Imagine your electricity bill skyrocketing, not because you're using more power, but because massive data centers are sucking up energy to fuel the artificial intelligence revolution. That's the reality Georgia is facing, and it's sparking a heated debate with potentially huge consequences.
Georgia is experiencing an unprecedented surge in electricity demand, driven primarily by the rapid construction of data centers – facilities packed with computers that power everything from your online searches to complex AI algorithms. To meet this demand, Georgia Power, the state's primary electricity provider, has requested permission to generate an additional 10 gigawatts of power. That's enough to power 8.3 million homes! The estimated cost? A staggering $16 billion, according to the Southern Environmental Law Center.
But here's the kicker: a whopping 80% of this new power isn't for homes or local businesses. It's specifically for these data centers, primarily those supporting artificial intelligence, according to Tom Krause, spokesperson for the state’s Public Service Commission (PSC). This request marks the largest increase ever considered by the commission. Atlanta, Georgia, led the entire nation in data center construction last year, a trend that's becoming increasingly common across the United States, and it's not without its critics.
The five members of the PSC are now tasked with making critical decisions: How much energy does Georgia really need? When will it need it? And what's the best way to generate that energy? These decisions will have far-reaching impacts on Georgia's economy, environment, and the pocketbooks of its residents.
Three days of public hearings are underway, attracting a diverse range of organizations and individuals concerned about rising utility prices and the accelerating climate crisis fueled by fossil fuel use. As data centers pop up nationwide, these concerns are echoing in state after state.
Charles Hua, founder of PowerLines, an organization focused on lowering utility bills and increasing community involvement in energy decisions, puts it this way: "In many ways, Georgia is a microcosm for the US in terms of the country’s energy future. Georgia is facing rising energy demand and rising energy prices, mostly due to datacenters."
And this is the part most people miss: the potential for unfair cost distribution.
A coalition of about 20 organizations, including Black Voters Matter and the People’s Campaign, are mobilizing to bring attention to these hearings. Mark McLaurin, state director for Climate Power, notes "There’s an organic outrage at power bills and the stress they place on consumers." He points out that the PSC has already approved six rate increases sought by Georgia Power in the last two years.
Connie Di Cicco, political director for the Georgia Conservation Voters Education Fund, highlights a particularly contentious point: Georgia Power's 2.5 million residential customers are charged higher electricity rates than its industrial customers. "When people find this out, they lose their mind!" she exclaims. This is a prime example of a situation where fairness is being questioned, and it raises the controversial question: Should residential customers subsidize the energy needs of large corporations?
McLaurin sees utility bills as a key to engaging people in the PSC's decisions. His organization is also advocating for the development of more renewable energy sources to meet the growing demand. However, Georgia Power has announced plans to develop three new natural gas turbines.
Maggie Shober, research director for the Southern Alliance for Clean Energy, expresses concern about this reliance on fossil fuels: "We’re concerned about the pace of decarbonization and cleaning up the [energy] grid – about Georgia Power’s seeming fallback to fossil fuels."
Shober's organization is providing expert testimony at the hearings, which she calls "a real pivotal moment." She believes the PSC has an opportunity to hold Georgia Power accountable. While acknowledging the impact of data centers on electricity demand, she emphasizes the importance of monitoring their energy needs closely and ensuring they pay for the cost of generating additional power.
State Senator Chuck Hufstetler has introduced legislation to force data centers to shoulder more of the cost and prevent the PSC from raising utility bills due to increased electricity needs. While the PSC has passed a rule to this effect, Hufstetler argues that without a law, the definition of "costs" remains unclear, pointing to "secret contracts that the public doesn't see." He emphasizes that he doesn't oppose data centers, but believes they should cover their energy and water costs.
Daniel Blackman, a regional administrator for the Environmental Protection Agency, plans to provide public comment at the hearings. He stresses that data centers are no longer a future concern; they are already here and expanding beyond rural areas. He advocates for "bad actor legislation" to provide oversight of the companies behind these facilities.
Blackman also hopes the hearings will empower grassroots organizations to educate people about data centers and their impact on utility bills. He believes this issue will become increasingly important in upcoming elections, starting with the PSC elections in November.
Georgia is one of only 10 states where voters elect utility regulators. If Democrats Alicia Johnson and Peter Hubbard win, the commission would lose its all-Republican makeup for the first time in nearly two decades, potentially influencing how the state supplies electricity to data centers. McLaurin hopes to see "a commitment to a diversity of energy sources" from regulators. Could a shift in the political landscape of the PSC lead to a more sustainable energy future for Georgia, or will the demands of the AI industry continue to dictate the state's energy policy?
What do you think? Should data centers bear the full cost of their energy consumption, even if it means higher prices for the services they provide? Or should the cost be shared, potentially impacting residential utility bills? And what role should renewable energy play in meeting the growing demand for electricity in Georgia and across the nation? Share your thoughts in the comments below!
