2027 and reserving the right to object to new capacity without signed contracts. The PSC also mandated minimum contract terms and termination provisions to protect ratepayers. Despite these measures, advocates argue that Georgia Power retains significant discretion in enforcing these protections, and the rapid pace of approvals without a recent cost-of-service study leaves ratepayers vulnerable. Furthermore, the expansion relies heavily on new natural gas generation, which critics say reverses the trend of decreasing greenhouse gas emissions.