USDA loan to Georgia power plant may support data center-driven demand

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USDA loan aids Georgia power

Highlights

USDA issued its largest-ever Rural Utilities Service loan to Oglethorpe Power Corporation, potentially benefiting 38 rural cooperatives in Georgia and supporting industrial growth.
Oglethorpe's new plant will help meet rising electricity demand across member communities as Georgia attracts major data center investment, exemplified by Google's 1,000-acre Monroe County purchase.
Nationally, rapid data center expansion raises U.S. power consumption, prompting political debate over utility costs ahead of the November midterm elections.

Loan scope and funding push

As reported by Reuters, Glen Smith, the USDA's under secretary for rural development, says the agency's record-breaking loan to Oglethorpe Power Corporation could benefit 38 rural utility cooperatives in Georgia and support expanding industrial demand, potentially including data centers.

The USDA announces the loan on Tuesday, describing it as the largest ever issued under the agency's Rural Utilities Service. Smith says he plans to meet congressional appropriators next week to seek additional funding for similar projects, adding that the agency already has nearly $8.6 billion in requests only one month into its fiscal year.

Smith says rural areas can benefit from data centers if they have enough infrastructure in place, with rural utilities and development programs playing a central role in that buildout.

Georgia demand growth and political backdrop

The financing comes as Georgia draws more data center-related interest. Last year, Google purchased nearly 1,000 acres in Monroe County for a data center, underscoring the area's potential role in the sector's expansion.

Oglethorpe spokesperson Blair Romero says the new facility is not dedicated to serving a data center and instead will help member cooperatives meet growing electricity demand across their communities. Nationwide, data centers are pushing U.S. electricity use to record highs, and in some regions they are requiring more power than grids can supply.

The Trump administration supports rapid data center expansion despite opposition from communities worried about water use and utility costs. Democrats are trying to use that discontent in the November midterm elections, while the administration is asking technology companies to pledge not to pass electricity costs on to consumers instead of pursuing direct construction limits.

Our earlier article on India’s clean energy investment surge explained that capital inflows rose 15% to $72 billion, lifting the country to fifth place globally in energy transition investment rankings. We noted that this shift reflects growing long-term funding for power and related infrastructure, supporting new capacity and broader development across the energy system.

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