Plan to power Meta's huge Louisiana data center heads for approval — far earlier than expected

A controversial plan to power Meta's largest artificial intelligence data center anywhere in the world, to be built in rural northeast Louisiana, will head for a vote by state regulators next week, far ahead of initially planned.

The fast-tracked approval by the Public Service Commission is drawing concern from advocates who say average ratepayers and other industrial companies are being put at risk of covering electricity costs for the giant facility, equivalent to the size of around 70 football fields. Entergy and supporters of the plan say enough safeguards are in place and that there is no reason to further delay a project that could be transformational for the impoverished region.  

Entergy, which is proposing to build three gas-fired plants to power the data center, requested that the PSC take up the issue two months before the regulators were initially expected to vote. The vote at the Aug. 20 meeting will also occur before a judge who oversaw a recent hearing into the proposal will be able to release her recommendations. 

"I really want folks across the state to understand that this decision is not just about one of the world's largest data centers in North Louisiana," said Logan Burke, the executive director of the Alliance for Affordable Energy consumer advocacy group. "Whether it sets a precedent or not, and it most certainly will, the costs will show up on people's bills across the state."

A coalition of the largest oil, gas and petrochemical companies operating in Louisiana have similarly argued that the request poses huge risks for them. Around 30 companies are part of the coalition, including Exxon, Shell and Dow, under the banner of the Louisiana Energy Users Group. The coalition declined comment.

But the proposal has widespread political backing, including from Gov. Jeff Landry. Entergy, the state's largest utility, has argued throughout the months-long process that the new plants are in the public interest.

It also notes that commission rules allow the regulators to consider the request before the judge's recommendation or at any other time during a proceeding.

"At this time, the parties have issued in excess of 1,000 discovery requests, extensive testimony has been filed, and there was a multi-day hearing on the company's application," Entergy spokesperson Brandon Scardigli said. "The remaining procedural steps do not present an opportunity for additional questioning or evidence and all parties have had a full and complete opportunity to present their case to the commission."

'Stomped in its tracks'

The commission meeting will be held in the city of Plaquemine, part of the PSC's practice of regularly traveling outside of Baton Rouge. 

In July, an administrative judge oversaw a hearing into whether the utility's plan served the public interest — part of usual PSC procedures. But the hearing is only meant to be informational, with the commission not required to wait on the judge or even to abide by the recommendations.

After the three-day hearing, the various groups would typically file briefs and the judge would eventually issue a legal opinion. Burke described the process as being "stomped in its tracks."

Public Service Commissioner Davante Lewis has previously raised concerns over the fast-tracked timeline, but said this week that he wouldn't describe the moved-up vote as improper since the issues have been thoroughly debated. The process has also resulted in some agreements being reached.

Before the July hearing, a number of groups that were intervening in the case came to an agreement with the utility. These groups include the Southern Renewable Energy Association, the Sierra Club, Walmart and the staff of the PSC who help advise the regulators. Those agreements included additional commitments on renewable energy, though these are not legally binding.

The advocacy groups and the coalition of industrial companies — representing the smallest and the largest Entergy customers — are the only ones still actively opposing the case.

'All for it'

Meta announced its plans last December to build a $10 billion AI data center on a site in Richland Parish. Entergy wants to build the three new gas plants as well as other transmission infrastructure, at a cost of over $5 billion, to power the center.

The facility needs unprecedented amounts of power — at least 2,600 megawatts, more than double the peak demand that New Orleans required during the city's hottest summer.

The tech company also has plans to scale up the data center to around double that energy capacity, and expand the site to rival the size of Manhattan, according to a July social media post by Meta CEO Mark Zuckerberg. 

In publicly filed documents, Entergy says that the tech giant will cover the costs of the three power plants for 15 years.

But the oil and gas companies and the advocacy groups are concerned with Meta's 15-year contract with Entergy, a deal that is hidden from public view, citing proprietary information. They've noted that the gas plants can last between 30 and 45 years, far longer than Meta's commitment to pay.

Other new costs linked to the data center — including fuel for the plants and a $550 million transmission line — will not be covered by Meta, and are therefore shared by all of Entergy Louisiana's customers.

Entergy says that if Meta decides to leave after the 15-year term, older plants in the utility's system can be phased out in favor of the newer, more efficient ones.

It is widely expected that the regulators will approve Entergy's request. Two commissioners have already voiced their support.

"I'm for it 1,000%," said Commissioner Foster Campbell, who represents utility customers in the area where the data center is being built. "It's a part of the state that doesn't get a lot of attention. These are good paying jobs. I'm all for it."

Other state officials, including Landry, have similarly welcomed the data center as a boon for growth. It is expected to bring at least 300 permanent jobs and 5,000 at-peak construction jobs, thought it is unclear if these roles will be filled by locals.

Lewis said he has not made up his mind on how he will vote, as he's still reviewing and meeting with involved parties. 

"I still think there was a lack of transparency," he said, noting questions around job creation and the projected energy usage of the facility.

"We have never been asked to approve a utility building something so big for solely one customer. We didn't take the steps that other states took where they created rules around how they will evaluate data centers, what requirements would that application have to have if a utility brought a data center online or onto the grid."