Georgia Power, a subsidiary of Southern Company (SO), a leading American gas and electric utility, has signed a 25 year power supply agreement with OpenAI, for the latter's project located in Effingham County, Georgia, it said on Wednesday.
The project will require about 3,200 megawatts of power, and the AI company has also agreed to 1,000 MW of flexible demand response, under which it will minimize its power use during high demand, to support reliability across Georgia Power's area.
The arrangement follows rules approved by the Georgia Public Service Commission in January 2025 requiring large electricity users to bear the costs associated with serving their facilities.
"We appreciate the leadership and thoughtfulness of the OpenAI team as they prepare to bring significant investment and cutting-edge technology to Georgia," Aaron Mitchell, Georgia Power's Senior Vice President of Strategic Growth, said in a statement.
According to the company, this unique arrangement has helped in delivering its earlier base-rate freeze, while also aiding in its plans to deliver $102 in annual savings for customers, starting in 2029.