Georgia Power Refutes Misinformation About Data Centers

Georgia Power officials sought to alleviate mounting public concerns about data centers’ impact on energy availability and consumer costs during a recent Fayette Chamber of Commerce Economic Development Summit, characterizing many circulating claims as misinformation.

Jeff Butterworth, Georgia Power’s area manager for Fayette, Coweta, and Spalding counties, acknowledged the national conversation surrounding data centers but emphasized Georgia’s unique regulatory environment.

“It is hard to pick up a newspaper or turn on the news these days and not hear or see headlines about data centers,” Butterworth told attendees. “The thing seems to be that these data centers are going to cause power shortages and increase customer rates.”

While conceding these concerns may be legitimate in other regions, Butterworth drew a sharp distinction for Georgia’s situation. He credited the state’s legislature and Public Service Commission (PSC) with establishing regulatory frameworks that simultaneously protect consumers, encourage economic growth, and strengthen infrastructure.

“The thing you need to know is that is not in Georgia,” Butterworth stated, referring to potential energy shortages or rate increases attributed to data centers elsewhere in the country.

A key component of Georgia’s regulatory structure, according to Butterworth, is that large energy consumers—including data centers and manufacturing facilities—must bear the full financial responsibility for their energy consumption. This approach is designed to insulate residential customers from absorbing costs generated by industrial-scale users.

“Large energy users, like data centers… pay all the cost that they bring to the electric system,” he explained. “They pay more so that everybody else pays less.”

These arrangements include significant consumer protections, such as long-term contracts, minimum billing requirements regardless of actual usage, substantial early termination penalties, and financial collateral requirements. Butterworth emphasized that these provisions ensure large consumers remain financially responsible even if they “never use a single kilowatt hour.”

Addressing specific concerns about residential rate increases, Butterworth announced that Georgia Power has secured a base rate freeze through 2028 following negotiations with the PSC last year.

“So when you hear their rates are going to go up — our rates are going to go up — that is actually factually false for Georgia Power customers through 2028,” he said.

Beyond the rate freeze, Butterworth noted a separate agreement expected to save typical residential customers at least $102 annually during the three years following 2028. He also revealed that Georgia Power plans to file two proposals with the PSC this month related to fuel costs and hurricane recovery, which collectively should result in “a net lower rate for our customers, starting in June.” These changes would require PSC approval before implementation.

The growing demand for electricity, particularly from data centers and other industrial developments, has prompted Georgia Power to expand its generation capacity. Butterworth indicated the company is adding nearly 10,000 megawatts of new energy production to ensure adequate supply and reliability.

This expansion occurs amid significant technological and economic transformations in Georgia, where data centers have become increasingly controversial. These facilities, which house computer servers and networking equipment for cloud computing and other digital services, require substantial electricity to operate and cool equipment. In some regions of the United States, their rapid proliferation has strained local power grids and raised questions about energy allocation.

Georgia’s approach stands in contrast to areas like Northern Virginia, where data center growth has created infrastructure challenges and community pushback. The state’s regulatory structure appears designed to prevent similar issues by ensuring large users financially support the infrastructure expansions needed to serve them.

Butterworth framed Georgia Power’s dual mission as supporting economic development while protecting residential customers—a balance that has become increasingly important as the state attracts more technology investment.

“For almost a century, Georgia Power has helped the state grow and prosper by locating new businesses to the state,” Butterworth said. “Georgia’s future is bright, and certainly Fayette County is no exception.”

The summit featured various presentations from municipalities and business leaders discussing economic development throughout Fayette County, with additional coverage planned in the coming weeks.