Georgia has emerged as a test case. Last year, the Georgia Public Service Commission struck a deal with Georgia Power to freeze residential electric rates for three years and require new data centers to sign long-term contracts covering grid expansion costs, even if they leave the state. The commission says the guarantees last 15 to 25 years, and a letter agreement promises the utility will not seek to recover those costs from residential customers if a data center exits early.

"I honestly think that what we've done to date has got all the protections in place and more," said Jason Shaw, chairman of the Georgia PSC.

But critics say the protections are not as solid as they appear. Patty Durand, who leads the advocacy group Georgians for Affordable Energy, called the rate freeze "deceptive" because it followed years of increases and delayed public hearings on new rates for three years.

"The rate freeze means there's no scrutiny on the spending and no ability to stop it or change direction until it is too late," Durand said. She also warned that the data center contracts are not public and could contain exit clauses that let companies off the hook early.

Bob Sherrier, an attorney with the Southern Environmental Law Center, shares those transparency concerns. "We have to take a lot of this at how they've described it publicly without being able to actually evaluate language and what's in there itself," he said. Sherrier fears that if the AI data center market cools and companies leave, families could be stuck paying off billions in grid construction for years.

"It's a big bet that the power companies and the data centers are making and we don't want to backstop it," he said.

Georgia regulators counter that their staff reviews the contracts, and state law shields trade secrets from disclosure. They also point to projections from Georgia Power that customers will save an average of $180 a year as data centers cover a larger share of costs.

Texas cannot simply copy Georgia's approach. In the ERCOT market, most Texans choose among multiple retail electric providers, and no single state regulator sets rates. That structural difference means a rate freeze is not an option here.

Instead, the Texas Public Utility Commission is drafting rules under Senate Bill 6, passed in 2025, which requires large electric customers like data centers to pay grid connection costs upfront and post financial security. The PUC is considering a rule that would use forfeited deposits to offset costs for other customers if a data center backs out.

"There's details to be worked out, but there is a way to do this to protect existing and specifically small consumers," said Beth Garza, a former independent market monitor for ERCOT.

The PUC declined an interview request, but at a legislative hearing earlier this year, Chairman Thomas Gleeson told lawmakers the rules would ensure ratepayers are protected and can see that protection. The rules are due in December.

With Governor-elect Gina Hinojosa set to take office next year and lawmakers returning in January, the issue is expected to be a top priority. Hinojosa has pledged new consumer protections from data center cost increases.

But as Georgia's experience shows, the devil is in the details. Rules that promise protection can still leave questions about transparency, loopholes, and whether families will actually see relief on their bills.

"People do understand when their power bill goes up and when it goes down and people don't want to pay for the cost these data centers are causing," Sherrier said.

For Texas, the stakes are enormous. The state's grid operator has warned that data center demand could double the system's peak load within a decade. How regulators balance that growth with protecting household budgets will shape the state's energy landscape for years to come.