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Waynesboro Today
By the People, for the People
Georgia Power Secures Largest Federal Energy Loan for Data Center Expansion
The $26.5 billion loan package will fund new power generation and grid upgrades to support growing energy demands from data centers.
Published on Feb. 25, 2026
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Georgia Power and its parent company Southern Co. have secured a $26.5 billion loan from the U.S. Department of Energy, the largest federal energy loan ever awarded. The loans will finance new power generation and transmission grid upgrades to support the growing energy demands of data centers flocking to Georgia.
Why it matters
As data centers continue to proliferate in Georgia, driven by the state's business-friendly climate and access to renewable energy, the need for expanded power generation and grid infrastructure has become critical. This federal loan package will help ensure Georgia's energy grid can keep pace with the rapid growth of this energy-intensive industry.
The details
The low-interest loans from the Department of Energy will allow Georgia Power and Alabama Power, both subsidiaries of Southern Co., to fund a slew of new power projects and grid upgrades. This includes investments in additional generation capacity, as well as modernizing and expanding the transmission network to reliably deliver power to the state's burgeoning data center hubs.
- The loans were awarded in February 2026.
The players
Georgia Power
A subsidiary of Southern Co. that provides electricity to much of the state of Georgia.
Southern Co.
A major U.S. energy company that owns electric and natural gas utilities, including Georgia Power and Alabama Power.
U.S. Department of Energy
The federal agency that awarded the $26.5 billion loan package to support Georgia's energy infrastructure.
What’s next
The loan funds will be used to finance a multi-year program of power generation and grid upgrades across Georgia to meet the growing energy demands of the state's data center industry.
The takeaway
This landmark federal loan package underscores Georgia's emergence as a leading destination for data centers, and the critical importance of ensuring the state's energy infrastructure can reliably support this rapidly expanding industry.
