Georgia agency orders data center’s ‘pop-up’ power plant to halt construction

VoltaGrid applied last year for an air permit from EPD that would allow it to run 33 natural gas-burning engines around-the-clock to power the data center. Serverfarm also applied for permission to install its own set of backup generators as an insurance policy for power outages.

Credit: Hyosub Shin/AJC

Credit: Hyosub Shin/AJC

But EPD says both companies appear to have moved too fast.

On Thursday, the agency issued notices of violations to the companies alleging they broke state air pollution laws by installing power generators without a permit.

The VoltaGrid facility would be Georgia’s first “off-grid” power plant to provide electricity to a data center, but these sorts of power arrangements are becoming more common across the country. As data centers seek to meet their voracious power needs as quickly as possible, some see on-site generators as a path to avoid long wait times to connect to the power grid.

In Georgia, which has the authority to enforce parts of the federal Clean Air Act, air permits are also required before construction of any facility that can generate air pollution can begin.

EPD said it received information in late June indicating both VoltaGrid and Serverfarm had installed generators without a permit.

Kurt Widmann, a spokesperson for Serverfarm, said in a statement that, “Every action taken on this development project has been in careful consultation with the applicable authorities having jurisdiction.” Widmann added that Serverfarm, which has now received an air permit, has not operated any of its backup generators.

Representatives from VoltaGrid did not immediately respond to a request for comment on the alleged violation.

Credit: Hyosub Shin/AJC

Credit: Hyosub Shin/AJC

The possible infractions were first flagged to EPD by the Southern Environmental Law Center on behalf of a pair of nonprofits, Sustainable Newton and the Altamaha Riverkeeper. The day before EPD issued the notices of violations, the AJC also published a story and photos documenting the apparent unpermitted construction.

Georgia environmental regulators have ordered VoltaGrid to immediately stop building their power plant, and asked both companies for more information, including an explanation of why they began construction without proper approval.

EPD said the information the companies provide “will be reviewed by the Division and used to determine if further enforcement action, including monetary penalties, is warranted.”

Credit: Hyosub Shin/AJC

Credit: Hyosub Shin/AJC

Maurice Carter, the president and co-founder of Sustainable Newton, called the companies’ actions a wake-up call for Georgia, as it remains one of the hottest destinations in the country for new data centers.

“These specific incidents are a glaring reminder that we cannot rely solely on the good faith and trustworthiness of those seeking to do business here,” Carter said.

SELC senior attorney Patrick Anderson said he was pleased with EPD’s enforcement moves, but said he hopes the agency “takes further corrective actions that uphold the state’s permitting requirements and prevent future violations.”

PSC exploring an investigation

Georgia utility regulators, meanwhile, are considering an investigation into whether the data center developer’s plan to use a cluster of on-site generators to meet its power needs is allowed under state rules.

While most customers are assigned an electric utility to serve them based on where they’re located, certain large users get a one-time chance to choose their power provider.

It’s not clear exactly how much power Serverfarm will use, but the VoltaGrid power plant next door will have a maximum output of 90 megawatts, enough to power at least 36,000 homes. That’s well above the state’s “customer choice” threshold of 0.9 megawatts.

But during PSC committee meetings last week, Commissioner Peter Hubbard questioned whether the companies’ pop-up power plant is allowed under state law.

Citing the AJC’s reporting on the facilities’ rapid construction, Hubbard said he believes the power facility may violate the Georgia Territorial Electric Service Act, a 1973 law that divvied up the state’s land to different electricity providers. Hubbard asked the agency staff to explore a potential investigation into the matter.

Neither VoltaGrid nor Serverfarm responded to a request for comment on the potential PSC inquiry.