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Albany utility board pauses decision on data-center partnership, seeks financial analysis
Summary
After hearing a pitch about a regional data-center project and statewide demand, the Albany Utility Board voted to delay any commitment for two weeks while staff obtains financial scenarios showing costs and potential revenue sharing under proposed terms.
The Albany Utility Board on Aug. 14 discussed whether to join a data-center partnership proposed by a nearby host community and voted to defer a decision for two weeks while staff provides more financial analysis.
Mister Jacobs, who led the presentation, told the board there is “about 7,000 megawatts of potential data-center service within the state of Georgia” and that regional planning by MEAG anticipates about 1,200 megawatts of new combined-cycle capacity. He said Albany currently shows roughly 18 megawatts of excess capacity but has already committed 5 megawatts to a prior Robertsdale agreement for five years, leaving about 13 megawatts available for new commitments.
The proposal under discussion would have the host county retain 100% of the revenue on its committed 30 megawatts while participating cities would receive a share of revenues for their subscribed megawatts; Jacobs described a 50/50 sharing split for participating cities in the presentation materials. Board members pressed for clarity on the allocation ratios, the length of contract obligations and the risk of being locked into long-term commitments if demand or generation options change.
Board members raised specific implementation concerns: one member asked how long the subscription period would run (Jacobs indicated roughly 10 years was being discussed), and others flagged operational and market risks tied to the Shearer generating unit, litigation over plant retirements and possible reductions in data-center power needs due to efficiency gains. The chair summarized Albany’s position: “we are long on power,” and emphasized the need to see detailed numbers before committing to any level of subscription.
Rather than vote to accept or reject the host’s offer, the board approved a motion to continue negotiations and requested staff and ECG provide scenario analyses showing what Albany would pay and what revenues it could expect at different subscription levels. The board recorded the motion and a roll-call that resulted in approval to delay for two weeks; staff will return with the requested financial detail before any final commitment.
Next steps: staff will coordinate with ECG and other partners to produce a range of pricing and revenue scenarios and return to the board at the next meeting. The board did not authorize a final subscription amount at this meeting.
