OpenAI on Wednesday announced plans for Project Camellia, a large-scale data center project in Effingham County, Georgia, near Savannah.
The company said it has contracted with Georgia Power to supply 3.2 gigawatts of electricity, with power delivered in phases from 2028 through 2032.
The project marks the first data center where OpenAI will take the lead in designing and developing the facility rather than primarily relying on cloud providers. The company said it plans to invest $20 billion to qualify for an incentive package, while the full project cost could exceed $30 billion when completed, according to Bloomberg.
The move comes as AI companies race to secure more computing capacity. OpenAI has projected that its infrastructure spending could reach about $750 billion through 2030 as it expands the computing resources needed to train and operate increasingly advanced AI models, The Wall Street Journal reported.
The scale of Project Camellia has raised questions about whether such a resource-hungry facility could affect local electricity prices and grid reliability.
OpenAI said residents will not pay higher electricity rates because of the project. The company said it will cover the infrastructure and electric-service costs required to support the facility, while Georgia Power said the agreement includes financial protections designed to prevent costs from being shifted to existing customers.
The utility said OpenAI’s facility is expected to require about 3,200 megawatts of power and will provide up to 1,000 megawatts of flexible demand response. That means the company can reduce electricity use during periods of high demand to help stabilize the grid.
Community benefits and local commitments
OpenAI is also attempting to address concerns that often follow major data center developments, including pressure on public services and local resources.
The company said it will provide $80 million in community benefits over the life of the project, supporting areas such as schools, public safety, health care, workforce training, housing and small businesses.
It also plans to provide up to $71 million in Codex credits for eligible Georgia college, community college and technical school students. The credits will give students access to OpenAI’s coding tools to gain experience with AI-assisted software development.
The company expects the project to generate thousands of construction and permanent jobs and said it will prioritize local contractors and businesses. OpenAI also said it expects to become Effingham County’s largest taxpayer by contributing hundreds of millions of dollars in state and local taxes.
A new model for AI infrastructure?
OpenAI is positioning the Georgia project as an example of how future AI infrastructure can be built with greater community involvement. The company said an independent firm will conduct annual public audits to verify that it is meeting its commitments.
OpenAI will also work with residents and local officials to develop a Georgia Community Compact outlining specific responsibilities. Chris Lehane, OpenAI’s chief global affairs officer, told Axios the company believes community engagement will be critical for future projects.
“At the end of the day, you're only going to get approvals to be able to build these projects if you're actually doing right by these communities, and the communities themselves have become a lot more sophisticated,” Lehane said.
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