Debate heats up over how to protect Georgians from data center energy costs
Do state utility regulators and Georgia Power already have enough guardrails in place to make sure residential customers don’t see their power bills climb as data centers flock to Georgia?
Or do state legislators need to intervene to make sure the server warehouses pay for all the new power plants and transmission infrastructure planned to meet their voracious electricity demands?
Those questions have dominated energy conversations in the state for the last several years.
This week, they took center stage under Georgia’s Gold Dome, as a state Senate committee weighed legislation some consumer advocates consider the “gold standard” for protecting residential customers from data centers’ energy costs.
The bill, Senate Bill 34, was introduced in 2025 by Sen. Chuck Hufstetler, R-Rome, and is under consideration by the Senate Regulated Industries and Utilities Committee. The legislation passed narrowly out of the same committee last year, but never received a vote from the full Senate.
It’s not the only proposed legislation targeting data centers and power bills. The state House of Representatives has a similar version, House Bill 1063, sponsored by Rep. Brad Thomas, R-Holly Springs. Meanwhile, a flurry of other data center-related bills, dealing with everything from state tax breaks offered to the facilities to transparency about their water and energy use are circulating.
SB 34 got a few minor tweaks since last session, but the bulk of the bill is the same.
It would require that Georgia Power charge data centers for any costs “substantially” related to providing their electricity. The bill would force the utility to make data centers pay for the new power plants, transmission infrastructure, fuel and other costs that were only incurred to serve the facilities.
The stakes are high for Georgia Power and its customers because right now, the utility is in the midst of an unprecedented power fleet and grid expansion that’s overwhelmingly to serve data centers.
The company says the build out will require a $16 billion capital investment, but many estimate the ultimate price tag could reach $60 billion or more over life of the power plants. To meet its projected data center demands, Georgia Power is building new gas-fired power plants, adding new battery storage systems and solar, plus buying electricity from existing power stations.
Some committee members, like Sen. Frank Ginn, R- Danielsville, expressed reservations about the legislature meddling in electricity ratemaking, which is typically the domain of the Georgia Public Service Commission. The PSC sets Georgia Power’s rates, decides what sources it uses to generate electricity, and much more.
But Hufstetler said he disagreed, especially after the results of last year’s PSC elections, which saw Democrats handily defeat Republican incumbents to claim two seats on the commission. Both races were dominated by customers’ concerns about their rising power bills — and fears that data centers could push energy costs even higher, as they have in some states.
“Being blunt, I think at the ballot box in November, they (voters) were upset that they were putting those costs on consumers,” Hufstetler said. “I think it’s one of those things where it’s appropriate for legislators to step in.”
Just as they were last session, Georgia Power and the data center industry said at Tuesday’s hearing they remain opposed to the measure.
Early last year, the PSC approved new billing rules allowing Georgia Power to charge data centers more for their electricity and build in other protections to its contracts with the facilities.
Aaron Mitchell, Georgia Power’s senior vice president for strategic growth, said those rules already ensure data centers pay their fair share “and then some.” Mitchell said other recent moves show the PSC’s existing rules are protecting other customers from data center costs.
“The construct that this body set up many, many years ago for the rates to be set by a team of (PSC) experts … is working in Georgia,” Mitchell said.
He pointed to the PSC’s decision to keep Georgia Power’s current base rates steady through 2028, as well as the $8.50 in “downward pressure” residential customers’ should see on their bills in 2029, as data center electricity sales are expected bring more revenue.
Still, many critics have questioned those promises. “Downward pressure” doesn’t necessarily mean a rate cut or a bill credit is coming. It means the company will propose residential base rates that are $8.50 lower than they otherwise would have been.
Khara Boender, the director of state policy for the Data Center Coalition, echoed many of Mitchell’s points, saying her organization believes the PSC has “already taken steps to address cost allocations.” The coalition counts Google, Meta, Microsoft and other major tech companies and data center developers among its members.
A representative from the PSC said the five-member body had not taken a position on the bill, but delivered remarks he said reflected the views of its Chairman, Jason Shaw.
Tom Bond, the PSC’s director of utilities urged the committee to proceed with caution, “because limiting the ability in the future of the commission to respond to changing circumstances is risky and can have unintended consequences.”
The committee did not vote on the bill Tuesday and its chairman, Sen. Bill Cowsert, R-Athens, did not set another hearing, but indicated there would be more debate about the measure soon.
“I want to invite as much input as possible so that we get it right,” Cowsert said.
About the Author
Drew Kann is a reporter at The Atlanta Journal-Constitution covering climate change and environmental issues. His passion is for stories that capture how humans are responding to a changing environment. He is a proud graduate of the University of Georgia and Northwestern University, and prior to joining the AJC, he held various roles at CNN.
