Georgia Regulators Approve OpenAI Data Center Electricity Contract in Effingham County

Georgia Public Service Commission (PSC) staff have cleared a major regulatory hurdle for OpenAI's planned $20 billion data center in Effingham County by declining to challenge Georgia Power's proposed electricity contract. The joint letter, published Wednesday by attorneys for the PSC and Georgia Power, states the contract adheres to PSC rules established in 2025 for new customers with electricity demands of at least 100 megawatts, primarily data centers. The contract is designed to shield households and most businesses from the costs of serving large electricity users.

PSC Commissioner Peter Hubbard confirmed the July 27 filing pertains to the OpenAI contract. The staff's decision, which is not a full commission vote, reflects a review process that secured additional commitments from Georgia Power. These include tracking revenue from large-load customers, notifying the PSC if a customer leaves early, and agreeing not to ask residential customers to cover shortfalls. Notably, Georgia Power increased its promised benefit, stating that revenue from large-load growth could hold typical residential bills at least $15 a month below what they would otherwise be from 2029 through 2031, up from an earlier $8.50 commitment.

The decision comes amidst a surge in projected electricity demand in Georgia, largely driven by data center development. Effingham County residents have raised concerns about the project's electricity needs and its potential impact on the power grid and customer bills. While the PSC staff's decision allows the electricity contract to proceed, it does not constitute full approval of the entire data center project or resolve broader questions regarding its effects on the power grid.