en.Wedoany.com Reported - Georgia Power, a subsidiary of Southern Company (SO.N), has signed a 25-year power supply agreement with OpenAI for a new project in Effingham County, Georgia.

The rapid development of artificial intelligence has led to a continuous increase in grid load, with utility companies and tech giants negotiating over the costs and risks of data center expansion.

Under the agreement, OpenAI's new facility is expected to require approximately 3,200 megawatts of power, and OpenAI has agreed to provide up to 1,000 megawatts of power to Georgia Power's system during peak demand periods. Georgia Power stated that the deal will enhance system reliability. OpenAI will bear all costs for its facility's infrastructure and power services, and will fulfill the requirements of a long-term energy contract.

OpenAI also plans to establish a community investment fund worth $80 million to support local priorities identified by residents. Additionally, the company will provide up to $71 million in credits for its coding agent Codex to students at colleges, universities, and technical schools in Georgia. Georgia Power stated that the project is expected to create thousands of construction and permanent jobs, generate hundreds of millions of dollars in state and local tax revenue, and will prioritize local contractors and businesses.