Georgia Power breaks ground on electricity plant to serve data centers

Georgia Power officially broke ground on a significant energy system at Plant Wansley, located on the border of Heard and Carroll counties, aimed at addressing the state's rapidly increasing energy demand driven by the data center industry. The project includes a 500-megawatt battery storage system set to open in 2028 and a roughly 1,500-megawatt combined cycle natural gas plant scheduled for 2029, both replacing an old coal plant site. Kim Greene, CEO and president of Georgia Power, emphasized the necessity of the new infrastructure, stating the company has already secured contracts with data centers totaling over 9,000 megawatts. She assured the public that these large-load customers have protections in place to ensure they cover the costs of these assets and that data centers will contribute to stabilizing power bills for everyday customers, keeping rates lower than they would otherwise be. The project has drawn public concern regarding who will bear the cost of electricity for power-hungry data centers, particularly those planned in Columbia, Richmond, and McDuffie counties. However, the Public Service Commission, which voted in December to allow Georgia Power to add 10 gigawatts of power capacity, has an agreement in place. PSC Chairman Jason Shaw confirmed that this agreement ensures data centers, or Georgia Power itself if necessary, will pay for the new infrastructure, preventing existing customers from incurring the costs. Southern Company officials, the parent company of Georgia Power, noted that the construction phase would employ approximately 1,200 temporary workers, with about 60 permanent Southern Company staff on site. The Department of Energy supports the project with a $26.5 billion federal loan guarantee, the largest of its kind for a non-emergency investment. DOE Deputy Secretary James Danly lauded Georgia's initiative, urging other states to follow suit in investing in their energy grids to support large-load customers for future generations.