Georgia Power is seeking approval for one of the largest utility build-outs in the U.S. — a proposal to spend more than $15 billion to expand electricity capacity by 50% over the next six years. The driver: an unprecedented wave of data centers tied to the boom in artificial intelligence, cloud computing, and digital infrastructure. But the plan has ignited a contentious debate over who ultimately bears the financial risk if demand projections fail to materialize.

With utility regulators preparing to vote on Dec. 19, Georgia’s energy policy has become one of America’s most politically charged battlegrounds. The decision could influence national debates on rising electricity costs, the economics of AI infrastructure, and how utilities should balance growth opportunities with consumer protection.

A Massive Expansion Fueled by AI and Data Center Growth

Georgia Power says electricity demand in the state is growing at its fastest pace in decades, mirroring a trend seen nationwide. With 10,000 megawatts of new capacity requested — enough to power 4 million homes — the company projects that 80% of this expansion will serve data centers. These facilities, often operated by technology giants such as Amazon, Google, and Meta, consume enormous amounts of energy for computing and cooling as AI adoption accelerates.

The utility argues that acting quickly is essential to secure economic development and meet commitments already in place. “Given the number of companies interested in doing business in Georgia and the amount of customer load with signed contracts or in advanced discussions, it is important to continue moving forward,” company officials testified.

If approved, the expansion would position Georgia as one of the most competitive U.S. hubs for AI infrastructure — a sector facing severe power constraints from Virginia to Texas.

Mounting Political Pressure Over Electricity Costs

The proposal lands at a moment when electricity bills have become a volatile political issue. Georgia voters recently ousted two incumbent Republican utility commissioners, largely over frustrations with repeated rate hikes. Grassroots activists argue that Georgia Power is shifting financial risk from data center operators to households and small businesses.

“What’s happening in Georgia is a perfect microcosm of what’s happening nationwide,” said Charles Hua, executive director of Powerlines, referencing the combination of soaring demand and rising prices.

Opponents fear “corporate welfare” — a scenario where residents subsidize infrastructure for mega-corporations if projected data center growth slows or fails. Similar controversies have already emerged in New Jersey, Virginia, and North Carolina, where governors have questioned whether new rate increases are justified.

Georgia commissioners, who remain GOP-controlled until January, have resisted calls to postpone the vote until newly elected Democrats take office.

The Financial Uncertainty Behind the Build-Out

A central point of contention is the true cost of the expansion — much of which remains under seal as a trade secret. Georgia Power’s disclosed estimates omit borrowing costs and conceal the full price of the previously approved 3,000 MW increase in 2024.

The Public Service Commission’s staff estimates the company will need an additional $3.4 billion in yearly revenue by 2031, potentially raising household bills by $20 per month. Georgia Power disputes this, saying large customers will pay upfront and commit to long-term contracts that shield smaller customers from higher rates.

Staff recommendations would limit new construction to cases where data center customers have already signed binding commitments, covering between 3,100 MW and 7,400 MW. This framework aims to avoid unnecessary investment in natural gas plants — whose costs have soared amid equipment shortages.

Georgia Power argues that such limits would undermine economic development and hinder Georgia’s ability to attract high-value digital infrastructure.

Outlook: A Pivotal Decision for the Future of U.S. Energy Demand

Georgia’s ruling will set a national precedent for how states respond to the explosive energy needs of AI and data centers. If the build-out is approved without safeguards, the state could become a proving ground — or a cautionary tale — for balancing innovation with ratepayer protection.

As the Dec. 19 vote approaches, negotiations may still yield a compromise. But the stakes are clear: Georgia must decide whether to embrace rapid expansion to capture the economic benefits of AI, or adopt a more cautious approach that ensures utility customers are not left absorbing the risks of an uncertain future.