Southeast Georgia power grid projects helping fuel data center development
OpenAI's Project Camellia, a massive data center in Effingham County, Georgia, is driving a substantial expansion of the state's power grid, including new natural gas plants and transmission lines. This infrastructure growth, approved by the Public Service Commission, faces significant environmental concerns and community opposition regarding air quality and potential impacts on ratepayers. Residents and environmental groups are voicing objections during public hearings for related power plant expansions.
OpenAI's Project Camellia, slated to become one of the largest data centers in the U.S. with a power demand of 3,200 megawatts, is a key driver for Georgia's rapid power grid expansion. Located in Effingham County, the project has prompted Georgia Power, a major utility, to undertake extensive infrastructure projects, including new transmission lines and the expansion of natural gas facilities like the McIntosh Combined Cycle Facility.
The Georgia Public Service Commission (PSC) approved a nearly 10-gigawatt expansion of generating capacity in December 2025, with 80% dedicated to meeting data center demand. The PSC also approved updated rules in January 2025, requiring large-load customers like OpenAI to cover full infrastructure and electric service costs and sign long-term energy contracts. Concurrently, the Environmental Protection Division (EPD) is reviewing Georgia Power's air permit application for an additional unit at Plant McIntosh, which was Georgia's fourth-largest carbon dioxide emitter in 2022.
Public opposition to the McIntosh expansion and concerns surrounding the broader data center boom are ongoing. A public hearing in August saw over 30 participants, mostly Effingham County residents and environmental organizations, speaking out against the expansion. Residents, like Sharee McKenzie, expressed fears about increased air pollution and financial burdens on ratepayers. Jennifer Whitfield, a senior attorney at the Southern Environmental Law Center, highlighted the potential for environmental harm, including air pollution and water withdrawals, and criticized the reliance on fossil fuels for expansion.
Experts, including Ahmed Saheed of Georgia Tech, question the speed of Georgia's infrastructure additions and the adequacy of existing regulations to protect ratepayers and the environment. While OpenAI has agreed to provide flexible demand response, allowing Georgia Power to reduce its energy supply during peak times, concerns persist that the state is building massive infrastructure for demand that may not materialize long-term, potentially leaving ratepayers to cover costs for unnecessary capacity.