Georgia regulators probe data center energy costs
Georgia regulators have launched an investigation into how large power users, specifically data centers, pay for electricity and associated infrastructure costs. The probe aims to ensure residential and small business customers are not unfairly burdened by the energy demands of the growing data center industry. The first hearings for this investigation are set for September.
Georgia regulators are investigating how large power users, particularly data centers, pay for electricity in the state. The probe, initiated by the Georgia Public Service Commission, aims to address concerns that residential and small business customers might be unfairly subsidizing the significant infrastructure costs driven by the energy-intensive data center industry.
Advocacy groups, including Ja’Mae Rooks of Georgia Conservation Voters Education Fund, have applauded the move, emphasizing the need for transparency on who bears the costs of massive electricity demand from data centers. This demand, particularly from "hyperscalers" used for generative AI, has prompted Georgia Power to construct new infrastructure, with the PSC having approved ten gigawatts of new energy capacity predominantly for data centers late last year.
While the commission previously approved new contract terms to ensure large customers cover infrastructure costs, and Georgia Power committed to covering unmaterialized demand, critics argue these measures are insufficient. A key concern is that the current Real-Time Pricing (RTP) system for large customers like data centers may not fully account for all costs, such as fuel for expanded power plants, leaving other Georgians to pay.
The investigation into the RTP methodology was a result of earlier fuel rate proceedings. The commission has now officially commenced the probe, with the first round of hearings slated for September, though it will not include other Georgia utilities.