Georgia Power Wins Approval to Add 10 GW as AI Data Center Demand Surges

Georgia regulators have approved a plan allowing Georgia Power to move forward with nearly 10 gigawatts of new power generation and storage, marking one of the largest capacity expansions in the U.S. as utilities scramble to meet rising electricity demand tied to data centers and artificial intelligence.

The Georgia Public Service Commission voted 5–0 on Friday to authorize Georgia Power to procure about 9,900 megawatts of new resources, following months of review of the utility’s long-term planning request. The approval clears the company to pursue a mix of natural gas generation, battery storage, solar paired with storage, and power purchase agreements over the coming years.

Georgia is home to several major data center operators for bitcoin mining and high-performance computing, such as CleanSpark (NASDAQ: CLSK) and Core Scientific (NASDAQ: CORZ). Georgia Power

Georgia Power said the expansion is necessary to meet what it describes as “extraordinary” load growth in the state, driven largely by large-scale customers such as data centers. According to reporting by Fortune, the utility estimates roughly 80% of the new capacity would ultimately serve data center demand, with the total buildout large enough to power about 4 million homes.

As part of a stipulated agreement with consumer advocates and commission staff, Georgia Power agreed that revenue from new large-load customers would be used to apply downward pressure on rates after the company’s current base-rate freeze expires in 2028. The company has committed to providing benefits equivalent to at least $556 million per year, or about $8.50 per month for a typical residential customer using 1,000 kilowatt-hours.

Supporters of the plan, including commission staff, argue that spreading fixed system costs across a growing customer base could help limit future bill increases for households and small businesses. Commission Chairman Jason Shaw said the structure shifts much of the downside risk to the utility if projected demand fails to materialize.

Critics, however, warned that the expansion represents a costly gamble on continued data center growth. Opponents cited estimates that while construction costs are about $16.3 billion, customers could ultimately pay $50 billion to $60 billion over decades once financing costs and regulated returns are included. Consumer advocates also questioned whether promised rate relief would be enforceable over the long life of new natural gas plants.

The approval comes amid heightened political scrutiny of electricity costs in Georgia, where voters recently ousted two incumbent Republican commissioners following campaigns focused on past rate increases. Two incoming Democratic commissioners opposed the expansion but will not take office until January.

Georgia Power, the largest subsidiary of Southern Co., serves about 2.7 million customers statewide. The utility said it will continue filing quarterly reports with the commission on large-load growth and demand forecasts. Nearly 30 large-load projects are currently under construction or in advanced planning, and more than 3 gigawatts of new customer contracts have been filed this year under updated rules designed to require stronger financial commitments from prospective customers.