SO · Earnings call · 2026Q3T · Full report

Data Center / Load Growth

SOUTHERN CO · 2026-11-05 · Importance 75 · Surprise 64 · In source text

Data center usage was 59% higher in the quarter and 52% higher year-to-date, as customer load ramps accelerated. Southern Company’s signed large-load contracts reached 21 gigawatts, with another 7 gigawatts in late stages across Alabama, Georgia and Mississippi; Alabama Power and Georgia Power each added approximately 2 gigawatts of contracted load during the quarter. Management said these customers have minimum-bill provisions decoupled from electricity usage and pay at least their full share of costs. The pipeline includes traditional web-hosting businesses and hyperscalers, with recent signings weighted toward hyperscalers; some existing customers are discussing contract amendments, recontracting and campus expansions.

Key facts

• Southern Company reported a 75-gigawatt prospective large-load pipeline and said it would continue to risk-adjust it rather than expect to land all 75 gigawatts.
• Data center usage was 59% higher in Q3 2026 and 52% higher year-to-date, primarily due to accelerating customer load ramps.
• Southern Company's signed large-load contract portfolio reached 21 gigawatts, with an additional 7 gigawatts in late stages across Alabama, Georgia, and Mississippi.
• Large-load and data center customers pay at least their full share through minimum bills decoupled from electricity usage.
• Southern Company said its large-load minimum bills cover at least 100% of the costs being introduced into the system, before electricity is delivered through the meter.
• Alabama Power and Georgia Power each added approximately 2 gigawatts of contracted load in Q3 2026.
• Southern Company said its data center customers pay at least their full share and existing customers do not have to support the work.

Impact estimates