Southern Company has shared encouraging news, reporting a 2.3% growth in retail electricity sales in the first quarter of this year compared to last year. This increase is largely attributed to the rising energy demands from data centers, which consumed 42% more power than in the first quarter of 2025.
In its latest quarterly report, Southern Company announced that it currently has 28 major projects for large energy consumers, totaling 11 gigawatts (GW) under contract, a slight increase from 26 projects at 10 GW last year.
Across its electric utilities in Alabama, Georgia, and Mississippi, Georgia Power, the largest subsidiary, increased its capital spending in the first quarter, jumping from $1.6 billion to over $2 billion compared to last year.
Recently, Georgia Power filed a request with regulators to acquire an additional 2 to 6 GW of new energy capacity. This plan includes a mix of thermal generation, energy storage systems, and renewables to address the growing energy needs in the region.
David Poroch, the Chief Financial Officer, noted that the 2.3% growth is the highest seen in the first quarter in recent years. The commercial sector also showed strong growth, rising 4.5% when accounting for weather effects, thanks to the ongoing expansion of data centers.
Key Figures: Southern Company Q1 2026
- 11 GW: Total capacity for large load projects as of Q1 2026.
- 2.3%: Year-over-year increase in retail electricity sales.
- $2B: Georgia Power’s capital spending in Q1.
- 400 MW: Additional gas capacity planned through turbine upgrades in Alabama and Georgia.
- $26.5B: Size of the Department of Energy loan agreement secured by Southern Company.
Southern Company is also working on finalizing contracts for an additional 6 GW of large load customers and claims to have a potential pipeline of 75 GW. CEO Chris Womack mentioned there is significant interest in power from large customers.
Furthermore, the company is advancing its plan to enhance generation capacity, including a $26.5 billion loan agreement with the Department of Energy. This funding will help build or upgrade 16 GW of reliable power, which encompasses new gas generation, improvements to existing nuclear facilities, and various grid enhancement projects.
In addition to planned upgrades for current gas facilities to add 400 MW over the next few years, Southern is examining opportunities for further natural gas enhancements.
When discussing future nuclear projects, Womack expressed enthusiasm about the ongoing discussions but clarified that the company hasn’t made decisions about any new units yet. He highlighted that insights from their experiences with the Vogtle Units 3 and 4 will guide future endeavors in nuclear power.