Georgia electricity costs rise amid data center boom
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Electricity costs are rising in Georgia and across the country — and could get even higher for some amid the explosion in data centers powering AI and more.
Why it matters: Surging power bills could further stress many Americans' budgets as pretty much everything else gets more expensive, too.
By the numbers: Georgia's average retail residential price for 1 kilowatt-hour of electricity rose from 14.93 cents to 15 cents between May 2024 and May 2025, per the latest available data from the U.S. Energy Information Administration, a gain of about 0.5%.
- That statistic includes all utilities, not just Georgia Power, which provides electricity to 2.8 million ratepayers, mostly in metro Atlanta.
Context: Georgia Power residential customers using more than 1,000 kilowatt-hours a month are paying about $43 more than they did at the end of 2022, according to the utility.
- That increase has helped pay for Plant Vogtle's two new over-budget nuclear reactors and fuel costs.
- Add a July with record-high temperatures and it becomes clearer why some customers saw their electricity bills double or triple.
The other side: A Georgia Power spokesperson told Axios the state's data center growth is partly why the utility can accommodate a three-year freeze of base rates.
- They argue the PSC rules have financial and contractual obligations, which means "residential and small business customers are protected from cost increases tied to these projects."
Caveat: In July, the Georgia Public Service Commission approved a plan to keep Georgia Power rates stable through 2028.
- However, the utility next year will ask the regulators to pass clean-up costs related to Hurricane Helene and other storms on to customers.
Zoom in: Georgia Power wants to add 9,000 megawatts of capacity by 2031 to handle a (potentially overestimated) data center boom, according to Georgia Recorder.
- 80% of that new electricity would be consumed by data centers and generated mostly using fossil fuels.
The intrigue: In January, the PSC approved a rule change that the utility regulator says would protect residential ratepayers from surges in demand from data centers.
- A bill to codify that policy, which consumer advocates say could provide ratepayers with greater protections, passed out of committee during the most recent Georgia General Assembly but did not receive a full vote.
The bottom line: Many of us are paying for the AI boom, whether we use the tech or not.
Editor's note: This story has been corrected to reflect that it is compared to late 2022 (not to 2023) that some customers are now paying $43 more a month.
