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Southern Co. Electricity Sales Soar On 42% Data Center Growth
By Diana DiGangi of UtilityDive,
The company has 28 large load projects representing 11 GW under contract, and Georgia Power’s first-quarter capital expenditures increased year over year from $1.6 billion to $2 billion.
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.”
BY THE NUMBERS: SOUTHERN COMPANY Q1 2026
- 11 GW: Total capacity of contracted large loads as of Q1 2026.
- 2.3%: Q1’s year-over-year increase in retail electricity sales.
- $2B: Georgia Power’s Q1 capital expenditures.
- 400 MW: The amount of gas capacity that Southern Company plans to add through turbine upgrades at existing facilities in Alabama and Georgia.
- $26.5B: The size of the Department of Energy loan package that Southern Company closed on in February.
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.”
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PayPal Prepares Job Cuts As New CEO Takes "Deliberate Steps" In Turnaround Strategy
PayPal shares fell 10% in the early U.S. cash session after CEO Enrique Lores began a turnaround effort aimed at "taking deliberate steps to sharpen focus and accelerate growth."
Lores is pushing forward with a new turnaround plan that could generate at least $1.5 billion in savings for the struggling payment platform over the next two to three years. This will allow the company to reinvest in technology modernization. Lores said in an earnings release that PayPal needs to simplify operations, reduce its cost structure, and focus its investments:
"I'm energized by the opportunity to improve execution and accelerate PayPal's growth. The company has valuable assets in our brands, technology, and team – and there is significant potential ahead of us.
We are taking deliberate steps to sharpen our strategy, simplify our organization, and improve both our growth trajectory and cost structure by focusing our investments where we believe they will have the greatest impact.
I am confident in our ability to put the company on a more durable path to long-term growth and shareholder value creation, and we are executing with urgency."
Lores did not provide specifics on the scale of the coming job cuts, but Bloomberg data show that PayPal has already been trimming its workforce for several years.
The headcount peaked at nearly 31,000 employees in 2021 and has since been reduced to 23,800 as of year-end 2025.
Earlier, the Coinbase CEO announced plans to reduce the company's workforce by 14%, or about 700 employees.
Block recently told investors it would eliminate 4,000 workers, nearly half of its workforce.
We're confident the white-collar job apocalypse will only continue as AI agents replace human workers to streamline operations and trim costs.
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Tyler Durden Tue, 05/05/2026 - 11:45