Anatomy of a secret Coastal Georgia data center deal
OpenAI and Effingham County's development authority secretly negotiated and approved a $20 billion data center deal near Rincon, Georgia, brokered by Georgia Power. The clandestine process, which utilized a codename and limited public notice, has led to public backlash over a lack of transparency and potential impacts, despite officials touting economic benefits like eliminating residential property taxes. The deal involves OpenAI investing $4 billion and creating 80 jobs across five phases, with significant tax abatements.
Effingham County, Georgia, and OpenAI finalized a $20 billion deal for a new data center on a 1,400-acre tract near Rincon, with Georgia Power acting as a key broker. The agreement, signed by the Effingham County Industrial Development Authority and Octans GA LLC (an OpenAI affiliate), commits OpenAI to a $4 billion investment and 80 jobs over five construction phases from 2028 to 2034.
The deal was largely negotiated in secret, raising concerns about transparency and potential violations of Georgia's Open Meetings Act. Officials used a project codename, "Project Gateway," and provided minimal public notice for the crucial vote. Development Authority CEO Brandt Herndon, initially under a non-disclosure agreement, defended the process, citing low public attendance at agency meetings.
Despite the secrecy, county leaders, including Governor Brian Kemp, were involved in discussions. The development authority devised a tax abatement plan, offering OpenAI a 50% discount on property taxes for 15 years, while ensuring the school system's state funding would remain unaffected. Public backlash and skepticism regarding the project's impact on utility prices and the environment have emerged, even as officials anticipate benefits such as the elimination of residential property taxes. Attempts by rural lawmakers to regulate data centers statewide stalled in the legislative session, but the Georgia Public Service Commission approved Georgia Power's expansion plans to serve large energy consumers like data centers.