‘Strictest contract in data center history’ reached between Georgia Power and OpenAI
Georgia Power and OpenAI have finalized a contract for massive electrical output to power OpenAI's data center operations in Georgia. The Public Service Commission (PSC) approved this agreement, which is described as the "strictest contract in data center history," due to its binding nature and provisions aimed at protecting statewide residents from liability should the project be delayed or canceled.
The Georgia Public Service Commission (PSC) has approved a landmark contract between utility provider Georgia Power and AI company OpenAI for the massive electrical output required by OpenAI's data center operations in Georgia. This agreement, described by Chatham County Commissioner Alicia Johnson as the "strictest contract in data center history," took years of negotiations to finalize.
PSC Utilities Director Tom Bond explained that the contract is unique because of the significant risk faced by both OpenAI and Georgia Power. The agreement is designed to protect residents statewide, ensuring that the amount of money paid and relief given to customers will remain unchanged even if the project, identified as 'PROJECT CAMELLIA', is delayed or canceled. This binding nature means that if OpenAI's operation goes "sideways," Georgia Power may have to absorb the costs or pass them to other large-load customers.
While OpenAI is considered a large-load customer, Georgia Power spokesperson Josh Peacock emphasized that they are simply another client who cannot run their business without the utility's power. The PSC believes the contract is beneficial for residents statewide due to its protective clauses concerning liability and the stability of power costs, despite the immense energy demands of the data center.