A subsidiary of Southern Company announced Wednesday that it has reached a 25-year power supply agreement with OpenAI for a new development in Effingham County, Georgia.
The rapid expansion of artificial intelligence technology is putting increasing pressure on electrical grids across the country, pushing utility companies and tech firms to work out agreements over who absorbs the financial burden and risk as data centers continue to grow.
Here is a breakdown of the key details from the agreement:
OpenAI is expected to require roughly 3,200 megawatts of power for its new facility. As part of the deal, the company has agreed to make up to 1,000 megawatts available to the Southern Company subsidiary Georgia Power during periods of peak demand.
Georgia Power said the arrangement will strengthen the reliability of its electrical system. OpenAI will be responsible for covering the full costs of infrastructure and electric service needed to support its facility and will also meet requirements tied to long-term energy contracts.
Beyond the power agreement, OpenAI announced plans to establish an $80 million community investment fund aimed at supporting priorities identified by local residents.
The company, best known as the maker of ChatGPT, has also committed to offering up to $71 million in credits for its coding tool, Codex, to students enrolled at colleges, universities, and technical schools throughout Georgia.
Georgia Power said the project is anticipated to generate thousands of construction and permanent jobs, produce hundreds of millions of dollars in state and local tax revenue, and give preference to contractors and businesses based in the local area.
