Southern Company's contracted large load capacity rises to 17 GW

Southern Company executives said during their Q2 2026 earnings call last week that the company has added 6 gigawatts of large-load contracts since Q1 2026, bringing its total contracted large-load capacity within its service area to 17 gigawatts.

Recent announcements include a 25-year, 3.2-gigawatt data center power supply contract between Georgia Power and OpenAI, with the data center to be located near Savannah, Georgia.

Southern Company CEO Chris Womack told investors that the project is expected to begin supplying power in 2028 and includes 1 gigawatt of "flexible demand response" capacity for peak shaving—marking the company's first inclusion of such flexibility provisions in a data center customer contract.

"The OpenAI contract in Georgia will push us about 1 gigawatt beyond our recently approved capacity," he added in response to an analyst's question.

Womack said the company is also tracking another 8 gigawatts of projects in advanced negotiations, with 3 gigawatts expected to be finalized in the near term. The company currently has over 1.2 gigawatts of data center load on its system, with data center electricity usage up 55% year-over-year in Q2 and 49% year-to-date.

"The extraordinary economic development momentum and electricity demand our Southeast region has shown over the past few years continues, especially from data centers and other large-load customers," Womack said.

However, he also acknowledged public backlash against data centers, saying "there's noise about data centers all across the country."

"I'll say it again, we have to do better," Womack said. "Hyperscalers need to better explain the benefits and value they bring and dispel some of the misinformation circulating on social media."

During the call, Womack repeatedly emphasized measures Southern Company's utilities are taking to ensure data centers fairly bear the costs of new infrastructure, including minimum bills, long-term contracts, termination payments, and substantial collateral requirements.

Southern Company's electric and natural gas utilities serve approximately 9 million people, with subsidiaries including Georgia Power, Alabama Power, and Mississippi Power.

Adjusted EPS was $1.13 for Q2 and $2.46 for the first half of the year—both well above company expectations. The company's investor presentation materials show its dividend has been maintained or exceeded the prior year's level for 79 consecutive years and has grown for 25 consecutive years. The company plans to spend $81 billion through 2030, with $68 billion directed to regulated electric utilities.

Womack attributed the company's financial success to its vertically integrated state regulatory model, which he said makes the company "a comprehensive one-stop shop for power solutions and economic development."

Southern Company CFO David Poroch said that compared to the same period last year, key drivers this quarter included higher electricity usage, customer growth, and increased Allowance for Funds Used During Construction (AFUDC). Southern Company has received approval for approximately 10 gigawatts of new company-owned generation—primarily natural gas, along with some storage and solar—and has issued Requests for Proposals (RFPs) in Georgia and Alabama.

"If company-owned resources are selected in these active RFP processes and ultimately receive authorization from the respective state public service commissions, these new generation investments would represent significant incremental investment above our current base capital plan," Poroch said, adding that selected projects are expected to be announced by year-end.

The company'sregulatory filingsshow it continues to monitor proposed changes to federal coal ash handling rules while facing litigation related to coal waste disposal.

On May 18, the U.S. Eleventh Circuit Court of Appeals revived a lawsuit brought by Mobile Baykeeper alleging that Alabama Power's plan to close the surface impoundment at Plant Barry using a closed landfill method violates federal law. The case remains pending.

On July 14, the U.S. Environmental Protection Agency proposed approving a partial coal combustion residuals permit program for Alabama. According to company filings, if approved, the state permit program would replace the federal CCR program.