Georgia Regulators Greenlight 50% Power Capacity Boost Amid AI-Fueled Data Center Boom

Georgia regulators on Friday agreed 5-0 to a plan by Georgia Power Co., the state's only private electric utility, to increase power capacity by 50% to meet projected demand from data centers. The massive build-out, which would be one of the biggest in the U.S. to cater to the insatiable electricity demand from developers of artificial intelligence, is estimated to cost $16.3 billion. However, staff members predict that customers will pay between $50 billion and $60 billion over the coming decades, including interest costs and guaranteed profit for the monopoly utility. According to Georgia Power CEO Kim Greene, the plan aims to ensure that large users pay more so that families and small businesses can pay less. "Large energy users are paying more so families and small businesses can pay less, and that's a great result for Georgians," Greene said in a statement after the vote. The Public Service Commission and Georgia Power Co. pledge that spreading fixed costs over more customers will help significantly cut residents' power bills, starting from 2029. The decision was made in response to projected demand from data centers, which are expected to drive the growth of artificial intelligence. AI data centers require massive amounts of electricity to power complex algorithms and computations. The increasing demand for AI data centers is driven by the need for faster and more efficient processing of large amounts of data, which is essential for applications such as natural language processing, computer vision, and predictive analytics. The approval of the plan has been met with mixed reactions. While supporters argue that it will create jobs and stimulate economic growth, opponents claim that it is a risky bet by the utility to chase data center customers, leaving existing ratepayers to bear the costs if demand does not materialize. Critics also point out that the plan may not be viable in the long term, as the demand for AI data centers may not materialize as expected. The Public Service Commission's decision is part of a broader trend of utilities investing in infrastructure to meet the growing demand for data centers. As AI continues to transform industries and revolutionize the way we live and work, the demand for data centers is expected to increase exponentially. The implications of this trend are far-reaching, with potential benefits including improved efficiency, increased productivity, and new economic opportunities. The next step in the process will be for Georgia Power Co. to begin construction on the new power capacity, which is expected to take several years to complete. The company will also need to secure additional funding and approvals from regulatory bodies before the project can move forward. As the demand for AI data centers continues to grow, it remains to be seen whether the plan will be successful in meeting the projected demand and providing benefits to ratepayers.