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July 22 (Reuters) – Southern Company’s (SO.N) subsidiary said on Wednesday it has signed a 25-year power supply agreement with OpenAI for a new project in Effingham County, Georgia.
AI’s explosive growth is straining power grids, forcing utilities and tech giants to negotiate who bears the cost and risk as data centers balloon in size.
Here are the details:
- OpenAI, which is expected to need about 3,200 megawatts (MW) of power for its new facility, has agreed to provide up to 1,000 MW to the Southern Co subsidiary Georgia Power’s systems in times of high demand.
- The deal will improve Georgia Power’s system reliability, the unit said.
- OpenAI will pay the full infrastructure and electric service costs to serve its facility and will fulfill requirements for long-term energy contracts.
- OpenAI also said it plans to establish a community investment fund worth $80 million to support local priorities identified by residents.
- The ChatGPT maker will also provide up to $71 million in credits for its coding agent, Codex, for students attending colleges, universities and technical schools across Georgia.
- The project is expected to create thousands of construction and permanent on-site jobs, generate hundreds of millions of dollars in state and local tax revenue, and prioritize local contractors and businesses, Georgia Power said.
Reporting by Dharna Bafna in Bengaluru; Editing by Leroy Leo
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