Southern Company has secured 6 GW of large load contracts since the first quarter of 2026, bringing its total contracted large load to 17 GW across its territory, company executives announced during its second-quarter earnings call last week. The surge reflects what CEO Chris Womack described as "extraordinary economic development momentum and demand for power" across the Southeast, driven largely by data centers and other industrial customers. Among the recently announced deals is a 25-year, 3.2-GW contract between Georgia Power and OpenAI for a data center site near Savannah, Georgia.
The OpenAI project is expected to begin drawing electric service in 2028 and includes 1 GW of flexible demand response for peak shaving, the first time the utility has formalized such a flexibility provision with a data center customer. Southern now has more than 1.2 GW of data center load operating on its system, and electricity consumption by data centers jumped 55% year-over-year in the second quarter and 49% year-to-date. The company has identified an additional 8 GW of projects in advanced stages of contracting, with 3 GW expected to be finalized soon. Adjusted second-quarter earnings reached $1.13 per share, and adjusted earnings per share for the first half of the year hit $2.46, well above company expectations.
Womack acknowledged the growing public criticism of data centers, saying "there's noise all across the country" about the facilities. "Once again, I'll say we've got to do a better job," he said, adding that hyperscalers need to better explain the benefits and "dispelling some of the misinformation that's out there on social media." Throughout the call, Womack emphasized steps Southern's utilities were taking to ensure data centers pay their fair share of new infrastructure, including minimum bills, long-term contracts, termination payments, and high collateral requirements.
The company's financial success stems from its vertically integrated state-regulated model, which Womack said makes Southern a "comprehensive one-stop shop for power solutions and economic development." CFO David Poroch cited increased usage, customer growth, and higher Allowance for Funds Used During Construction as primary drivers for the current quarter compared to last year. Southern has won approval for roughly 10 GW of new, company-owned generation—mostly gas, along with some storage and solar—and has also issued requests for proposals in Georgia and Alabama. To the extent company-owned resources are selected through these active RFP processes and authorized by state public service commissions, Poroch said, the new generation investments would represent substantial additions to the current base capital plan.
Southern plans to spend $81 billion through 2030, with $68 billion allocated to its regulated electric utilities. The company expects selected projects from its RFP processes to be announced by year's end. Southern's electric and gas utilities serve roughly 9 million people, and its subsidiaries include Georgia Power, Alabama Power, and Mississippi Power. The investor presentation highlighted 79 years of dividends equal to or greater than the previous year, and 25 consecutive years of dividend increases. The OpenAI contract alone pushes the company beyond its recently approved capacity by around 1 GW, underscoring the scale of demand reshaping Southern's infrastructure planning and the Southeast's power grid.