‘Strictest contract in data center history’ reached between Georgia Power and OpenAI

SAVANNAH, Ga. (WTOC) - The Public Service Commission has approved a contract between Georgia Power and OpenAI’s Project Camila, finalizing what officials describe as historic levels of power output after years of negotiations.

Chatham County Commissioner Alicia Johnson said it is the strictest contract in data center history.

Regulatory compact

PSC Utilities Director Tom Bond said the contract departs from typical regulatory practice.

“What we’ve done here is not consistent with what they call the regulatory compact,” Bond said.

Bond said the reason involves the amount of risk both OpenAI and Georgia Power face if the operation does not proceed as planned.

“If a data center leaves or a group of data centers leave, do you have the tools to continue to protect customers?” Bond said.

Binding terms

The contract is binding. The amount of money paid and the amount of relief given to residents will remain unchanged should the project be delayed or canceled.

“Hopefully we’ll never have to decide this but if it does happen we’ll have to decide whether we’ll get Georgia Power to eat it, or we’re going to make other large-load customers pay for it,” Bond said.

OpenAI is classified as a large-load customer. Georgia Power spokesperson Joshua Peacock said the company is being treated like any other client.

“They’re a customer that can’t run their business without our power,” Peacock said.

Power commitment

The deal commits OpenAI to 3.1 gigawatts, about 14% of Georgia Power’s total capacity, according to information on Georgia Power’s website last updated in December.

“We’re just trying to ensure that this growth continues, we make sure that we leverage that for our customers’ benefit,” Peacock said.

Residents will save $15 a month because of the growth, an amount negotiated up from $8.

OpenAI will be charged with the cost of installing the power grid it will use to operate. Georgia Power said it will adjust the amount of power delivered to ensure areas around the data center campus don’t lose power.

Commissioner Johnson said she is calling on local municipalities to create stricter ordinances, specifically asking officials to examine environmental effects when deciding how their communities will be affected.