Key Takeaways
- OpenAI’s infrastructure spending is set to reach $750 billion by 2030.
- The first major project is a $20 billion data center in Georgia.
- Georgia Power will supply power for the new facility, with some capacity coming from natural gas.
- OpenAI is receiving significant tax incentives for the project.
OpenAI’s Ambitious Spending Plan
OpenAI has announced a staggering $750 billion investment in infrastructure through 2030, a figure that exceeds earlier estimates by 25%. This announcement comes as the company faces delays with its Stargate data center project.
Project Camellia in Georgia
The first phase of this investment will focus on a $20 billion data center campus in Georgia, dubbed Project Camellia. This facility will occupy 1,400 acres northwest of Savannah and is expected to draw at least 3.2 gigawatts of power from Georgia Power, the local utility. The power supply is projected to be operational between 2028 and 2032.
Infrastructure Costs and Tax Incentives
OpenAI has committed to covering all infrastructure and electric service costs associated with the new data center. In a move to support this development, the Georgia Public Service Commission implemented a rule last year preventing utilities from passing on costs related to new users consuming over 100 megawatts.
Additionally, OpenAI will benefit from a 50% property tax abatement for 15 years from Effingham County, which will significantly reduce its operational costs.
Power Supply Details
While specifics on how Project Camellia will be powered remain unclear, regulatory filings suggest that Georgia Power has received approval to generate an additional 9,885 megawatts of power. OpenAI’s deal represents roughly one-third of this new capacity.
Most of the new power is expected to come from natural gas, with plans to build or acquire around 5.8 gigawatts of generating capacity. This will include a portion from less environmentally friendly simple-cycle turbines, effectively doubling Georgia Power’s natural gas fleet. The remaining capacity will be supplemented by grid-scale batteries and solar energy.
Timeline for Operations
Although electricity from Georgia Power is anticipated to start flowing in 2028, OpenAI has not specified when the first GPU will be operational. However, the recent hiring of Brett Mayo, who previously oversaw the Colossus data center construction, may expedite the process.
The Colossus facility was completed rapidly but has faced criticism regarding its impact on local air quality, as it operated unpermitted natural gas turbines while claiming exemptions from federal clean air regulations.