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Meta, the parent company of the social media site we used to need a college email address to log into, has big plans in northeast Louisiana, but the electric infrastructure needed to turn them into reality will cost a pretty penny.
Last December, the hyperscaler announced its intention to develop its largest-ever artificial intelligence (AI) data center campus in Richland Parish, about 30 miles east of Monroe, LA. The $10 billion, 4 million square foot mega site represents one of the largest private capital investments in state history and offers to fundamentally transform the economics of what has been called a “neglected corner” of Louisiana.
“Meta’s investment establishes the region as an anchor in Louisiana’s rapidly expanding tech sector, revitalizes one of our state’s beautiful rural areas, and creates opportunities for Louisiana workers to fill high-paying jobs of the future,” noted Governor Jeff Landry. Meta estimates the project will support at least 500 direct new jobs in Richland Parish. Louisiana Economic Development believes more than 1,000 indirect jobs will also be created in the region, in addition to the 5,000 workers needed at the peak of construction on the 2,250-acre site, altogether accounting for billions of dollars in economic stimulus.
Construction is expected to begin later this year. Once operational (estimated 2030), the mile-long Richland Parish Data Center will be optimized for Meta’s AI workloads as part of the highly advanced infrastructure that helps bring Meta’s technologies, including Facebook, Messenger, Instagram, WhatsApp, and Threads to life.
But Meta’s $10 billion estimate only covers a portion of what it will cost to get the site online.
THE UTILITY’S POWER PLAY
Entergy Louisiana, one of the nation’s largest utilities, has announced it will invest $6 billion in electric infrastructure to power the project, including a 10,000-acre solar farm, three natural gas turbines, and 100 miles of new transmission lines. Carbon sequestration will offset 60% of the new gas emissions with the potential of future wind or solar expansion, according to the company.
Entergy previously said it would fast-track plans to build the three natural gas power plants, capable of generating 2,262 MW for Meta’s data center over a 15-year period – nearly one-tenth of Entergy’s existing energy capacity across four states. That may be easier said than done, considering the long lead times for acquiring most gas turbines.
Meta has pledged to match its electricity use on-site with 100% clean and renewable energy, committing to interconnect at least 1,500 megawatts (MW) of new renewable generation to the grid through Entergy’s Geaux Zero program. Some specifics are pending approval by the Public Service Commission, particularly regarding how much power will be provided by renewables versus fossil fuel generation.
WHO IS GOING TO FOOT THE BILL?
Entergy Louisiana assured lawmakers at the Joint Legislative Committee on Technology and Cybersecurity Tuesday that ratepayers would not be footing the bill.
“Rates are not going to go up, and in fact, may go down,” attested Entergy vice president Jody Montelaro. “The customer is picking up a huge amount, or a variety of storm costs, from storms that existed before they were here or ever even walked into the state.”
Montelaro also testified that there are protections in place to protect customers from getting screwed over if the project falls through.
“There are termination provisions in place to protect the customers,” he detailed to the committee. “The requisite deposits and all that are in place, such that the customers are not going to be left holding the bag for these new particular assets.”
Still, advocates are concerned customer bills might go up.
“There are some big opportunities for Louisiana in terms of economic growth, that said, we have some big concerns around the energy use and who is going to be paying for those new power plants,” Jessica Hendricks from the Alliance for Affordable Energy told local television FOX8. “There’s no reason why residential customers in Louisiana need to pay for a power plant for energy that they’re not going to use,” she added in a chat with the Associated Press.
Louisiana is among a growing number of states offering tax credits and other incentives to lure big tech firms seeking sites for energy-intensive data centers. It’s safe to say the state caught a big fish by doing so. Meta is expected to take advantage of Louisiana’s incentive program, established by Act 730, which offers qualifying projects a state and local sales and use tax rebate on the purchase or lease of data center equipment. The company is also expected to participate in the state’s Quality Jobs program.
“Richland Parish in Louisiana is an outstanding location for Meta to call home for a number of reasons,” explained Kevin Janda, Meta’s director of data center strategy. “It provides great access to infrastructure, a reliable grid, a business-friendly climate, and wonderful community partners that have helped us move this project forward. We’re thrilled to be a new member of the Richland Parish community and are committed to investing in its long-term vitality.”
