Georgia Faces Energy and Water Challenges with Data Center Expansion

News Summary

Georgia is experiencing rapid growth in data center development, raising concerns about energy consumption and water usage. By 2031, data centers are projected to consume 90% of new energy in the state, requiring significant infrastructure expansion. The state has paused reviews of new data center projects and enacted a moratorium on applications, as residents face rising utility costs. Regulatory scrutiny by the Public Service Commission underscores ongoing concerns about the transparency of contracts and the environmental impact of this expansion, exacerbating challenges in energy and water resource management.

ATLANTA – Georgia is facing significant challenges concerning energy and water resources as the state experiences a boom in data center development. The rapid expansion of data centers raises concerns about increased utility costs, potential strains on the energy grid, and water usage as more facilities come online.

In 2022, Georgia Power initiated its first contract proposal for a major data center requiring over 100 megawatts (MW) of energy. Projections indicate that by 2031, data centers in Georgia will consume an astonishing 90% of all new energy generated by Georgia Power. To accommodate this increased energy demand, experts predict that the state needs to build half of its existing energy capacity within the next six years.

Moreover, the cooling processes utilized by these data centers present substantial water usage challenges, consuming up to 5 million gallons of water daily. In response to growing concerns about infrastructure and utility strain, the Georgia Department of Community Affairs paused statewide reviews of data centers in July 2022. In addition, Dekalb County enacted a 100-day moratorium on new applications for data centers, while Monroe County denied a zoning change for a proposed 900-acre data center campus.

Utility Costs and Consumer Impact

As the state continues to accommodate the data center boom, apprehensions arise regarding whether Georgians will shoulder the costs associated with servicing these facilities. Currently, Georgians have witnessed an average increase of $43 per month in utility bills over the past year, amounting to an astonishing total of $516 annually. This increase can be attributed to COVID-19-related fuel price surges and a rate increase proposed by Georgia Power in 2022.

Georgia Power maintains that costs for powering data centers will not influence residential households or small businesses, as data centers are responsible for upfront payments for related infrastructure. However, concerns linger regarding the transparency of contracts with data centers and the plants responsible for supplying energy to them. Contracts requiring over 100 MW must be submitted to the Public Service Commission (PSC) for approval, which has recently scrutinized numerous proposals.

PSC Regulations and Infrastructure Expansion

The PSC monitors Georgia Power’s monopoly and regulates how energy costs are distributed among consumers. It has recently frozen new contracts with major data centers. In April, the PSC permitted Georgia Power to present unexecuted contracts for review with the aim of ensuring protections for existing customers. The approval of these contracts will hinge on assurances that existing customers will not be negatively impacted.

Georgia Power requested an expansion of the grid to accommodate 10,000 MW but was approved for only a 6,000 MW expansion. Approximately 30 energy-generation projects are currently under review by the PSC, with an announcement expected at a public hearing set for December.

Environmental and Regulatory Concerns

Amid the aggressive growth of data centers, concerns about overbuilding in anticipation of demand and outdated infrastructure posing environmental risks have emerged. Advocacy efforts, such as the introduction of Senate Bill 34, which sought to prevent the financial burden from falling on other ratepayers, have not been successful. The financial implications of Georgia Power’s expansion plans could resemble the costs associated with the Vogtle nuclear reactors, which have already experienced significant budget overruns.

Georgia currently has nearly 100 operating data centers, as reported by nonprofit organization Science for Georgia. Recent developments include a 1,000-acre plot acquired by Amazon in Lamar County, currently under evaluation for a potential data center, and the recent approval in Monroe County for the expansion of a 950-acre data center campus.

Future Outlook

As Georgia moves forward with its data center expansion, myriad challenges will need addressing regarding energy, water usage, and transparency in future contracts. The Georgia Cyber Center, established in 2018, represents the state’s commitment to enhancing its cybersecurity capacities and training professionals in related fields. The evolving landscape necessitates careful governance to balance growth and consumer protection while preserving environmental integrity.

Deeper Dive: News & Info About This Topic

• Augusta Chronicle
• Wikipedia: Data center
• Amazon News
• Encyclopedia Britannica: Data Center
• Savannah Now
• Google News: Data Centers Georgia