OpenAI Data Center Moves Forward: Power Deal Approved, Site Plan Review Next

The Georgia Public Service Commission (PSC) has approved a power contract between Georgia Power and OpenAI, ensuring the delivery of 3,200 megawatts of electricity for OpenAI's new data center campus in Effingham County, Georgia. This decision, finalized on August 26, is a crucial step for the 1,400-acre "Project Camellia," which is slated to become one of Georgia Power's largest individual customers, requiring enough energy to power approximately three Atlanta-sized cities at full buildout.

Concurrently, the Coastal Regional Commission (CRC) of Georgia released its final Development of Regional Impact (DRI) report, analyzing the project's potential effects on traffic, environment, and public services. The report highlighted significant environmental concerns, particularly that 65% of the site's surface will be impervious, potentially increasing stormwater runoff and pollution in local waterways. Savannah Riverkeeper echoed these concerns, prompting the CRC to advise Effingham County to thoroughly evaluate drainage and flood risks, including FEMA flood-zone designations.

Effingham County Manager Tim Callanan stated that the DRI report's completion was the county's final prerequisite before reviewing the project's preliminary site plan. The Effingham County Board of Commissioners is scheduled to hold a public work session on August 29 in Springfield to discuss the project, with an anticipated preliminary site plan review on September 14. Despite the power contract approval, Georgia Power Communications Lead Joshua Peacock noted that infrastructure development, including substations and transmission lines, is a lengthy process, ensuring the utility has the capacity to serve the facility. Georgia Power Chairman, President and CEO Kim Greene projects the growing portfolio of large-load customers, including OpenAI, will deliver about $950 million in annual savings for utility customers starting in 2029.

PSC Commissioner Peter Hubbard, however, voiced concerns about the transparency and scrutiny of the OpenAI contract, which was largely redacted due to "trade secrets." He emphasized the contract's magnitude, being 32 times the size of typical "large-load" contracts, and pushed for additional protections to prevent costs from shifting to residential and small business customers. Hubbard praised the inclusion of a flexible demand response provision, allowing Georgia Power to reduce electricity delivery during grid stress, a feature he believes should be standard for all data center contracts.