Georgia Power Proposes $16 Billion Grid Expansion to Meet Surging Data Center Demand
December 11, 2025
Georgia Power, a major US utility, has submitted a landmark $16 billion proposal to the Georgia Public Service Commission (PSC) to dramatically expand its power generation capacity. The plan, one of the largest in the state's history, is a direct response to the unprecedented and accelerating demand from the data center industry, which is reshaping energy infrastructure planning across the nation.
The proposal seeks authorization to add up to 10 gigawatts (GW) of new generation capacity over the next five years. According to the utility, approximately 90 percent of this new power is intended to serve the rapidly growing data center sector within its service territory. The expansion portfolio would be composed primarily of new natural gas generation, supplemented by battery storage and solar energy projects. A pivotal vote by the PSC's five commissioners is scheduled for December 19.
This massive infrastructure push comes as Georgia's data center market has exploded, with its total pipeline—encompassing live, under construction, and planned projects—ballooning from 1.6 GW in 2021 to 19 GW in 2025. Industry analysts attribute this growth to the state's abundant land, competitive power prices, and favorable tax policies. Major investments, such as Amazon's $11 billion commitment announced earlier in the year, underscore the scale of the demand driving this utility proposal.
However, the plan's heavy reliance on natural gas has sparked significant opposition from environmental groups. Critics argue that locking in fossil fuel infrastructure could increase emissions and hinder Georgia's transition to cleaner energy. Concerns have also been raised about potential cost impacts on residential ratepayers, with projections suggesting monthly bills could rise by as much as $20 in the coming years.
In response to these concerns, Georgia Power contends that revenue from new large-scale customers, particularly data centers, will help moderate future rate increases for other customers. “Large energy users are paying more so families and small businesses can pay less,” said Kimberly Greene, CEO of Georgia Power.
Skepticism remains among some stakeholders. Jennifer Whitfield, a senior attorney with the Southern Environmental Law Center, criticized the complexity of the utility's consumer cost projections, stating, “It doesn’t mean that in 2029 residential customers will see their bills go down... this is just a really long, complicated way of saying, ‘we don’t know what’s going to happen.’”
The outcome of the PSC's decision will have profound implications not only for Georgia's energy landscape and economic competitiveness but also as a case study for other regions grappling with the immense power requirements of the digital economy.
Source: datacenterdynamics
