Southern Co unit signs deal with Google to add nuclear capacity

Sept 21 (Reuters) - Southern Company's SO.N unit, Georgia Power, said on Monday it had signed an agreement with Google GOOGL.O to support upgrades at two of its nuclear plants that could add about 96 megawatts of electricity capacity.

The deal comes as surging electricity demand from data centers and other large users is driving interest in expanding existing nuclear plants as a source of round-the-clock, carbon-free power.

• The agreement, pending approval from the Georgia Public Service Commission, would fund power upgrades at Georgia Power's share of the Vogtle and Hatch nuclear units.

• Google's subscription would enable about $900 million in projected benefits to customers over the life of the units.

• The upgrades would involve modifications to equipment including turbines, pumps, motors and cooling systems, allowing the reactors to produce more electricity from existing plant infrastructure.

• Georgia Power said the arrangement would help meet large customers' clean-energy goals while shielding non-participating customers from costs tied to the upgrades.