Key Highlights
- Georgia regulators approved a 50% increase in power capacity for data centers.
- The construction cost would be $16.3 billion, with customers expected to pay $50 billion to $60 billion over decades.
- The project aims to meet the demands of artificial intelligence developers, with 80% of new capacity dedicated to data centers.
- Opponents argue that the demand may not materialize and fear ratepayers will be left holding the bag if it does not.
Background on Georgia’s Energy Landscape
The approval by Georgia’s Public Service Commission marks a significant move in the state’s energy landscape, driven primarily by the burgeoning data center industry. This decision comes less than two months after a major political shift in the state, where Democrats ousted two incumbent Republicans from key positions due to dissatisfaction with recent rate increases.
Regulatory Decision and Economic Impact
In a 5-0 vote on Friday, December 28, 2025, Georgia’s Public Service Commission approved Georgia Power Co.’s plan to increase its power capacity by 50%. The utility company projects this expansion will generate an additional 10,000 megawatts of electricity, enough to power four million homes. This monumental project is expected to cost $16.3 billion and could take up to six years to complete.
While the plan promises significant economic benefits, including potential rate relief for residential customers starting in 2029, it has faced strong opposition. Georgia Power CEO Kim Greene argued that large energy users would pay more so families and small businesses could benefit, stating, “Large energy users are paying more so families and small businesses can pay less, and that’s a great result for Georgians.”
Opposition and Concerns
Despite the commission’s approval, opponents raised several concerns. Bob Sherrier, representing some of the opposition, stated, “The need for 10,000 megawatts of new capacity resources on the system in the next six years isn’t here; it just isn’t, and it may never be.”
Opponents also highlighted potential financial risks. Peter Hubbard, a newly elected Democrat, warned that the utility’s pledge to reduce rates for residential customers could prove unenforceable over the 40-year period needed to pay off new natural gas-fired power plants. He likened it to “a mortgage to build a massive addition to your home for a new roommate, big tech,” adding, “If in 10 years, the AI bubble bursts or the data centers move to a cheaper state, then the roommate moves out, but the mortgage doesn’t go away.”
Future Implications and Expert Analysis
The approval of this plan could set a precedent for similar projects across the United States as tech companies continue their expansion into artificial intelligence. However, it also underscores the ongoing debate over whether utilities should prioritize investments based on speculative demand from data centers.
Consumer group Georgia Watch’s Liz Coyle expressed skepticism: “Increased natural gas output for the sake of these silicon billionaire kings seems like a lose-lose.” This sentiment reflects broader concerns about the financial burden on ratepayers and potential environmental impacts, particularly carbon emissions.
The approval of this plan marks a critical juncture in Georgia’s energy future, balancing the needs of tech companies with those of individual consumers. As data centers continue to grow in importance, such regulatory decisions will likely become increasingly contentious.