EFFINGHAM COUNTY, Ga. — A proposed 1,400-acre OpenAI data center campus in Effingham County is moving closer to local review after state regulators approved its power agreement and regional officials completed an impact assessment of the massive project.
The Georgia Public Service Commission approved Georgia Power’s contract to provide Project Camellia with up to 3,200 megawatts—or 3.2 gigawatts—of electricity. Separately, the Coastal Regional Commission released its final Development of Regional Impact report on Aug. 26.
The regional report examines how the project could affect traffic, the environment and public services while recommending measures to reduce those effects.
Effingham County Manager Tim Callanan said the Georgia Power approval and the county’s development review are independent processes. The county had been waiting for the final regional impact report before moving forward with Project Camellia’s preliminary site plan.
Commissioners will discuss the project during a three-hour public work session scheduled for Saturday, Aug. 29, from 10 a.m. until 1 p.m. at the Effingham County Administrative Complex, located at 804 S. Laurel St. in Springfield.
The preliminary site plan review will give commissioners an initial look at the proposed campus layout and determine whether it meets requirements involving buffers, setbacks and other development standards. Callanan expects the Effingham County Board of Commissioners to review the preliminary plan on Sept. 14.
A more detailed development plan review would follow. That process would examine wetlands protections, stormwater management, land-disturbance permits and compliance with other applicable regulations.
Environmental Concerns Identified
The final regional impact report identified potential concerns involving wetlands, floodplains, wildlife, water quality and stormwater runoff.
Approximately 65% of the site is expected to be covered by buildings, pavement and other surfaces that prevent water from soaking naturally into the ground once the campus is fully developed.
Savannah Riverkeeper warned that the amount of impervious surface could significantly increase runoff and create a greater risk of pollutants and debris reaching nearby waterways.
The Coastal Regional Commission recommended that Effingham County closely examine the project’s potential effect on the surrounding drainage system and flood risks, including areas identified through Federal Emergency Management Agency flood-zone designations.
Georgia Power Communications Lead Joshua Peacock said the project remains in its early stages despite approval of the power contract. Building the substations, transmission lines and other infrastructure needed to serve the campus will require an extensive planning and construction process.
Georgia Power said future updates and timelines for Project Camellia and the related transmission line project will be posted on the utility’s website.
One of Georgia Power’s Largest Customers
At full buildout, the OpenAI campus would require enough electricity to power approximately three cities the size of Atlanta. The demand would make OpenAI one of Georgia Power’s largest individual customers.
Georgia Power previously asked the Public Service Commission to approve an additional 9,900 megawatts of generation capacity, citing projected growth from major electricity users across Georgia—primarily data centers.
Peacock said Georgia Power has the capacity to serve the Effingham County campus along with other large customers expected to begin operating in the coming years. Georgia’s electric grid is also connected to neighboring states, allowing utilities throughout the Southeast to buy and sell electricity.
The utility is awaiting state permits to expand two natural gas plants, including Plant McIntosh in Effingham County, as part of its plan to meet growing energy demand.
Georgia Power claims its expanding group of large-load customers will generate approximately $950 million in annual savings for other utility customers beginning in 2029. The company estimates those savings could reduce the typical residential customer’s annual bill by approximately $180.
Under the approved agreement, OpenAI is responsible for paying the full cost of the infrastructure required to serve its campus.
Commissioner Questions Contract Review
The power contract has been entirely redacted from public view because it contains information classified as trade secrets.
Peacock said Georgia Power does not publicly release private information about residential or commercial customers. He argued that disclosing details from the agreement could harm both OpenAI’s and Georgia Power’s competitive positions and eventually affect ratepayers.
Public Service Commissioner Peter Hubbard, however, argued that an agreement of this size deserved additional public scrutiny. The commission extended its initial review period following an Aug. 13 hearing before approving the contract Aug. 26.
Hubbard said the agreement is 32 times larger than the threshold used to classify Georgia Power contracts as large-load agreements.
His review focused primarily on the financial risks of serving such a massive customer. Those concerns included whether OpenAI provided enough collateral to protect Georgia Power if the project ends early, whether generation resources built for the campus could be used elsewhere and whether minimum monthly payments would fully cover the cost of service.
Hubbard also sought stronger provisions intended to prevent costs associated with data centers and their electrical infrastructure from being passed to residential customers and small businesses. He said those protections will still require enforcement by the Public Service Commission.
The commissioner described OpenAI’s agreement to provide up to 1,000 megawatts of flexible demand response as a positive feature of the contract and one he believes should be included in future data center agreements.
The provision allows Georgia Power to reduce the amount of electricity delivered to the campus when the power grid is under stress. The utility says that flexibility could reduce the amount of additional generation capacity it must build and create savings that could be shared across its customer base.
The Public Service Commission will hold its Sept. 15 administrative session outside Atlanta. The meeting is scheduled from 9:30 a.m. until noon at the Chatham County Administrative Building, located at 124 Bull St. in Savannah.
Members of the public will have an opportunity to address commissioners with comments or concerns during the session.
Yolonda Harris
News Now Georgia
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