Louisiana's $3B power upgrade for Meta data center raises questions about who pays

HOLLY RIDGE, La. — In a rural corner of Louisiana, Meta is building one of the world’s largest data centers, a $10 billion project that will consume more power in a day than the entire city of New Orleans at the peak of summer. The sprawling facility in Richland Parish, home to about 20,000 residents, is accompanied by more than $3 billion in new electricity infrastructure. As the project moves forward, questions persist about who will ultimately foot the bill and how transparent the process will be for ratepayers and the public.

Under a long-term contract with Entergy, the utility responsible for delivering power in the region, Meta agreed to help fund three gas-fired plants designed to produce about 2,262 megawatts of capacity — roughly a fifth of Entergy’s current Louisiana portfolio. The Public Service Commission approved the infrastructure plan in August after Entergy pledged protections intended to shield residential customers from sudden rate spikes. Yet the specifics of Meta’s financial obligation remain shielded by nondisclosure agreements, complicating public assessment of the true cost to consumers. Earthjustice attorney Mandy DeRoche said the lack of transparency makes it difficult to follow who benefits or bears potential risks for the service area and the community.

Regulators reviewed Meta’s contract with Entergy but were barred from unveiling key terms. Meta did not respond to AP questions about transparency, and Louisiana’s economic development agency and Entergy defended the nondisclosure as standard for sensitive commercial information. Davante Lewis, one of five public service commissioners, voted against the plan and said he remains unclear on how much electricity the center will ultimately use, whether gas-fired plants are the most economical option, or if the project will deliver the promised 500 jobs. “There’s certain information we should know and need to know but don’t have,” Lewis said.

Meta has agreed to fund roughly half the cost of building the plants over 15 years, including cost overruns but excluding maintenance and operation, said Logan Burke, executive director of the Alliance for Affordable Energy, a consumer advocacy group. Louisiana’s tax exemption for Meta under a 2024 law could reduce state revenue by tens of millions of dollars or more each year, the state acknowledges, complicating the calculus about who ultimately pays for the grid upgrades. Public Service Commission President Jean-Paul Coussan has said the overall impact on ratepayers will be “very little,” yet watchdogs caution that Meta could exit the contract or fail to renew it, leaving the public to shoulder the costs for the plants over their 30-year lifespan. All grid users are also expected to absorb the cost of a $550 million transmission line serving Meta’s facility.

Across the state and the region, lawmakers and regulators have begun drafting protections to prevent ratepayer shocks from energy-hungry data centers, a trend seen in other states as companies expand their AI-focused infrastructure. More than a dozen states have moved to insulate households and businesses from rising electricity costs tied to data centers. Pennsylvania’s utilities commission is working on a model rate structure to shield customers, New Jersey’s regulators are examining potential cost increases for others, Oregon enacted legislation directing regulators to set higher rates for data centers, and Texas in June passed what it calls a “kill switch” law empowering grid operators to curb data-center load during emergencies. Critics say Louisiana’s approach lags behind those efforts, potentially leaving ordinary residents more exposed to changes in the electricity market.

Local impacts extend beyond rate design. Trae Banks, who runs a drywall business that has expanded since Meta’s arrival, says the project is delivering economic growth in some corners while straining others. In Delhi, the nearby town of about 2,600 residents, Mayor Jesse Washington says the data center could eventually bring benefits in school and health care funding, but for now the construction traffic is a daily friction and property values are rising as developers chase housing for thousands of construction workers. More than a dozen low-income families were evicted from a trailer park whose owners are erecting housing for incoming Meta workers, the mayor notes, a reminder of the tensions between large-scale investment and local housing needs.

Meta has pledged to invest in about 1,500 megawatts of renewable energy in Louisiana and to spend $200 million on water and road infrastructure in Richland Parish. Banks added, “We don’t come from a wealthy parish and the money is much needed,” highlighting the mixed messages communities face when a tech giant anchors a major project. Though Meta asserts the project will create 500 jobs, residents and local leaders emphasize that long after construction ends, school and health care funding, traffic management, and housing stability will determine whether the benefits endure for communities that hosted one of the country’s largest AI-driven data center builds.

The broader national pattern is clear: as data centers scale up to power AI workloads, regulators, advocates, and residents are increasingly pressing for stronger protections to ensure the costs and benefits are shared more equitably. The Louisiana case illustrates the complexity of balancing incentives for economic development with the need for transparency in pricing, long-term commitments, and local accountability. For now, residents in Richland Parish await further clarity on what the project will cost them, how much power Meta actually uses, and whether the promised jobs and infrastructure investments will translate into lasting improvements for the community.

As the rollout continues, analysts and watchdogs say the key test will be whether the state can implement safeguards that keep ratepayers from shouldering disproportionate costs while preserving the opportunity for innovative technology projects to proceed with public confidence. With Meta’s footprint expanding and data-center activity intensifying nationwide, the Louisiana experience may shape how other states craft regulations around energy infrastructure for large-scale AI infrastructure. Meanwhile, residents in Richland Parish and nearby Delhi watch the project’s trajectory closely, hoping that promised benefits will outlive the construction phase and that the price tag will be shared in a way that protects essential services for all.