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JASON SHAW: Georgia Does it Right with Data Centers

• By Jason Shaw Chairman, Georgia Public Service Commission

 

 

Georgia has proven time and again that it has the unique ability to temper rapid economic changes with responsible planning, ensuring we successfully navigate our state’s continuing growth.

Few industries illustrate this more clearly than the rapid rise of data centers.

 

These investments are large, complex, and energy intensive. They understandably raise serious questions about infrastructure, affordability, and environmental responsibility. Those questions deserve thoughtful answers, and over the past several months, Georgians have shown up to help provide them.

 

At recent public hearings before the PSC, my colleagues and I heard from a wide range of voices: students concerned about climate impacts, local officials focused on tax base and infrastructure, energy experts discussing grid reliability, and working men and women from the building trades who see firsthand what these projects mean for skills development, wages, and long-term opportunity.

 

The Economic Reality

According to a recent analysis by the University of Georgia, data centers are already delivering economic value to Georgia. Construction activity alone has created tens of thousands of jobs and billions of dollars in economic output. Once operational, these facilities significantly expand local tax bases, often transforming land that generates modest revenue into assets worth billions of dollars.

 

At the same time, the UGA study makes an important point: while companies do consider Georgia’s tax incentives when choosing a location, their main decision-making factor is access to affordable, reliable electricity.

Reliability Is Not Optional

Reliable electricity is foundational for a modern economy. Hospitals, manufacturers, logistics networks, households, and now data centers all depend on it.

 

After months of financial analysis and several public hearings, the PSC recently approved a significant expansion of Georgia Power’s energy production infrastructure, specifically new natural gas and solar/battery systems. The increase in power generation is unprecedented, but the PSC has an obligation to ensure the lights stay on, prices remain stable, and Georgia remains competitive.

The choice is not between economic growth and environmental stewardship. Nor is it between innovation and affordability. The challenge is to balance all of the above, using facts not hyperbole.

In our public hearings, Georgia Power produced hard evidence of the rapid need for new electric generation. Over the next 10 months, Georgia Power will sign contracts with enough large-load customers, such as data centers, to use all the approved facilities.

Protecting Customers from Cost Shifting

 

A concern frequently raised is whether these new, large, industrial customers might add costs to existing residential or small-business ratepayers. Some have suggested that data centers may not come to Georgia quickly enough to utilize all the certified new power generation.

In the unlikely event the need for new electricity does not materialize, the PSC has the flexibility to adjust its course, and to do it quickly.

 

The PSC can direct Georgia Power to suspend new power generation projects that have not started. We can close other plants early. We can end purchase power agreements with other states, and we can tell Georgia Power to sell excess electricity on the open market.

With the current rate freeze and financial backstops guaranteed by Georgia Power, Georgia would have five years to make any needed adjustments. This will ensure current ratepayers will not be on the hook, even if Georgia Power’s many forecast models are wrong.

Listening to Working Georgians

 

As we planned for this needed expansion, one of the most compelling perspectives offered during our hearings came from representatives of Georgia’s skilled trades. Electricians, HVAC technicians, and construction professionals reminded us that data centers are not just steel, wires, and servers. They are training grounds for the next generation of skilled workers.

 

These projects operate around the clock and require highly trained personnel to build and maintain them. That translates into apprenticeships, certifications, and steady, high-quality jobs that cannot be outsourced. For many young Georgians, these projects represent a pathway into the middle class.

Data centers are not a passing trend. They are part of the backbone of a modern economy. The question is not whether Georgia should welcome them, but how.

 

Economic growth and responsible regulation are not opposing forces. When done right, they reinforce each other. Georgia has proven this before, and there is every reason to believe we will continue down this path.

Jason Shaw is the Chairman of the Georgia Public Service Commission, a resident of Lowndes County, and previously served four terms in the Georgia General Assembly.