New Georgia Power rates approved for data centers to address ‘staggering’ energy use

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ATLANTA, Ga. (Atlanta News First) - As Georgia quickly becomes one of large companies’ favorite states for building data centers, the Georgia Public Service Commission (PSC) is changing how those centers will pay for power.

Data centers are notorious for consuming “staggering” amounts of energy, PSC Chairman Jason Shaw said. That’s why the commission unanimously voted to approve new Georgia Power rules for high-energy customers on Thursday.

“By approving this new rule, the PSC is helping ensure that existing Georgia Power customers will be spared additional costs associated with adding these large-load customers to the grid,” Shaw said.

In April 2024, the PSC approved expanding Georgia’s power grid to accommodate the new data centers. But now, customers using more than 100 megawatts of energy — enough to power tens of thousands of homes — will be billed under new terms and conditions separate from the average customer.

The companies will pay for costs related to transmitting and distributing large amounts of power and have a minimum billing requirement, the PSC said. Contract lengths could jump from five years to 15 years, and any contract with a company that reaches the 100-megawatt category must be submitted to the PSC for approval.

PREVIOUS COVERAGE: Your Georgia Power bill will increase in January. State says hike necessary ‘to keep grid going.’

“Our Commission’s action today protects residential and small business customers from data center load financial impacts,” PSC Vice Chairman Tim Echols said. “We want to keep Georgia the best place to do business, but data centers will need to bear the cost of their electricity acquisition.”

Georgia is already home to more than 50 major data centers for large companies, including AT&T, Facebook, Google and UPS. In early January, Amazon Web Services announced it plans to build cloud and AI computing infrastructure in Douglas and Butts counties, an $11 billion investment expected to create at least 550 new jobs.

Meanwhile, regular Georgia Power customers saw a 3.5% bill increase in January. The PSC approved the rate increase in December, following similar increases in 2023 and 2024.

The rises are part of a 2022 agreement between the commission and Georgia Power — a rate hike that the commissioners argue is necessary to keep the grid operational.

“No one wants a rate increase, but in order to keep the grid going, we have to fund it,” Echols said of the newest increase.

The PSC said its 2025 Integrated Resource Plan will address more ways to address data center power usage.