Data centers push Georgia Power toward natural gas, sparking cost concerns

Georgia Power is embarking on a multi-year, massive expansion at Plant Yates in Newnan, Coweta County, transforming a former 1950s coal power plant into a state-of-the-art natural gas facility. This significant infrastructure project aims to meet the surging energy demand driven by new data centers coming online across the state, nearly doubling the company's potential power production. The expansion involves the installation of three massive Mitsubishi natural gas turbines, which will collectively provide enough energy to power 1.3 million homes. The nearly 10,000 megawatt expansion, which includes new energy production and battery storage, was approved by the Public Service Commission (PSC) last December. However, the project is encountering significant opposition from groups like Georgia Interfaith Power and Light. Marqus Cole, the organizing director for the group, voiced concerns regarding the environmental impacts of a multi-decade investment in natural gas, which he believes will lock Georgia into a future of carbon emissions rather than transitioning to clean energy. Opponents also expressed worries about the potential for future cost increases for consumers, particularly if the actual demand from data centers does not meet Georgia Power's projections. Cole's group is among several that have filed a lawsuit against the Public Service Commission, the elected body responsible for regulating Georgia Power and setting electricity rates, over the approval of this expansion. Critics point to six price increases approved by the PSC since 2022, leading to skepticism among ratepayers. Georgia Power, represented by spokesperson Matthew Kent and Plant Manager Robert Canning, defends the expansion by highlighting the flexibility and reliability natural gas offers for grid resiliency, complementing renewable sources like solar which are also part of the state's energy mix. The utility also states that PSC rules mandate heavy energy users, such as data centers, to be in a special customer pool, requiring them to pay for their power infrastructure costs, which Georgia Power claims will put "downward pressure" on residential customer prices. However, with businesses requesting over 65,000 megawatts of potential energy demand by 2037, the exact future energy needs and cost allocations remain uncertain.