AI Giants Take Direct Control of Data Center Development and Power Supply
OpenAI will build a $20 billion data center campus near the Port of Savannah in Effingham County, Georgia, marking the company’s first project as lead designer and developer rather than renting capacity from cloud providers. Effingham County Industrial Development Authority approved a 50% tax abatement Tuesday for the project, dubbed Project Camellia, which will span 4.4 million square feet across four buildings within the 2,600-acre Savannah Gateway Industrial Hub. The facility will create approximately 400 full-time jobs. OpenAI committed $80 million to a community investment fund and up to $71 million in coding software credits for local college students.
Georgia Power will supply 3.2 gigawatts under a 25-year agreement, with the ability to curtail up to 1 gigawatt during peak demand periods. OpenAI agreed to pay full infrastructure and electric service costs, though the dollar amount was not disclosed. The utility faces a wave of hyperscaler requests and has proposed $16 billion in new generation capacity to add 9.9 gigawatts over five years. OpenAI plans to use a closed-loop water system that cuts freshwater consumption by up to 70%.
OpenAI’s move to directly develop data centers reflects the company’s $750 billion plan through 2030 to expand computing power, a spending level that has reportedly created friction between CEO Sam Altman and CFO Sarah Friar ahead of a planned initial public offering. The project represents one of the largest private capital investments in coastal Georgia’s history. OpenAI has not yet selected construction or technology partners and is soliciting interest from local suppliers.
The post AI Giants Take Direct Control of Data Center Development and Power Supply appeared first on Propmodo.
