Southern Company unit signs 25-year power deal with OpenAI

Southern Company's subsidiary said on Wednesday it has signed a 25-year power supply agreement with OpenAI for a new project in Effingham County, Georgia.

AI's explosive growth is straining power grids, forcing utilities and tech giants ‌to negotiate ⁠who ⁠bears the cost and risk as data centers balloon in size.

Here are the details:


OpenAI, which is expected to need ​about 3,200 megawatts (MW) of power for its new facility, has agreed to provide up to 1,000 ​MW to the Southern Co ⁠subsidiary Georgia ‌Power's systems in times of ​high demand.

The deal will improve Georgia Power's ⁠system reliability, the unit said.

OpenAI will ​pay the full infrastructure and electric service ​costs to serve its facility and will fulfill requirements for long-term energy contracts.

OpenAI also said it plans to establish a community investment fund worth $80 million to support local priorities ‌identified by residents.

The ChatGPT maker will also provide up to $71 million in ​credits for ​its coding agent, ⁠Codex, for students attending colleges, universities and technical schools across Georgia.

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, Georgia Power said.