Georgia regulators approve 50% power capacity boost, betting that massive AI data center demand will eventually materialize

Georgia’s only private electric utility plans to increase power capacity by 50% after state regulators on Friday agreed 5-0 that the plan is needed to meet projected demand from data centers.

It would be one of the biggest build-outs in the U.S. to meet the insatiable electricity demand from developers of artificial intelligence. The construction cost would be $16.3 billion, but staff members say customers will pay $50 billion to $60 billion over coming decades, including interest costs and guaranteed profit for the monopoly utility.

Georgia Power Co. and the Public Service Commission pledge large users will more than pay for their costs, and that spreading fixed costs over more customers, could help significantly cut residents’ power bills beginning in 2029.

“Large energy users are paying more so families and small businesses can pay less, and that’s a great result for Georgians,” Georgia Power CEO Kim Greene said in a statement after the vote.

But opponents say the five elected Republicans on the commission are greenlighting a risky bet by the utility to chase data center customers with existing ratepayers left holding the bag if demand doesn’t materialize.

“The need for 10,000 megawatts of new capacity resources on the system in the next six years isn’t here,” said Bob Sherrier, a lawyer r...