Southern Company Reports 55% Surge in Data Center Power Usage, Pipeline Hits 17GW

Southern Company, one of the largest regulated utilities in the U.S. Southeast, reported a sharp acceleration in electricity demand from data centers and other large-load customers, with data center power consumption across its footprint jumping 55 percent compared to the same period last year. The Atlanta-based utility, which serves more than nine million customers across six states, disclosed the figures in its second-quarter earnings report, underscoring the accelerating pace of AI-driven infrastructure buildout in the region.

The company said its contracted large-load pipeline has surged by 6GW since its last earnings release, reaching a total of 17GW. This includes a landmark 3.2GW, 25-year agreement between Georgia Power, a Southern subsidiary, and OpenAI for a data center campus near Savannah, Georgia. The deal, one of the largest of its kind ever signed by a U.S. utility, highlights the scale of power commitments now being made to support hyperscale AI computing.

Beyond the contracted volume, Southern CEO Chris Womack said an additional 8GW of projects are in late-stage development, with roughly 3GW expected to be finalized in the near term. He also noted that the company's prospective pipeline of large industrial and data center projects now exceeds 75GW, reflecting what he described as "extraordinary economic development momentum" across the Southeast.

Operational data center load across Southern's system now exceeds 1.2GW, an increase of more than 500MW year-over-year, driven primarily by accelerating load ramps from large-load customers, according to Womack. The utility provides regulated electric and gas service across major parts of Georgia, Alabama, and Mississippi, positioning it at the center of one of the fastest-growing data center corridors in the country.

Addressing growing public and political scrutiny over data center development, Womack acknowledged the "noise" surrounding moratoriums on new builds, but said no statewide ban exists in its service territory. "There's noise all across the country about data centers. I think there's no moratorium across the state. There may be some moratoriums in various counties, but I think you continue to see progress and projects move forward in our territory," he said. He added that hyperscalers need to do a better job of explaining the benefits of data centers and dispelling misinformation on social media. Notably, since the earnings call, New York has become the first U.S. state to enact a moratorium on new data center construction.

To support the anticipated growth, Southern Company secured a $26.5 billion loan from the U.S. Department of Energy in February, delivered through the DOE's Office of Energy Dominance Financing. The funding will support Georgia Power and Alabama Power in building and upgrading more than 16GW of firm power capacity for both states' grids, a move aimed at ensuring reliability as demand continues to climb.

The surge in contracted load and power usage at Southern mirrors a broader trend across the U.S. utility sector, where data centers are becoming the primary driver of electricity demand growth. Analysts say the scale of commitments — particularly long-term contracts like the OpenAI deal — signals a structural shift in how power is procured and planned, with utilities increasingly prioritizing large-load customers in grid expansion strategies.