US utility Georgia Power and the Georgia Public Service Commission (PSC) have submitted a proposal to add up to 10GW of new generation capacity over the next five years.

The $16 billion plan aims to meet surging demand across its footprint from the data center sector, with around 90 percent of the power intended for the sector.

Under the proposal, Georgia Power would be authorized to develop new power plants and expand its generation and storage portfolio. It would include natural gas generation, battery storage, and solar, with the majority in natural gas. If approved, it would represent one of the largest generation expansions in the state's history.

The proposal will require approval from the PSC’s five commissioners, with a vote scheduled on December 19.

The natural gas component of the expansion has engendered opposition within environmental and local pressure groups, who argue it could increase emissions and slow the state's transition to low-carbon energy. Concerns have also been raised over the risk of rate rises, with projections indicating that monthly bills in the state could rise by as much as $20 in the coming years. According to Georgia Power, the reforms would yield positive savings of $8.50 for the typical residential customer.

“It doesn’t mean that in 2029 residential customers will see their bills go down. What it means is that when they do all the various accounting, they promise that if we have a rate case – which we may not – that this class of customers (data centers) will put downward pressure on the costs otherwise attributed to residential customers, which is just a really long, complicated way of saying, ‘we don’t know what’s going to happen,” said Jennifer Whitfield, a senior attorney with the Southern Environmental Law Center.

In response to the concerns, the utility said that revenue from new large-load customers, particularly data centers, would be used to moderate future rate increases.

“Large energy users are paying more so families and small businesses can pay less,” said Kimberly Greene, CEO of Georgia Power.

In 2024, the utility had an energy mix skewed towards fossil generation, with 56 percent of its power generated from fossil fuels. The remaining power was split between nuclear at 29 percent, renewables at eight percent, and hydro at two percent.

Georgia has seen its data center footprint pipeline jump over recent years, with projects that are live, under construction, committed, and early-stage growing from 1.6GW in 2021 to 19GW in 2025. Recent major announcements include an $11bn investment by Amazon into the state in January and the acquisition of 1,000 acres of land in August.

DC Byte attributes this growth to “abundant land, competitive power pricing, and supportive tax structures.”