Equinix, Inc. (Nasdaq: EQIX) and Central Georgia Electric Membership Corporation (CGEMC) have announced a contract under which Equinix will cover all grid infrastructure costs associated with a data center project in Hampton, Ga., shielding utility ratepayers from related expenses.

Under the 20-year take-or-pay agreement, Equinix will pay 100% of CGEMC's costs for serving the contracted demand of the Hampton facility. The company will provide up-front payments for a new high-voltage substation, two new high-voltage transmission lines, and early site assessments, modeling, and engineering work. Equinix will also cover any unforeseen or shifting costs that CGEMC incurs for grid upgrades and new generation supply.

"This agreement with Equinix is a model for how utilities and data centers can come together to meet new power requests responsibly," said CGEMC President and CEO George L. Weaver.

Equinix Senior Vice President of Global Energy Adrian Anderson said the 20-year agreement gives the community "the certainty they can count on."

The Hampton project is projected to contribute up to $20 million annually in property tax revenue and create more than 990 jobs. In 2023, Equinix's presence in the Atlanta metro area contributed $23 million to household incomes through employment and value chain spending, according to the company.

Equinix said the agreement follows similar arrangements made with PG&E in San Jose, Calif., and ComEd in Northern Illinois.