Georgia approves major power grid expansion aimed at data centers

Georgia regulators have approved a plan allowing Georgia Power to significantly expand its electric grid to meet rising demand from data centers.

The Georgia Public Service Commission voted unanimously on Dec. 19 to approve a stipulated agreement with the utility. The decision clears the way for a $15 billion expansion adding nearly 10,000 megawatts of new generation over the next decade.

Georgia Power currently generates between 14,000 and 15,000 megawatts. The planned expansion would equal roughly two-thirds of its existing capacity.

Under the agreement, developers of large data centers must cover capital costs tied to new grid infrastructure. The commission said the provision is intended to protect residential and small business customers if projected demand does not materialize.

The vote followed months of debate and public opposition. Protesters disrupted the meeting and were removed from the chamber before the final vote.

Opponents argued the commission acted before newly elected commissioners take office in January. They also raised concerns about rising electricity costs.

Georgia Power has received approval for six rate increases since 2023. Consumer advocates said those hikes added about $43 per month for the average household.

The commission imposed a moratorium on base rate increases through 2028. However, the freeze does not cover certain storm-related costs, including roughly $860 million in damage from Hurricane Helene.

Critics warned customers could eventually pay for unused infrastructure if data centers close or reduce operations.

Georgia Power told regulators that about 80 percent of the new capacity would serve data centers. The company said the development would support economic growth and technology investment.

Georgia ranks among the top states for data center activity. More than 160 facilities are already operating statewide, with dozens more planned or under construction near Atlanta.

Concerns over water use and energy demand have led several local governments to restrict new data center projects. Atlanta adopted limits on such development in parts of the city in 2024.

The commission approved a future hearing to review whether advocates should gain limited access to confidential financial data underlying Georgia Power’s projections.