Key facts
- A $3.3 billion USDA loan to Oglethorpe Power Corporation could benefit data centers in Georgia.
- The loan is the largest ever issued by the USDA's Rural Utilities Service.
- Oglethorpe Power stated the new facility will help member cooperatives meet growing electricity demand, not exclusively serve a data center.
A record $3.3 billion loan from the U.S. Department of Agriculture to Oglethorpe Power Corporation in Georgia could potentially support the expansion of data centers in the state, according to Glen Smith, the agency's Under Secretary for Rural Development. The loan, the largest ever from the USDA's Rural Utilities Service, is intended to help 38 rural utility cooperatives meet growing electricity demand across their communities.
Smith expressed hope for securing more funding for similar projects, noting that the agency has $8.6 billion in requests after only one month into the fiscal year. He plans to meet with congressional appropriators next week to request additional funds. Data centers are driving U.S. electricity use to record highs, and while Smith believes rural areas can benefit from their presence, adequate infrastructure is crucial.
Last year, Google purchased nearly 1,000 acres in Monroe County for a data center. However, Oglethorpe Power spokesperson Blair Romero clarified that the new facility is not dedicated to serving a data center. The Trump administration has generally supported data center growth without imposing regulations, instead encouraging tech companies to absorb electricity costs.