Meta moves with gigantic data center to Louisiana

The rural Richland Parish in Louisiana will become the site of one of the world's largest data centers by Meta. With an impressive budget of $10 billion, a complex is being built here that will reach the size of 70 football fields and consume more energy in a single day than the entire New Orleans on a hot summer day. While the massive project is unmistakable, much remains hidden, particularly regarding Meta's financial contributions to the more than $3 billion in new energy infrastructure costs. Critics warn that the boom of AI-driven data centers allows large tech corporations to manage costly infrastructure projects with little oversight. For instance, Amazon was allowed to circumvent regulatory approval to establish two of its own data centers in Mississippi. In Louisiana, Entergy has made agreements on behalf of Meta to build three gas power plants with a capacity of 2,262 megawatts, which accounts for one-fifth of Entergy’s current energy supply in the state. This was approved by the Public Service Commission in August, after Entergy assured that consumers would be protected from a sharp rise in residential electricity rates. However, confidentiality agreements prevent the disclosure of the exact financial arrangements between Meta and Entergy. Despite the ambitions to invest in renewable energy, questions remain. These include how much electricity the center will actually need and whether the gas power plants represent the most economical solution. Meta regretted that it could not provide information on the open questions. At the same time, they benefit from a tax advantage that could result in annual losses of millions for the state of Louisiana. In other states such as Pennsylvania, New Jersey, and Oregon, the issue of passing costs onto consumers is already being addressed and new regulations are being set. In Texas, a law was even introduced that can enforce a reduction in electricity consumption by data centers in emergencies. Within the community, developments lead to mixed sentiments. While some residents expect improvements in areas such as education and health, others fear a boom-bust cycle after the construction phase ends. Property prices are already skyrocketing to accommodate thousands of construction workers, leading to tensions among the local population.