Georgia Power's Crossroads: Data Centers, Coal, and the Climate Divide

The rapid expansion of data centers in Georgia has thrust Georgia Power into a high-stakes balancing act between meeting surging energy demand and adhering to environmental goals. As the utility’s Integrated Resource Plan (IRP) faces regulatory scrutiny, investors must weigh the company’s reliance on fossil fuels against its ambitions to support tech-driven growth.

The Data Center Dilemma: Growth at What Cost?

Georgia Power’s proposed extension of coal-fired plants through 2034 has sparked fierce debate, with 80% of its projected 8,200-megawatt load growth by 2030 attributed to data centers. These facilities, powering AI and cloud infrastructure, are fueling a boom that even Georgia’s regulators acknowledge is “unprecedented.”

Yet the plan clashes with climate commitments. The utility’s parent company, Southern Company, aims to achieve net-zero emissions by 2050—a target undermined by its daughter’s reliance on coal and methane gas. “Georgia Power’s strategy is a betrayal of both its own climate goals and the tech giants it serves,” argues Sierra Club attorney Emily Carter.

The tension deepened when Georgia Power filed air permits for four new methane-gas turbines at Plant Bowen, part of a 2,800-megawatt expansion. The utility refused to disclose details, citing ongoing procurement processes—a move critics call “opaque” and “unaccountable.”

Navigating the Regulatory Tightrope

The Georgia Public Service Commission (PSC) is now at the center of this clash. Its May hearings will decide whether Georgia Power must retire coal plants sooner or prioritize renewables.

A recent $122 million customer refund, approved in January 2025, offers a glimpse of the PSC’s balancing act. The rebate addressed tax law changes but did little to offset rising bills, which have surged $43 per household monthly since 2020. “Ratepayers are subsidizing this data center gold rush,” says consumer advocate Maria Gonzalez.

Meanwhile, the utility is investing in its workforce, hiring 180 new lineworkers through partnerships with technical colleges—a move aimed at shoring up grid reliability amid expansion.

The Financial Crossroads

Georgia Power’s financials highlight the stakes. Its 2024 profits hit $2.5 billion—a 40% jump since 2022—driven by rate hikes to cover infrastructure costs. Yet investor confidence hinges on whether regulators will greenlight its fossil fuel investments or push for cleaner alternatives.

The May hearings could reshape this calculus. A ruling favoring renewable energy might pressure Georgia Power to accelerate solar and wind projects, potentially boosting long-term sustainability but risking short-term costs. Conversely, approval of its coal-and-gas strategy could lock in profits but alienate climate-conscious stakeholders.

Conclusion: A Fork in the Road

Investors in Georgia Power must decide whether the utility’s fossil fuel-heavy growth model will pay dividends or become a liability. With data center demand set to keep rising—and Southern Company’s net-zero target looming—the May PSC hearings will be pivotal.

If regulators force Georgia Power to accelerate coal retirements and renewables, the stock could rebound on environmental credibility. But if the utility’s current plan prevails, its profits may grow while its reputation takes a hit. Either way, the outcome will define Georgia’s energy future—and the bottom line for those betting on it.

Data to watch: The PSC’s May ruling, Georgia Power’s 2025 rate case decision, and the trajectory of retail electricity prices. For now, the utility’s path remains as divided as the data center’s neon glow against a smoky sky.