Georgia Power Seeks $15B+ Expansion to Power Data Center Boom — Regulators Weigh Risk to Consumers

Georgia Power Seeks Major Capacity Expansion Amid Data Center Surge

Atlanta-based Georgia Power has asked state regulators for permission to spend more than $15 billion to increase its electricity capacity by roughly 50% over the next six years to serve a wave of data centers. The utility — the largest subsidiary of Southern Co. — says the build-out would support economic growth and position Georgia as a national hub for artificial intelligence and digital infrastructure.

What the Company Proposes

Georgia Power has requested roughly 10,000 megawatts (MW) of new capacity — in addition to 3,000 MW approved earlier in 2024 — and says about 80% of the new demand would come from data centers. The company states the roughly $15 billion figure covers construction costs for about 80% of the current 10,000 MW request but excludes borrowing costs; portions of its cost estimates remain confidential as trade secrets.

Regulatory And Political Stakes

The Public Service Commission (PSC), composed of five elected commissioners, will vote on the proposal on Dec. 19. That decision comes shortly after voters elected two Democrats to the commission; those winners take office in January. Opponents urged the current commission to delay the vote, but the request was denied. Critics worry the timing could permit a final decision that favors the utility before the newly elected commissioners are seated.

“It would be a slap in the face for the commission to rush through this proposal, and give the power company everything it wants,” said Brionte McCorkle of Georgia Conservation Voters.

Costs, Contracts And Consumer Risk

PSC staff analysts estimate Georgia Power could need an additional $3.4 billion in annual revenue by 2031 to support the expansion — a figure they say could translate to roughly $20 per month for a typical residential customer. Georgia Power disputes that estimate, saying large customers pay upfront, sign long-term contracts and provide financial guarantees to protect residential and small-business customers.

The core regulatory concern is whether Georgia Power will overbuild capacity that data centers ultimately do not use. If the anticipated customers do not materialize, other ratepayers could end up covering costs for underused plants and transmission upgrades.

Staff Recommendation And Industry Response

PSC staff recommended allowing construction only for capacity backed by signed contracts — beginning with an initial threshold of 3,100 MW and capped at 7,400 MW for contracts signed by March 16. Staff said this approach could also avoid approving several expensive proposed natural gas plants. Georgia Power warned that such limits would hamper its ability to attract new data centers, harm economic development and reduce opportunities to lower rates.

What Happens Next

Commissioners may approve the utility's full request, accept a staff-recommended phased approach, or reach a negotiated settlement between the company and staff before the Dec. 19 vote. Opponents say any outcome should prioritize protecting ordinary customers from bearing undue risk or subsidizing large technology companies.

Key facts to watch: the final structure of any contracts, the amount of capacity the PSC approves, how confidential cost estimates are handled, and whether financial guarantees are sufficient to shield other customers.