Georgia utility regulators approved a large expansion of the state power grid to meet rising electricity demand from data centers, clearing Georgia Power request for nearly 10,000 megawatts of new energy capacity. The Public Service Commission vote greenlit a plan that leans heavily on new generation, including five new natural gas plants intended to serve surging load growth.

The approval came with consumer protections. Under the agreement, the utility committed to shield existing customers from rate increases tied to the buildout until 2031 if the projected data center demand fails to materialize. Critics questioned whether the forecasted load will fully arrive, arguing there is no guarantee the demand projections hold.

The Georgia decision mirrors a national strain on electricity systems. US data center power demand is projected to climb from 31 gigawatts in 2025 to 41 gigawatts in 2026 and 66 gigawatts the following year. The share of US data centers in total peak summer power demand is expected to rise from 4.1 percent in 2025 to 5.3 percent in 2026 and 8.5 percent the year after.

State legislatures are responding to the pressure. In early 2026, more than 300 data center bills were filed across more than 30 states within roughly six weeks, signaling a shift from incentive-focused policy toward regulatory oversight of energy use and cost allocation. The wave of activity reflects growing concern over how the cost of new generation and transmission will be divided between data center operators and existing ratepayers.

Source: Government Technology -- https://www.govtech.com/policy/georgia-regulators-approve-power-grid-expansion-for-data-centers