Southern Company Secures DOE Loans to Meet Data Center Demand

Southern Company reported a 2.3% year-over-year increase in retail electricity sales for the first quarter of 2026, marking its highest first-quarter growth in recent history. This surge is primarily driven by data centers, which saw power usage increase by 42% compared to the first quarter of 2025. The company currently has 28 large-load projects totaling 11 GW under contract, including agreements with Google, Meta, Microsoft, and Compass Datacenters, with a prospective pipeline of 75 GW.

To address this demand, the company's largest subsidiary, Georgia Power, increased its first-quarter capital spending to over $2 billion and requested an additional 2 GW to 6 GW of new capacity from regulators.

In February, Southern Company closed a $26.5 billion loan agreement with the United States Department of Energy to develop or upgrade 16 GW of reliable power. The project includes 5 GW of new gas generation, 6 GW of nuclear improvements through uprates and license renewals, hydropower modernization, battery energy storage systems, and over 1,300 miles of transmission and grid enhancement projects.