Southern Co unit signs 25-year power deal with OpenAI

July 22 (Reuters) - Southern ‌Company's subsidiary ​said ​on Wednesday it has signed a 25-year power supply agreement with OpenAI for a ‌new project in Effingham County, Georgia.

AI's explosive growth ⁠is straining power grids, forcing utilities and tech giants to ‌negotiate who bears the ‌cost and risk as data centers balloon in size.

Here are the details:

• OpenAI, which is expected to ​need about 3,200 megawatts (MW) of power for its new facility, has agreed to provide up ⁠to 1,000 MW to the Southern Co subsidiary Georgia Power's systems in ​times of high demand.

• The deal will improve Georgia Power's system reliability, the unit ​said.

• OpenAI will pay the full ‌infrastructure and electric service costs to serve its facility and will fulfill requirements ⁠for long-term energy contracts.

• OpenAI also said it plans to establish a community investment fund worth $80 million to ⁠support local priorities identified by residents.

• The ChatGPT maker will also ​provide up to $71 million in credits for its coding agent, Codex, for students attending colleges, universities and technical schools across ‌Georgia.

• The project is expected to create thousands of construction and permanent on-site ‌jobs, generate hundreds of millions of dollars in ⁠state and local tax ‌revenue, and prioritize ​local contractors and businesses, Georgia Power said.

(Reporting by Dharna Bafna in Bengaluru; Editing by Leroy ‌Leo)

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