Watch CBS News

OpenAI is bringing a massive AI data center to Georgia. Here's what residents should know.

OpenAI is planning to build a massive AI data center in coastal Georgia. 

The company says that the project will bring thousands of jobs and billions of dollars in investment while protecting Georgia Power customers from higher electric bills.

The AI company announced Thursday that it is developing Project Camellia, a long-term data center in Effingham County, about 45 minutes northwest of Savannah. The facility will be served by Georgia Power and is expected to receive up to 3.2 gigawatts of electricity, delivered in phases between 2028 and 2032.

Georgia Power said OpenAI will pay the full cost of the infrastructure and electric service needed to support the project, meaning existing residential customers will not subsidize the facility under rules approved by the Georgia Public Service Commission in 2025.

As part of a 25-year agreement, OpenAI also agreed to reduce its electricity use during periods of high demand. Georgia Power said the company will provide up to 1,000 megawatts of flexible demand response, allowing the utility to temporarily reduce power delivered to the facility to help maintain grid reliability.

Georgia Power said the agreement is among the largest single-facility demand response commitments in the country and could reduce the need to build additional power generation in the future, creating long-term savings for customers.

"We appreciate the leadership and thoughtfulness of the OpenAI team as they prepare to bring significant investment and cutting-edge technology to Georgia," Aaron Mitchell, Georgia Power's senior vice president of Strategic Growth, said in a statement. "Companies like OpenAI are making real commitments when it comes to responsible operation and development and demonstrating the benefits that these facilities can bring to Georgia communities."

OpenAI said the project will create thousands of construction and permanent jobs while generating hundreds of millions of dollars in state and local tax revenue. The company expects to become Effingham County's largest taxpayer.

In addition, OpenAI committed to providing $80 million in community benefits over the life of the project. The funding is expected to support local priorities such as schools, public safety, health care, workforce training, housing, utilities, veterans' services, small businesses and working families.

georgia-power-sign-at-plant-mcdonough-atkinson-02-777x437.jpg
CBS News Atlanta

The company also announced up to $71 million in credits for Codex, its AI coding tool, for eligible students attending Georgia colleges, community colleges and technical schools. Eligible students will receive $100 in credits through their ChatGPT accounts to gain hands-on experience using the software.

OpenAI said the data center will use a closed-loop water system designed to recirculate water rather than continuously withdrawing and discharging it. The company said ongoing water needs will primarily support workplace functions such as restrooms, kitchens and maintenance and will be similar to those of a comparable office building.

To help ensure it follows through on its commitments, OpenAI said an independent firm will conduct and publicly release an annual audit of the project.

The proposed site is located within the Savannah Gateway Industrial Hub, an existing industrially zoned development. OpenAI said the project is expected to generate less traffic and use less water than a warehouse development previously planned for the site while providing stronger long-term tax revenue and more permanent on-site jobs.

OpenAI said it plans to continue meeting with local residents, government officials, schools and community organizations as the project moves forward. A public open house is scheduled for Thursday, where community members can ask questions and provide feedback that will help shape the project's commitments and accountability measures.

View CBS News In
CBS News App Open
Chrome Safari Continue