OpenAI has locked in a 25-year power supply deal in Georgia, giving the AI company a long-term electricity pathway for a new project while adding another test for utilities trying to serve data centers without pushing costs onto households.
Southern Company’s Georgia Power unit said it signed the agreement for a project in Effingham County. OpenAI is expected to need about 3,200 megawatts for the facility, a load comparable to several large power plants.
The company has agreed to provide up to 1,000 megawatts back to Georgia Power’s systems during periods of high demand. Georgia Power said the arrangement will improve system reliability.
The deal comes as utilities and technology companies negotiate who pays for the grid upgrades needed to serve AI campuses. Markets are watching the contracts because data center demand is changing planning assumptions for power companies, regulators and large industrial customers.
OpenAI will pay the full infrastructure and electric service costs tied to serving the facility and will meet long-term energy contract requirements. The development adds pressure on other AI companies to show that new data center demand will not land on residential power bills.
OpenAI also plans an $80 million community investment fund for local priorities identified by residents. The company will provide up to $71 million in credits for Codex, its coding agent, for students attending colleges, universities and technical schools across Georgia.
Georgia Power said the project is expected to create thousands of construction and permanent on-site jobs, generate hundreds of millions of dollars in state and local tax revenue, and prioritize local contractors and businesses.
