Georgia PSC Approves Secret OpenAI Contract

by | Aug 28, 2026 | Energy

Georgia PSC Approves Secret OpenAI Contract

The Georgia Public Service Commission staff has approved a power supply contract between Georgia Power and OpenAI for a large-scale data center development planned in Effingham County, according to state officials. The facility is designed to operate at 3.2 gigawatts of capacity. The approval process has drawn significant scrutiny from environmental advocates and public interest organizations concerned about the secretive nature of the negotiations and decision-making.

Environmental groups including the Sierra Club and the Southern Alliance for Clean Energy have expressed concerns about the lack of direct oversight by the full PSC commission. According to the organizations, the approval was handled through staff-level action rather than a formal commission vote, which they argue limits public accountability. The groups contend that the development represents a broader pattern of major infrastructure decisions being made without adequate transparency or community input.

Stakeholders have raised questions about the financial implications of the arrangement, particularly regarding how costs will be allocated and what mechanisms exist to protect ratepayers if circumstances change. The Southern Alliance for Clean Energy noted uncertainties about cost calculations and what safeguards would apply if the data center reduces its power demand or relocates operations. Environmental advocates have also raised concerns about potential impacts on local communities and the broader implications of rapid data center development in the state.

The approval comes amid ongoing tension between energy infrastructure development needs and demands for greater public transparency in major utility contracts. Environmental organizations have called for the PSC commission itself to assume greater oversight authority in future agreements of this magnitude to ensure more robust public review processes.

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