ATLANTA, Ga. (Atlanta News First/WTOC) — State regulators have officially approved a contract for Georgia Power to serve a massive new OpenAI project in Effingham County.

Georgia Power announced Wednesday that the agreement has cleared the Georgia Public Service Commission (PSC) regulatory process. The 3,200-megawatt (MW) project is part of a growing portfolio of “large-load” contracts expected to generate $950 million in annual system savings beginning in 2029.

Because of this growth, Georgia Power says typical residential customers using 1,000 kilowatt-hours per month will see their expected savings increase to about $15 per month ($180 per year) starting in 2029. This is up from a previously projected savings of $102 per year.

“Data centers are coming to Georgia. That is a fact. We’re seeing them in all parts of Georgia, what we need to do at Georgia Power is to be ready to serve that demand,” said Georgia Power spokesperson Matthew Kent.

Under the contract, OpenAI will fully fund the infrastructure needed to support the project. The tech company has also committed up to 1,000 MW of “flexible demand response,” meaning Georgia Power can reduce energy delivered to the facility during times of peak statewide electricity demand.

Kent said Georgia Power is obligated to provide power to businesses in their area, and that this contract approved by the Georgia Public Service Commission will help protect customers from higher rates, by having the data centers pay their share.

“They’re paying mandatory minimums each month, paying for long term contracts, and putting down collateral to back up those contracts and they are paying for the infrastructure that is going to serve them,” said Kent.

“Data centers are paying more so families and small businesses can pay less, and our goal with every contract we sign under this framework is to deliver value for them,” said Kim Greene, chairman, president and CEO of Georgia Power.

But some at the Southern Environmental Law Center have their concerns.

“When you say the data center is paying their costs, which costs are those? And when it comes to something as complicated as an electric grid, there are a lot of ways to look at that,” said Attorney Bob Sherrier.

Sherrier said the contract does provide more protections for consumers, but he still has questions.

“What happens if a data center leaves early? If they’re wrong about wanting to stay in the state a long time,” he said.

Georgia Power said that’s covered in the contract.

“The public service commission has these new contracts they have these stipulations in them. They’re not goals. They’re something that we’re moving forward with,” said Kent.

As the process moves forward, Sherrier said he’s hoping for transparency and that consumers continue to be protected.

“It is trending in the right direction, we think, for protecting people from these extraordinary costs and hope it keeps going that way,” said Sherrier.

This approval follows a base rate freeze approved by the PSC in July 2025 and a rate reduction plan approved in May 2026.

The first phase of the data center in Effingham County should be up and running by 2028.

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