Georgia Power reported a net drop of 6 GW in its large load pipeline during the third quarter of 2025, driven by project exits and delays in data center developments. This shift, detailed in a filing with the Georgia Public Service Commission on November 24, 2025, highlights challenges like lower materialization rates and cancellations, even as some commitments grow.
Pipeline Changes and Key Drivers
The utility’s overall pipeline for large load economic development projects stood at 50.9 GW by the end of the third quarter. This marks a decrease from the previous quarter, with 6.8 GW of new projects entering and existing ones boosting their load by 1.6 GW. However, 14.3 GW of projects left the pipeline, leading to the net reduction.
Experts point to data centers as a major factor in this change. These facilities, which demand huge amounts of power, have faced hurdles such as construction delays and shifting market needs. Georgia Public Service Commission staff noted that data centers are underperforming expectations, with some projects canceled outright.
The near-term pipeline for projects set for the winter of 2028 and 2029 also shrank by 1.4 GW, now totaling 24.4 GW. This reflects broader trends in the energy sector, where rapid growth in tech-driven loads meets real-world limits like grid capacity and economic shifts.
Growth in Commitments Amid Declines
Despite the pipeline drop, Georgia Power saw positive movement in firm commitments. The number of committed large load customers rose from 26 to 28, adding 2.2 GW to the total. This brings the utility’s overall commitments to 11 GW.
Of these 28 projects, 18 have started construction, and 10 await groundbreaking. This progress shows that many customers are moving forward without major setbacks. For instance, long-term load from committed projects jumped from 3,721 MW in the second quarter to 7,313 MW in the third.
Projects that have broken ground make up 6,175 MW of the 7,800 MW committed for the winter of 2028 and 2029. This indicates steady materialization in key areas, even as the broader pipeline contracts.
Impacts on Georgia’s Energy Landscape
The pipeline reduction could ease some pressure on Georgia’s power grid, which has strained under surging demand from data centers and other large users. In recent years, the state has become a hub for tech infrastructure, with data centers driving much of the load growth.
However, this has sparked concerns among residents and analysts. Power bills in areas like Athens have risen sharply, with some reports of increases up to 60 percent since 2023. Critics argue that rapid expansions benefit big tech firms but burden everyday consumers.
Utility leaders maintain that these developments support economic growth. Georgia Power’s filings emphasize active engagement with customers to refine forecasts and timelines. The company’s 2025 Integrated Resource Plan projects adding at least 6 GW of new generation capacity by 2031 to meet ongoing needs.
Here are some key factors influencing the energy sector in Georgia:
- Rising demand from data centers, up 17 percent year-over-year in some reports.
- Utility efforts to upgrade transmission for better reliability.
- Push for renewable energy, with plans to add 4 GW of capacity by 2035.
Broader Trends in Data Center Development
Nationwide, data centers are booming but facing headwinds. Utilities across the U.S. report similar issues, with power shortages delaying projects. For example, in Northern Virginia, a major data center hub, some expansions have halted due to grid constraints.
In Georgia, the pipeline shrink aligns with a trend of reassessing ambitious plans. Southern Company, Georgia Power’s parent, has inked 7 GW of large load contracts while eyeing 50 GW more by the mid-2030s. Yet, cancellations and delays suggest a more cautious outlook.
Analysts warn that without balanced growth, costs could keep climbing. Environmental groups advocate for cleaner energy sources to offset the pollution from increased fossil fuel use.
| Quarter | Pipeline Size (GW) | New Entries (GW) | Exits (GW) | Net Change (GW) |
|---|---|---|---|---|
| Q2 2025 | 56.9 | N/A | N/A | N/A |
| Q3 2025 | 50.9 | 6.8 | 14.3 | -6 |
| Near-Term (2028-2029) | 24.4 | N/A | 1.4 | -1.4 |
Future Outlook and Challenges
Looking ahead, Georgia Power expects load growth to triple over the next decade, largely from data centers. The utility’s risk-adjusted forecast shows about 8,200 MW of growth through 2031, up from earlier projections.
Challenges remain, including securing enough power and managing costs. Recent voter pushback in some areas highlights tensions over expansions that raise bills and use land without clear community benefits.
Industry watchers predict more refinements in forecasts as market conditions evolve. With data centers central to AI and tech advancements, balancing innovation with sustainability will be key.
What do you think about these changes in Georgia’s power landscape? Share your thoughts in the comments and pass this article along to others interested in energy news.
