The U.S. Department of Agriculture has awarded a record-breaking $3.3 billion loan to Oglethorpe Power Corporation for a power plant in Monroe County, Georgia, with the project potentially helping meet electricity demand from data centers and other expanding industries.

Glen Smith, the USDA’s Under Secretary for Rural Development, said in a Thursday interview that the plant would serve 38 rural utility cooperatives and support growing economic activity across the state. He also expressed interest in securing additional federal funding for similar projects as electricity demand continues to rise.

The USDA announced the loan Tuesday through its Rural Utilities Service, making it the largest loan ever issued under the program.

The project has drawn attention because of the expanding data center industry and its growing need for electricity. Google purchased nearly 1,000 acres of land in Monroe County last year for a potential data center development, raising questions about whether the new power plant could help supply energy to such facilities.

Oglethorpe Power pushed back against the suggestion that the facility was being built specifically for a data center. Spokesperson Blair Romero said in an email that “this facility is not dedicated to serving a data center” and that it would help the company’s member cooperatives meet growing electricity demand across their communities.

Smith said he plans to meet with congressional appropriators next week to request additional funding for rural utility loans. The agency has already received nearly $8.6 billion in requests just one month into the fiscal year, he said.

“We have almost $8.6 billion in requests, and we're only into our fiscal year one month,” Smith said.

Smith argued that rural communities can benefit from data center development, provided the necessary infrastructure is available to support the facilities and their substantial electricity needs.

“[R]ural areas can benefit from data centers, but you have to have the infrastructure in place. And that's where rural utilities and rural development come into play,” he said.

Data centers are helping drive U.S. electricity consumption to record levels, with some regions facing demand that exceeds what existing power grids can supply. The rapid expansion of these facilities has also sparked opposition in communities concerned about water consumption, rising utility bills and the strain on local infrastructure.

The Trump administration has backed data center expansion while asking technology companies to pledge not to pass electricity costs associated with the facilities on to consumers. Democrats are seeking to capitalize on public concerns over data center development ahead of November’s midterm elections.

The USDA loan highlights the administration’s approach of expanding electricity infrastructure to accommodate growing demand, including from emerging industries, rather than restricting data center construction.