OpenAI announces plans to open a data center in Effingham County
OpenAI announced plans for a $20 billion data center in Effingham County, Georgia, projecting 400 jobs and significant tax revenue. The project involves a substantial power agreement with Georgia Power, including a unique demand response program to protect electricity rates and grid stability. While local officials support the development, some community groups plan to express their thoughts on the announcement.
OpenAI has announced plans to establish a new data center in Effingham County, Georgia, within the Savannah Gateway Industrial Hub near Rincon. This $20 billion capital investment is poised to be one of the largest private developments in coastal Georgia's history, projecting the creation of 400 long-term, high-quality jobs and a significant increase in the local tax base. OpenAI's Chief Global Affairs Officer, Chris Lehane, cited Georgia's dynamic environment and Effingham County's strategic location and future workforce as key factors in their decision, highlighting lessons learned from previous data center projects in Texas and Michigan.
The facility is expected to require approximately 3,200 megawatts of power, with Georgia Power confirming its collaboration to provide services. A notable aspect of the agreement includes OpenAI's commitment to provide up to 1,000 MW of flexible demand response. This arrangement will allow Georgia Power to reduce energy delivery to the facility during peak times, aiming to enhance grid stability, reduce the need for new generation resources, and protect residential and small business customers from increased electricity rates. OpenAI also pledged to invest $80 million directly into the county for community priorities and committed to safeguarding the local water supply.
Local government bodies, including the Effingham County Industrial Development Authority, the Effingham County Board of Commissioners, and the Effingham County School District, expressed strong support for the project. ECIDA CEO Brandt Herndon and School Superintendent Dr. Yancy Ford lauded the potential for tax revenue, job creation, and infrastructure improvements, with projections of a 40% reduction in property taxes for homeowners. However, the Effingham County Democrats and Savannah Indivisible announced a forthcoming press conference to share their perspectives on the development following a public open house event.