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Georgia PSC Approves 9,885 MW Power Plan Tied to Data Center Boom

Written by Marshall Benveniste | Jan 2, 2026 6:01:00 PM

KEY POINTS

  • The Georgia Public Service Commission approved Georgia Power’s plan to add 9,885 megawatts of new generation to meet rising demand from data centers, with safeguards to protect existing customers from increased costs.

  • The plan includes a $16.3 billion construction investment, marking one of the most significant infrastructure projects in the U.S. This creates a possible pipeline of high-value projects in power generation and grid modernization.

  • Large energy users, like data centers, will cover their share of costs, protecting residents and small businesses from rate hikes while ensuring funding for continued large-scale development.

Regulators Approve Major Power Expansion

Georgia regulators approved a major expansion of the state’s power supply aimed at serving a wave of new data centers while pledging to shield existing customers from higher bills. The Georgia Public Service Commission unanimously approved a stipulated agreement with Georgia Power on December 19, 2025.

The approval allows Georgia Power to add 9,885 megawatts of new generation, backed by financial safeguards if projected data center demand does not fully materialize. The approval represents roughly two-thirds of Georgia Power’s current capacity.

Power Capacity Increase by 50 Percent

For the commercial construction industry, the recent decision by state regulators signals one of the most significant infrastructure build-out possibilities in the United States. Following the unanimous 5-0 vote, Georgia’s primary private electric utility has been cleared to increase its power capacity by 50%.

The massive expansion is explicitly designed to meet the rapidly growing energy demands of data centers and artificial intelligence developers.

Proponents argued that the plan balances the state’s energy needs with environmental considerations, while critics remain concerned about potential cost increases for future ratepayers.

Multi-billion Dollar Construction Investment 

The scale of the undertaking presents a substantial opportunity for construction contractors, developers, and building product manufacturers. The plan involves a direct construction investment of $16.3 billion. This capital injection into the state’s grid infrastructure will likely be accompanied by a stream of complex, high-value projects for the sector.

However, the financial scope extends far beyond the initial build. Officials estimate that over the coming decades, data center customers will pay between $50 billion and $60 billion. This figure accounts for interest costs and the guaranteed profit structure of the utility, highlighting the long-term value of the energy sector assets being created.

What It Means for Nonresidential Construction

With the Georgia Public Service Commission’s approval of Georgia Power’s latest energy roadmap, the nonresidential construction sector can anticipate a wave of power generation and infrastructure projects in Georgia. The regulatory approval opens opportunities for developers, contractors, and business owners to align their projects with the evolving energy landscape.

As the state invests in renewable energy, grid modernization, and the retirement of coal plants, Georgia will likely experience steady infrastructure upgrades. This may include developments such as new transmission projects, expanded grid capacity, and increased integration of decentralized energy resources, which will directly impact commercial and industrial construction.

Cost Allocation and Project Viability

A critical component of the plan is how these costs are distributed, which directly impacts project feasibility for large-scale industrial developers. Georgia Power and the Public Service Commission pledged that the large energy users driving this demand, primarily tech giants and data center operators, will cover more than their share of the costs.

The strategy aims to spread fixed costs across a wider customer base. If successful, this approach could significantly reduce power bills for residents and smaller businesses starting in 2029, according to officials. This cost structure is designed to protect the broader economy while facilitating industrial growth.

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

Adapting to a Changing Energy Landscape

As Georgia’s energy system evolves, staying proactive is essential. Monitoring infrastructure progress enables construction professionals to capitalize on opportunities, anticipate regulatory changes, and deliver projects that align with a modern energy grid.

The planned and ongoing initiatives will likely shape the market for years to come. By embracing these changes and applying forward-thinking strategies, contractors and businesses can create future-ready, resilient spaces that support Georgia’s commitment to reliable, sustainable energy.

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