Southern Company reported 2.3% year-over-year growth in retail electricity sales across its utilities for the first quarter of this year, driven predominantly by data centers.
Overall, data centers used 42% more power compared to the first quarter of 2025, according to company officials and Southern’s quarterly report to the Securities and Exchange Commission. The company has 28 large load projects representing 11 GW under contract, up slightly from 26 projects at 10 GW at the end of 2025, it said.
Across Southern’s vertically-integrated electric utilities in Alabama, Georgia and Mississippi, its largest subsidiary, Georgia Power, increased its first-quarter capital spending year-over-year from $1.6 billion to more than $2 billion.
Last week, Georgia Power filed a request with regulators seeking an additional 2 GW to 6 GW in new, all-source capacity, including thermal generation, energy storage systems and battery storage plus renewables, to meet rising energy demands.
The 2.3% growth “represents the highest total retail sales growth that we've seen in the first quarter in recent history,” said CFO David Poroch on a Thursday earnings call. “The commercial class grew 4.5% in the first quarter when adjusted for weather, bolstered by ongoing growth in data centers.”
Outside of signed contracts, Poroch said Southern is finalizing another 6 GW of large load customers and claims to have a “prospective pipeline” of 75 GW, according to its earnings presentation.
“We continue to see incredible momentum and tangible interest for power from large load customers,” said CEO Chris Womack.
The company also provided details on its $26.5 billion loan agreement with the Department of Energy, announced in February, to “build or upgrade over 16 GW of firm reliable power to the electrical grid,” DOE said in a release.
“This includes 5 GW of new gas generation, 6 GW in nuclear improved through uprates and license renewals, hydropower modernization, battery energy storage systems and over 1,300 miles of transmission and grid enhancement projects,” DOE said.
According to its presentation, the company has divided loan-eligible projects by type, with 36% being thermal generation, 21% transmission, 20% distribution and the rest split between hydro, storage and nuclear.
Southern’s work to bolster generation also includes uprates at some of its existing gas generation at plants in Alabama and Georgia that would add 400 MW at a cost of about $700 million over the next several years, “with commercial operation projected between 2029 and 2031,” Poroch said.
The company is also evaluating an additional 300 MW of natural gas upgrades, Poroch said.
When asked about the potential for upcoming nuclear deals, Womack said that he is “very excited” about the momentum around nuclear, but that the company is “not at a place to make a commitment about building a new unit.”
“We're going to continue to share the experiences that we gain from Vogtle Units 3 and 4,” he said. “But I'm very thrilled and very excited about the conversations and the commitments and the actions that are being taken, particularly around doing more around AP1000s with a group of companies.”
