Georgia Power parent saw profits rise to start 2026, thanks to data centers
Atlanta-based Southern Co., the parent of Georgia Power, saw its profits rise slightly to start 2026 compared with last year, as a surge of energy-hungry data centers into Georgia and neighboring states continues.
Southern — which also owns Alabama Power, Mississippi Power and Atlanta Gas Light, plus other gas distributors and wholesale electricity companies — earned $1.36 billion in the first three months of 2026, up 1.65% compared with the same period last year.
The company said profits were mainly driven by an increase in revenue from its utilities, as Southern reported growth in its electricity sales.
Across the board, Southern’s electricity sales grew 2.3% in the first three months of 2026 compared with the first quarter last year. Much of that was driven by the increased demand for electrons from data centers. Southern’s utilities saw data center electricity sales rise 42% in the first quarter of this year compared with the start of 2025.
Metro Atlanta, home to the bulk of Georgia Power’s customer base, remains one of the country’s hottest destinations for new data centers. As the metro area fills up, new facilities are now increasingly targeting sites in more rural parts of Georgia.
Overall, Southern’s operating revenues climbed to $8.4 billion in the first quarter of this year, up 8% from $7.8 billion in the same period in 2025.
Southern’s President and CEO Chris Womack said the earnings show the company is “delivering on our plans to serve growth in a way that is both beneficial and protective for existing customers.”
“As our region continues to grow, we’re investing in the infrastructure needed to support that growth in a way that provides long-term value while staying grounded in what our customers value most — reliability they can count on and a focus on keeping rates stable,” Womack said in a statement.
The utility giant said earnings were partially offset by interest expenses and a warmer than normal end to winter in its Southeastern service territory.
As is usually the case, Georgia Power was Southern’s most profitable subsidiary, raking in $628 million in the quarter — compared with $596 million between January and the end of March last year.
With the approval of what was then an all-Republican Georgia Public Service Commission, Georgia Power agreed to keep its current base rates steady through 2028.
The utility, meanwhile, is in the midst of a building and spending spree, mainly to serve data centers popping up across Georgia. Last year, the PSC signed off on Georgia Power’s plan to add an unprecedented 10,000 megawatts of new power plants and other resources to its system.
The company has said the expansion will require at least $16 billion in capital investments. The PSC’s public interest advocacy staff and others, however, have estimated that the build-out will cost $50 billion or more over the life of the power plants.
Georgia Power says residential customers won’t see their bills rise to help pay for the new power plants, but critics question those promises.
Earlier this year, the U.S. Department of Energy lent Georgia Power and Alabama Power a total of $26.5 billion — the largest loan in agency history — to help finance their power fleet and grid expansions.
Southern and Georgia Power executives were slated to join DOE leaders Thursday about 60 miles west of Atlanta for a groundbreaking for some of the new gas-burning units and battery energy storage systems the loan will help pay for. The new power resources will be built at Plant Wansley, the site of a now-shuttered Georgia Power coal power plant near Carrollton.
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.
