Savannah Enacts Data Center Moratorium; Chatham County Considers Its Own; Georgia PSC Approves OpenAI Contract for Effingham County Project
The Savannah City Council approved a 155-day temporary moratorium on large-scale data center projects to assess their impact on the city's infrastructure, electrical grid, and water resources. Chatham County is also considering a one-year moratorium. Separately, the Georgia Public Service Commission approved a 25-year contract between Georgia Power and OpenAI for a proposed data center in Effingham County, which could lead to lower statewide electric rates.
The Savannah City Council has unanimously approved a 155-day temporary moratorium on new large-scale data center projects, including the conversion of existing warehouses. This pause, set to expire in late January 2027, will allow city leaders to thoroughly evaluate the potential impacts of such developments on the city's electrical grid, water resources, infrastructure capacity, permanent job creation, and taxpayer burdens. During this period, the council plans to review current zoning ordinances and discuss necessary changes.
Following Savannah's decision, Chatham County Commissioner Dean Kicklighter has proposed a separate one-year moratorium on new data centers within unincorporated Chatham County. County commissioners are scheduled to discuss and potentially act on this proposal.
Meanwhile, the Georgia Public Service Commission has approved a 25-year contract between Georgia Power and OpenAI for a proposed $20 billion data center in Effingham County. Joshua Peacock, a spokesperson for Georgia Power, stated that OpenAI would be responsible for funding the necessary infrastructure, an agreement designed to protect customers from covering these costs if the project doesn't proceed as planned. Peacock added that the additional revenue from large energy users like OpenAI is expected to help lower electric rates for customers statewide, potentially saving them around $200 per year. While this contract approval is a significant step, it does not guarantee the data center will ultimately be built in Effingham County.