Google Partners With Southern Co's Georgia Power for AI Data Centers, Deal Projected to Deliver $900 Million in Customer Benefits

Southern Company‘s (NYSE:SO) subsidiary Georgia Power and Alphabet Inc.‘s (NASDAQ:GOOG) (NASDAQ:GOOGL) Google announced Monday an agreement to support nuclear power uprates at the Vogtle and Hatch plants to secure more clean power for its data centers. What the Deal Involves The deal is expected to deliver roughly $900 million in projected benefits to customers over the life of the units. It will add about 96 megawatts of new capacity to the grid by upgrading Georgia Power-owned portions of the nuclear units at Vogtle and Hatch. As part of the deal, Google will subscribe to the new tariff and receive Zero-Emission Credits tied to the nuclear power generated. The agreement is subject to approval by the Georgia Public Service Commission. Read Also: Paramount's $110B Warner Bros. Discovery Merger Clears Legal Hurdle; Elizabeth Warren Says Letting Trump-Aligned Entity 'Dominate' News Is 'Disastrous' Pushback Against Data Centers in Georgia The deal also comes amid growing pushback in Georgia, where state Rep. Ruwa Romman (D-Ga.) introduced a bill earlier this year proposing a statewide moratorium on new data centers through March, citing concerns over their environmental and economic impact. Google’s director of Advanced Energy Technologies, Lucia Tian, said the company’s data centers serve as “a proof point” for bringing new nuclear capacity online by expanding existing plants, adding that the deal helps deliver “a more affordable, clean, and reliable energy system for all Georgia residents.” Data Center Spending Is Exploding Data-center capital expenditure is projected to rise from 1.4% of GDP in 2025 to 3.1% by 2027, with hyperscaler capex expected to reach roughly $916 billion over the next 12 months and nearly $1.2 trillion the year after. S&P Global has estimated combined capex from Alphabet, Amazon.com, Inc. (NASDAQ:AMZN), Microsoft Corp. (NASDAQ:MSFT), Meta Platforms Inc. (NASDAQ:META), Oracle Corp. (NYSE:ORCL) and Space Exploration Technologies Corp. (NASDAQ:SPCX) will exceed $1.3 trillion in 2027. Price Action: Southern Co closed 0.07% lower on Monday at $85.46 and gained 0.48% in extended trading. Benzinga edge rankings indicate Southern Co’s stock has a Momentum score in the 18th percentile and a Growth score in the 59th percentile. See More: Top Momentum Stocks Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors. Photo Courtesy: ZikG on Shutterstock.com