Georgia Approves 9,885 MW for Data Centers and Makes Georgia Power Carry the Risk

Georgia has approved one of the largest single utility build-outs tied to data centers in the country, with a condition aimed squarely at the fear that the data centers might not show up. On December 19 the Georgia Public Service Commission voted 5-0 to approve a stipulated agreement allowing Georgia Power to add 9,885 MW of new resources. The commission said most of the new energy will serve large new customers such as data centers.

Under the agreement, Georgia Power will financially backstop the new projects in 2029, 2030 and 2031, so that existing customers do not pay if the expected load fails to materialize. Georgia Power's July filing requested certification of more than 3,600 MW of new combined cycle gas generation, more than 3,000 MW of battery storage, 350 MW of batteries paired with solar, and more than 2,800 MW of power purchase agreements, according to the company. The Atlanta Journal-Constitution reported that the decision clears Georgia Power to invest at least $16 billion in new resources, including gas units with lives of at least 45 years.

The settlement answered that by approving all 9,885 MW while requiring Georgia Power to stand behind the new load. Commission Chairman Jason Shaw said the agreement ensures that data centers, or if necessary Georgia Power itself, will pay for the new infrastructure, and that existing customers will not. The company argues that growth in large loads helps spread fixed costs and has made its current three-year base rate freeze possible. The vote came weeks after Georgia voters ousted two Republican commissioners, Fitz Johnson and Tim Echols, in favor of Democrats Alicia Johnson and Peter Hubbard, in races focused on frustration with rising power bills, according to the AJC.

Echols, in one of his final votes, said the decision resolved Georgia's power needs until 2031. The structure answers a question that regulators across the country are asking: who pays if data center demand falls short?