The U.S. Energy Department announced its largest-ever loan of $26.5 billion on Wednesday to bolster electric power in Georgia and Alabama, aiming to deliver over $7 billion in electricity cost savings.

The department will allocate the loan to subsidiaries of the utility Southern Company. The loan will facilitate the establishment of new gas power, upgrades to existing nuclear power plants and water power, improvement of battery storage systems, and enhancement of power lines.

Energy Secretary Chris Wright stated in a press call on Wednesday that this funding would enable data center development and the reshoring of American manufacturing. He also noted that this announcement aligns with Southern Company’s recent decision to maintain rates steady for the next few years in these states, The Hill reported.

Greg Beard, director of the department's loan programs office, said Georgia Power is set to receive $22.5 billion, while Alabama Power will be allocated $4.1 billion. He noted that the energy backed ...