Louisiana's $3B power upgrade for Meta project raises questions over who pays

In rural Richland Parish, Louisiana, Meta’s planned data center is driving more than $3 billion in new electricity infrastructure, a development that has sparked a debate over who should foot the bill and how costs will be allocated over the life of the project. Richland Parish is a farming community of about 20,000 residents.

State regulators and the utility involved say the plan includes a trio of gas-fired plants intended to produce about 2,262 megawatts of power, roughly a fifth of Entergy Louisiana’s current total generation. The Public Service Commission approved the broader infrastructure package in August after Entergy added protections aimed at limiting spikes in residential rates. Meta has agreed to fund roughly half of the plant costs over 15 years, including cost overruns, but maintenance and operations are not included in that commitment.

However, the specifics of the contract remain under nondisclosure agreements, and regulators say they cannot disclose details. Consumer advocates have pressed for sworn testimony and cross-examination during the regulatory review, but those efforts were unsuccessful. Earthjustice has argued that confidentiality agreements hinder public understanding of the project’s benefits and potential harms to service areas or communities.

One commissioner who voted against the plan said he remains unclear about key questions, including how much electricity the center will actually use, whether gas-fired plants are the most economical option, and whether the project will create the promised number of jobs. The lack of clarity has fueled ongoing concerns about who bears the cost if the contract changes or is not renewed.

Tax policy also looms large in the debate. A 2024 Louisiana law exempts Meta from sales tax on the project, a concession the state acknowledges could translate into tens of millions of dollars in lost revenue annually. Officials say the company will cover about half the cost of building the power plants over 15 years, but that the public would still be responsible for infrastructure such as a roughly $550 million transmission line serving the facility, as well as the ongoing costs that cover the grid as a whole over the life of the plants.

Across the country, watchdogs point to steps in other states to shield ratepayers from rising electricity costs tied to data centers. Pennsylvania is drafting a model rate structure, New Jersey regulators are studying potential cost increases for other users, Oregon enacted legislation directing utilities to set higher rates for data centers, and Texas passed a law empowering grid operators to order data centers to curb load during emergencies.

In Richland Parish, residents face a mix of anticipated gains and growing pains. Meta has pledged to invest about 1,500 megawatts of renewable energy in Louisiana and to contribute about $200 million for water and road infrastructure in the parish. Local business owners say the project has brought new jobs and demand, though the influx of construction workers has strained housing and driven up real estate costs. Some low-income families have been evicted from a trailer park being repurposed for Meta housing, and construction traffic has become a frequent complaint in the area. Delhi, the nearby town with about 2,600 residents, hopes the project will eventually bring benefits, but officials say the community wants to see tangible improvements in schools, health care funding, and long-term prosperity for residents.

Public Service Commission staff and supporters argue that the ratepayer impact will be minimal, pointing to protections built into the plan. But critics warn that Meta could decide not to renew the contract or to relocate, leaving the public to cover the power plants’ costs for decades. In addition to the generation costs, all grid users are expected to contribute to the transmission line and related upgrades that serve the facility.

As Louisiana positions itself as a test case for data center finance, observers say the state must balance attracting investment with protecting ordinary consumers and ensuring transparency. Meta has said it intends to meet its stated commitments, but the ultimate fiscal footprint will unfold over the next several years and into the 30-year life of the project.