Georgia Confronts Unprecedented Electricity Demand as AI Datacenters Spark Rate and Regulation Fears

October 19,2025


Georgia is facing the largest demand for electricity in its history, driven by a wave of datacenter construction that led the nation last year in the Atlanta metro area. This phenomenon, playing out across the US, has prompted the Georgia Power company to make an unprecedented bid to the state's Public Service Commission (PSC) for about 10 additional gigawatts of energy in the coming years—enough to power 8.3 million homes at an estimated cost of nearly $16 billion. According to Tom Krause, a spokesperson for the PSC, approximately 80% of this massive request is driven by datacenters, primarily those built for artificial intelligence, marking the largest increase ever considered by the commission in a multiyear plan.


The PSC's five members are now charged with deciding how much energy the state needs, when it's needed, and the best way to meet that demand. This pivotal moment has drawn significant public interest, with three days of hearings beginning Tuesday attracting a range of organizations and individuals. Their concerns span from rising utility prices to the accelerating climate crisis, worries that are becoming increasingly common as datacenters expand nationwide. "In many ways, Georgia is a microcosm for the US in terms of the country’s energy future," said Charles Hua of PowerLines, noting the state is facing rising demand and prices mostly due to datacenters.


A "statewide mobilization" by about 20 organizations is promoting attendance at the hearings, channeling what Mark McLaurin of Climate Power described as "an organic outrage at power bills and the stress they place on consumers." He noted that the PSC approved six rate increases sought by Georgia Power in the last two years, a point echoed by Connie Di Cicco of the Georgia Conservation Voters Education Fund, who highlighted that residential customers are charged higher rates than industrial customers. McLaurin also hopes the hearings will focus on developing more renewable energy, pointing out that Georgia Power has announced plans for three new natural gas turbines.


This turn toward fossil fuels is a key concern for environmental advocates. "We’re concerned about the pace of decarbonization and cleaning up the grid – about Georgia Power’s seeming fallback to fossil fuels," said Maggie Shober of the Southern Alliance for Clean Energy, which will provide expert testimony. Shober described the hearings as "a real pivotal moment" and a chance for the PSC to hold the utility accountable, suggesting that datacenters should pay for the cost of generating the additional energy they require.


This sentiment is shared by state senator Chuck Hufstetler, who introduced legislation earlier this year to force datacenters to shoulder more costs and to prohibit the PSC from raising residential utility bills for increased electricity needs. While the PSC has passed a rule to this effect, Hufstetler expressed concern over "secret contracts that the public doesn’t see," emphasizing the need for clarity and fairness. Daniel Blackman, a regional EPA administrator, plans to provide public comment, calling for "bad actor legislation" to provide guardrails on the companies behind the datacenters, which he notes are "already here" and no longer confined to rural areas.


The outcome of these debates could be influenced by the political makeup of the PSC itself. With early voting already underway, progressive Democrats have the opportunity to take two of the five seats in the November 4th election, which would break the commission's all-Republican makeup for the first time in nearly two decades. Observers say this could directly impact how the state supplies electricity to datacenters. "If these seats flip, the commission now includes a diversity of opinion," said McLaurin, who hopes to see a stronger commitment to a diversity of energy sources rather than an outright halt to datacenter growth.


SOURCE theguardian.com

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