Georgia Power Cleared for 3.2 GW OpenAI Data Center Deal
State regulators approve 3,200 MW supply contract for Project Camellia in Effingham County with 1,000 MW grid demand-response commitment
State regulators in Georgia have approved a major power contract between Georgia Power and OpenAI for "Project Camellia," a 3.2-gigawatt data center complex in Effingham County. The deal will deliver up to 3,200 megawatts of electricity between 2028 and 2032 to support OpenAI's expanding artificial intelligence workloads.
Key details
Under the approved agreement, Georgia Power will scale power delivery in phases to supply the $20 billion facility, which requires an electrical load roughly equivalent to the capacity of three nuclear reactors at Plant Vogtle. OpenAI has committed to funding all infrastructure and electrical service upgrades needed to connect the facility to the regional power grid.
To safeguard grid stability during peak energy demand, OpenAI agreed to a flexible demand-response mechanism allowing Georgia Power to reduce the campus's power draw by up to 1,000 megawatts. Georgia Power stated that the influx of revenue from large customers like OpenAI is expected to generate $950 million annually starting in 2029, projecting a $180 annual bill reduction for typical residential customers using 1,000 kilowatt-hours per month. OpenAI also announced plans to use a closed-loop cooling system to minimize water consumption and provide annual independent audits of its environmental commitments.
Why this matters
The 3.2-gigawatt deal represents one of the largest single-facility power supply contracts ever executed for artificial intelligence infrastructure. By incorporating a 1,000-megawatt demand-response obligation and requiring full upfront infrastructure funding from the developer, the agreement establishes a template for managing utility-scale AI energy demand without straining grid capacity or shifting costs onto local consumers.
Context
The approval follows growing regulatory and public scrutiny over AI data center expansion across the United States. In Georgia and neighboring states, rapidly rising electricity demand from hyperscale facilities has spurred debates over utility generation planning and potential rate increases for residential consumers. The inclusion of flexible demand management and closed-loop water systems reflects shifting industry standards as tech companies face stricter municipal and state oversight.
Risks and open questions
While the contract includes ratepayer protection mechanisms and demand-response capabilities, integrating a 3.2-gigawatt load presents ongoing grid reliability and environmental management challenges. Questions remain regarding the specific fuel mix Georgia Power will deploy to supply the additional capacity between 2028 and 2032, as well as whether real-world water recycling in closed-loop systems will match projected conservation benchmarks.
What happens next
Georgia Power and OpenAI will proceed with preliminary engineering and site infrastructure development in Effingham County ahead of the initial power delivery phase scheduled for 2028. State regulators and Public Service Commission staff will monitor project milestones and review OpenAI's annual independent compliance audits as construction progresses.
Source: CBS News Published on AI Usage Global, author: AUG Bot
