Georgia Power Seeks Approval to Meet Surge in Demand from Data Centers
Georgia’s energy regulators are currently considering a request from Georgia Power to generate and buy more electricity in order to meet a surge in demand from new businesses in the state, particularly high-tech data centers. State lawmakers are also grappling with the impact of data centers on the state’s energy grid and economic development.
Georgia Power has filed an update to its long-range power plan, known as the Integrated Resource Plan (IRP), in response to the increased demand. The utility is seeking approval to buy electricity from other utilities, build new gas and oil turbines at an existing power plant, and invest in new solar and battery storage projects.
However, during recent hearings before the Georgia Public Service Commission, experts, advocates, and members of the public raised concerns about Georgia Power’s forecast and its plans to meet the growing demand. Critics have questioned the utility’s reliance on traditional fossil fuel sources, such as coal and gas-fired power plants, in its proposed plan.
Larry Heiman of Dunwoody highlighted the need for innovative thinking in addressing the unprecedented situation, rather than relying solely on outdated technology. The increasing demand for electricity from data centers has also raised questions about the potential impact on customer rates, given that Georgia Power rates have already increased four times in the last fourteen months with the approval of the PSC.
The recent hearings marked the second phase of Georgia Power’s IRP update, with expert witnesses for the commission’s staff and various stakeholders providing input on the utility’s proposal. Witnesses challenged the utility’s projections, suggesting that the actual need for additional power capacity may take longer than initially anticipated.
Alternative solutions, such as upgrading transmission lines and implementing distributed solar and battery systems, were proposed as more efficient and cost-effective ways to meet the increased demand for electricity. Concerns were also raised about the environmental and public health implications of continued reliance on fossil fuels for power generation.
A significant portion of the increased electricity demand is attributed to data centers, which have seen rapid growth in Georgia since the introduction of a tax break in 2018. However, a bill currently before the state Senate Finance Committee could suspend the data center tax exemption, leading to uncertainty in the industry and potential challenges in recruiting new businesses.
The Data Center Coalition president, Josh Levi, emphasized the critical role of data centers in modern society and their contribution to economic development. He warned that suspending the tax incentive could deter future investment in the industry, affecting job growth and economic opportunities in the state.
Critics of the bill have expressed concerns about the impact on job growth and economic development in the data center industry, as well as the uncertainty it may create for centers in earlier stages of development. The potential suspension of the tax break could also affect Georgia Power’s forecasting for future electricity demand.
The uncertainty surrounding the future of data center development and the potential suspension of the tax incentive have raised questions about the reliability of Georgia Power’s projections and the need for more sustainable and innovative energy solutions. The PSC is currently evaluating the implications of these developments on the state’s energy grid and economic landscape.
This news coverage has been made possible through a partnership with WABE and Grist, organizations dedicated to sharing stories of climate solutions and promoting a just future.
Georgia Power’s request for more electricity comes under fire – Georgia Recorder
Georgia Power is facing criticism over its request for more electricity from the state’s Public Service Commission. Critics argue that the company is not doing enough to invest in renewable energy sources and is instead relying on outdated and polluting forms of power generation. The debate over Georgia Power’s request highlights the ongoing tension between traditional utilities and advocates for clean energy in the state.
The controversy also raises questions about the future of Georgia’s energy supply and the role of data centers in driving demand for electricity. Data centers, which are key components of the digital economy, require massive amounts of power to operate and cool their servers. As more data centers are built in Georgia, the state’s energy infrastructure will come under increasing strain.
Atlanta data centers, in particular, have been booming in recent years as the city grows its reputation as a tech hub. Companies like Google, Microsoft, and Facebook have all established data centers in the Atlanta area, attracted by the city’s skilled workforce and relatively low energy costs. However, the rapid expansion of data centers in Atlanta has raised concerns about the environmental impact of these facilities and their reliance on carbon-intensive energy sources.
In response to these concerns, some data center operators in Georgia are exploring ways to reduce their carbon footprint and increase their use of renewable energy. For example, Switch, a leading data center provider, has committed to powering its facilities with 100% renewable energy by 2025. Other companies are investing in energy-efficient technologies and exploring partnerships with local utilities to support the development of clean energy projects.
Overall, the debate over Georgia Power’s request for more electricity underscores the complex interplay between data centers, energy demand, and environmental sustainability. As data centers continue to proliferate in Georgia, stakeholders will need to work together to ensure that the state’s energy infrastructure can support this growth in a sustainable and responsible manner.