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Powering Progress: How a New Data Center Deal Puts Local Families First

NY Legislators Might Take Note

By Howard Roark
Powering Progress: How a New Data Center Deal Puts Local Families First

When neighbors hear “data center,” many picture humming warehouses, higher bills, and strained water and power. Georgia’s newly approved contract between Georgia Power and OpenAI for a 3.2-gigawatt campus in Effingham County offers a different picture: a large-load customer that pays its own way, funds new energy infrastructure, and is projected to lower residential electric bills.

The project, known as Project Camellia, would rise on industrial land at the Savannah Gateway Industrial Hub near Rincon. OpenAI has described an investment of $20 billion initially and more than $30 billion at full build-out, with four buildings totaling about 4.4 million square feet. Power would arrive in phases from 2028 through 2032. Under the agreement reviewed by the Georgia Public Service Commission, OpenAI—not existing ratepayers—covers the full cost of infrastructure needed to serve the site.

That rule is the heart of the community case. Large customers drawing more than 100 megawatts must bear their own electric-service costs. Georgia Power says revenues from OpenAI and other large-load customers already announced, plus expected growth, should generate about $950 million in annual savings beginning in 2029, or $2.847 billion from 2029 through 2031. For a typical household using 1,000 kilowatt-hours a month, the utility now projects at least $15 a month, or $180 a year, starting in 2029—up from an earlier estimate of $102 a year. Those savings follow a 2025 base-rate freeze and a 2026 rate-reduction plan.

The campus also adds flexibility to the grid. OpenAI has committed up to 1,000 megawatts of demand response, allowing Georgia Power to reduce deliveries during peak statewide demand. Utility officials say that can limit how much new generation must be built solely for growth and is among the largest single-facility demand-response pledges in the country. New generation still must be built to serve the load; OpenAI is expected to pay for the portion required to serve it.

Local governments stand to gain as well. Officials say OpenAI is expected to become Effingham County’s largest taxpayer, even with a 15-year, 50 percent property-tax abatement. The company has pledged $80 million in community benefits for schools, public safety, health care, workforce training, housing, utilities, veterans’ services, small businesses, and working families, plus hundreds of millions in state and local taxes over time. It has also pointed to construction jobs, hundreds of permanent positions, and up to $71 million in coding credits for Georgia college students. An independent annual audit is supposed to check those commitments.

Water is another frequent local worry. OpenAI says the campus will use a closed-loop cooling system and will not divert water from nearby communities. The site is already zoned industrial, which supporters argue is a better fit than scattering such facilities across farmland or residential edges.

None of this erases debate. Some residents and lawmakers have objected to secrecy in early talks, noise, land use, and the scale of new generation. Those concerns matter. What the Georgia framework tries to do is separate the growth of computing from a hidden tax on households. If the numbers hold, families and small businesses would see lower bills because a data-center customer is paying more, not because neighbors are subsidizing it.

For other towns weighing similar proposals, the lesson is practical. Demand that large users fund their own substations, lines, and generation share. Require peak-hour flexibility so the rest of the system is not built around one customer’s worst day. Put tax and community-benefit dollars in writing, with independent review. Protect water with closed-loop designs. Then judge the project by what shows up on a household bill, a school budget, and a tax roll—not by slogans alone.

Done that way, a data center is not a gift or a burden by default. It is a large industrial neighbor that can pay for the power it uses, help finance the grid everyone shares, and leave more money in local pockets than it takes. Georgia’s latest approval shows that bringing large business to your community can be a bonanza for local families.

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