Georgia Power’s promise to freeze electricity rates through 2028 was front and center Thursday as President Donald Trump touted the administration’s efforts to shield customers from the cost of power-hungry data centers.
The pledge builds on an agreement between the White House and seven of the largest tech companies, which said they would pay for electricity costs in areas where they are building data centers, which are large computer-filled warehouses that need unprecedented amounts of electricity to operate. More than 220 state governors, utilities, electric cooperatives, data center operators and other entities have signed on, according to the White House.
“Southern Company’s Georgia Power has frozen base rates for households until 2029 … is anybody here from Georgia Power? A certain governor is here,” Trump said at an event at the Environmental Protection Agency in Washington, pausing for applause. “Congratulations, great job.”
Georgia Power has frozen base rates through the end of 2028 and has agreed that rates in its next agreement — set to be proposed in 2028 — will be $8.50 a month lower for customers than they otherwise would have been.
Credit: AP Photo/Alex Brandon
Credit: AP Photo/Alex Brandon
Chris Womack, CEO of Southern Co., which owns Georgia Power and other electric companies in the Southeast, was seated at the far end of a table with Trump at the center.
Also at the table was Georgia Gov. Brian Kemp, who the president has repeatedly slammed for refusing to bow to his requests to overturn Georgia’s voting results in the 2020 election.
On Thursday, Trump praised Kemp instead.
“That’s a great job, I’ve heard about it. Congratulations to both. It’s fantastic,” Trump said. Kemp was one of several Republican governors at the event.
Trump claimed revenue from Google’s data center construction had enabled Georgia to eliminate property taxes entirely, presenting it as a model for how states can benefit from data centers. But Georgia has not eliminated property taxes.
The president did get to the heart of why economic and business leaders, particularly power companies, would want to have a steady pipeline of data centers in their state.
“If it doesn’t go to you, and it doesn’t go to Georgia, as an example, it’s going to go someplace else, and those people are happy to get them — smart people,” Trump said.
The announcement comes amid a series of pivotal events that could have serious implications for the future of data centers in the United States and in Georgia, one of the hottest markets for the developments and showing no signs of slowing.
Credit: Hyosub Shin/AJC
Credit: Hyosub Shin/AJC
What’s more, the backlash from consumers and elected officials against data centers is growing over concerns of rising electricity bills, land and water usage and the economic sustainability of the artificial intelligence industry. It has also become a key flashpoint in the midterm elections.
In Georgia, Wall Street is laser-focused on the two down-ballot races that arguably could decide the future of Georgia’s electricity bills, energy mix and data center growth. Two of the five seats on the state Public Service Commission, which regulates Georgia Power, are on the ballot in November.
Democrats flipped two seats on the all-GOP panel last year in what was considered a referendum on ballooning power bills. One of those Democrats must run again, and a second seat is open.
Credit: abbey.cutrer@ajc.com
Credit: abbey.cutrer@ajc.com
Analysts from the investment banking firm Jefferies downgraded Southern’s stock to “hold” from a “buy” after last year’s election and in a June 22 report said they will keep it there for a while, largely because the outcome of the upcoming PSC election is unclear.
The report noted two things: Data center growth has drawn “adverse media attention” and Southern’s electric utilities, which also operate in Alabama and Mississippi, serve customers with below-average incomes, which means a higher percentage of household expenses go toward the power company.
“Taken together, the risk of less-favorable regulation could constrain Southern’s willingness” to adjust its financial forecasts, the report said.
Kemp was one of two governors from the Southeast who remained at the table and spoke after Trump left. The other was Louisiana Gov. Jeff Landry. Kemp said he believes Georgia Power will be able to lower rates even further in the future because of the influx of data centers and other large manufacturers.
Credit: Miguel Martinez-Jimenez
Credit: Miguel Martinez-Jimenez
“We cannot let China win this race, and that’s what some people want in my opinion, and it’s important for us to continue,” he said.
Womack, who also stayed and spoke immediately after Kemp, stressed the importance of utilities investing in the power grid and keeping rates stable for customers.
“We’re in this incredible moment here in this country where we’re going through this technology revolution, and it’s going to be important about how we manage our power resources,” he said.
OpenAI, the company behind the ChatGPT chatbot, said Wednesday it would build a $20 billion data center near Savannah. Georgia Power followed with a news release that said OpenAI would pay the “full infrastructure and electric service costs to serve its facility and will fulfill requirements for long-term energy contracts.”
The company needs roughly 3,200 megawatts of power, which is the equivalent of three nuclear reactors at Georgia Power’s Plant Vogtle in eastern Georgia. Of this, 1,000 megawatts will be what’s known in the utility industry as “flexible demand response.” This means OpenAI will curb its electricity consumption when usage is high statewide, such as during extreme hot or cold days, so the grid is not at risk for brownouts or blackouts.
Georgia Power and the Georgia Chamber separately last week doubled down on their support for data centers, touting among other things jobs, economic security and lower electricity bills for non-data center customers. Both also pointed to what they say is the biggest obstacle to data centers: misinformation.
“We are using data in our daily lives,” said Chris Clark, president and CEO of the Georgia Chamber, in an interview with The Atlanta Journal-Constitution. “It’s the new oil.”
The Chamber on Monday formally started the “Georgia Digital Infrastructure Alliance,” a coalition of business, industry and infrastructure leaders designed to boost support for data centers.
For its part, Georgia Power has formalized its own ratepayer protection pledge, in part because “there are people who are concerned, and they are not believing that they are not paying for data centers,” said Meredith Stone, a company spokesperson, in an interview with the AJC.
Customer bills have gone up six times in three years — adding roughly $43 to a typical monthly bill. Georgia Power is a regulated monopoly and makes its money off building power plants and other expensive infrastructure and then recouping those costs plus a healthy profit from customers.
A note of disclosure
This coverage is supported by a partnership with Green South Foundation and Journalism Funding Partners. You can learn more and support our climate reporting by donating at ajc.com/donate/climate.
About the Author
Keep Reading
The Latest
Featured
