Georgia PSC Faces Public Ire Over Data Centers in Savannah

Georgia's Public Service Commission (PSC), responsible for regulating the state's largest electric utility's electricity generation and customer rates, convened in Savannah on Tuesday, marking a significant departure from its usual Atlanta meetings. Commissioner Alicia Johnson, a Democrat representing a district that includes Chatham and Effingham counties, championed the move to hold meetings across the state to solicit broader public input beyond the Atlanta metro area. Johnson stated that for over a century, the PSC had predominantly met in Atlanta, rarely venturing elsewhere, and this Savannah meeting offered an opportunity for commissioners to engage directly with constituents outside the capital and hear voices beyond interveners and advocates.

Following a brief administrative session and a presentation on recent PSC actions concerning data centers, including the approval of Georgia Power's contract with OpenAI and the implementation of new customer protections, the floor was opened for public comments. A substantial portion of the public testimony focused on the proposed OpenAI data center in Effingham County, located near Savannah. Residents expressed concerns about the project and demanded greater transparency surrounding Georgia Power's contract with OpenAI. This contract, according to the utility, is the largest single-customer agreement since Georgia Power began reporting such contracts in 2024. Bill Wright of Pooler, a city northwest of Savannah, directly addressed the commissioners, stating, "There’s a reason you’re named the Public Service Commission and not the Georgia Power service commission or the OpenAI service commission. Your name tells you where your loyalty should lie." The commissioners then clarified the extent of their regulatory authority over data centers, emphasizing their oversight of electricity generation and pricing rather than direct control over data center development itself.

The PSC's role in approving Georgia Power's contracts is a critical aspect of its oversight. Georgia Power, a subsidiary of Southern Company, is the primary electric utility in Georgia, serving over 2.7 million customers. The PSC's approval is necessary for major contracts that could impact electricity rates or the utility's infrastructure investments. The recent approval of the OpenAI contract, particularly given its scale, has drawn scrutiny. OpenAI, a leading artificial intelligence research laboratory, has been expanding its infrastructure to support its advanced AI models, which require significant computational power and, consequently, substantial energy consumption. The proposed data center in Effingham County is part of this expansion, raising local concerns about environmental impact, energy demand, and the economic benefits versus the costs to the community.

Commissioner Johnson's initiative to move PSC meetings reflects a broader effort to increase public engagement and accountability in regulatory processes. By holding sessions in different regions, the commission aims to ensure that the concerns of a wider range of citizens are heard and considered in decisions that affect their daily lives and the state's infrastructure development. The public's strong reaction in Savannah highlights the growing tension between the rapid expansion of data centers, driven by the booming AI industry, and the need for sustainable energy practices, transparent utility contracts, and community well-being. The PSC's decisions on future data center projects and utility contracts will be closely watched as Georgia navigates these competing interests.