Southern Co (SO) Cleared PSC Review for 3.2GW of OpenAI Demand. Can Data Centers Lower Customer Bills Without Raising Grid Risk?

The Georgia Public Service Commission has approved Georgia Power's plan to serve a 3.2 gigawatt OpenAI data center project in Effingham County, Georgia. OpenAI will bear the full cost of infrastructure and electricity service for the facility. According to Georgia Power, other large-load customers' revenue could provide $950 million in annual rate relief starting in 2029, translating to $180 in annual savings for a typical residential customer.

The $950 million estimate relies on the broader large-load portfolio, rather than the OpenAI contract alone. Georgia Power secured financial support for potential new-generation costs if OpenAI commitments do not materialize as expected. The data center agreement includes a commitment from OpenAI to provide up to one gigawatt of flexible demand response, which can help reduce electricity during peak system demand periods.