Georgia Power and PSC Staff Approve Historic $16B Data Center Expansion

Georgia Power, in partnership with the Public Service Commission (PSC) staff, has proposed a significant expansion plan involving the addition of nearly 10,000 megawatts of power capacity. This historic $16 billion initiative aims primarily to accommodate the growing demand from data centers across Georgia.

$16 Billion Data Center Expansion Proposal

The tentative deal, announced recently, allows Georgia Power to construct new power plants and invest in generation resources over the next five years. It is a critical step to cater to the burgeoning needs of data centers, which require substantial energy for their operations.

Key Details of the Expansion

• Total Capacity: Approximately 10,000 megawatts.
• Investment Cost: Estimated at $16 billion.
• Key Components: New power plants, battery storage, and solar energy systems.
• Greenhouse Gas Concerns: Mostly reliant on natural gas, which raises environmental issues.
• Expected Completion: Energy impacts will be felt from 2029 onwards.

The expansion will ultimately double the output of existing power resources, such as the four reactors at Plant Vogtle near Augusta.

Impact on Customers

The PSC’s proposed agreement is not yet final; it requires approval from its five members. If passed, this could lead to Georgia Power charging customers significantly more in future bills. Estimates indicate that monthly electricity bills could rise by up to $20.

Pledges and Protests

In exchange for the expansion, Georgia Power has committed to using additional revenue from data centers to mitigate rate increases for residential customers. This will ensure a measure of “downward pressure” on future bills.

However, critics have expressed skepticism. Environmental advocates caution that the additional reliance on natural gas could exacerbate greenhouse gas emissions. Public protests erupted during the announcement, with activists voicing their concerns about high utility bills and the clandestine nature of negotiations.

Forward-Looking Statements

Georgia Power’s CEO, Kim Greene, emphasized the potential benefits of the expansion for both the utility and its customers. “Large energy users are paying more so families and small businesses can pay less,” Greene stated.

This landmark decision is scheduled for a vote on December 19. As the PSC prepares for its crucial vote, the implications of this move for future energy policy in Georgia hang in the balance.