Alabama approves two-year electric rate freeze and solar projects for meta data center amid customer cost concerns

The Alabama Public Service Commission unanimously approved a comprehensive package of temporary utility changes on Tuesday, including a two-year electric rate freeze and approval of solar projects designed to power a Meta Inc. data center. The 3-0 vote endorsed a modified version of billing changes originally proposed by Alabama Power, the state’s largest electric utility, in November.

The rate freeze is intended to provide stability for Alabama Power customers over the next two years, shielding them from immediate price increases. As part of the same package, regulators green-lit two solar energy projects that will supply renewable power to Meta’s data center operations in the state, reflecting the tech giant’s commitment to clean energy for its facilities.

However, the decision has drawn criticism from consumer advocates who argue the rate freeze merely postpones inevitable financial burdens on Alabama Power customers while allowing the utility to maintain high profit margins. Critics contend that delaying rate adjustments now could lead to more significant increases down the road, potentially creating a larger financial impact on residents and businesses.

The approval comes as data centers across the United States increasingly seek renewable energy sources to power their operations, driven by both corporate sustainability commitments and growing pressure to reduce the tech industry’s carbon footprint. Meta’s data center project represents a significant investment in Alabama’s renewable energy infrastructure, though questions remain about the long-term costs and benefits for local ratepayers.