What's next for Meta's giant Louisiana data center project?

Meta – the parent company of Facebook, WhatsApp and Instagram – announced plans last year to build its largest-ever artificial intelligence data center in a rural part of northeast Louisiana. State officials welcomed the project as a boon for economic development in an impoverished part of the state, but its massive energy needs have led to sharp criticism.

Two developments last week added to the debate. The proposal to power the facility reached a key stage at a hearing in Baton Rouge and, separately, Meta CEO Mark Zuckerberg said he wants to eventually scale the facility up to a footprint that would rival the size of Manhattan.

Here's what you need to know about where Meta's giant Louisiana project stands. 

What is a data center? 

Imagine a computer warehouse. Data centers are physical spaces filled with servers – computers that store, process and send out digital data. Whenever you send an email or shop online, the information these actions generate are processed at data centers.

They have been around for decades, but the rapid advancement of artificial intelligence is changing the landscape. AI data centers that train new models require exponentially more energy. As tech giants compete in the AI arms race, they are quickly building data centers that need more power than major cities and sit on millions of acres of land. 

What is Meta planning?

Meta is planning a $10 billion AI data center in northeast Louisiana, near the tiny town of Holly Ridge in Richland Parish. Last December, the tech company announced that the facility would sit on former agricultural land the size of around 70 football fields.

The location is rural with high rates of poverty. Top Louisiana officials supporting the project, including Gov. Jeff Landry, say it will transform the long-struggling community. The four-million-square-foot facility is expected to bring 300-500 permanent jobs and 5,000 construction jobs at its peak (though it is unclear if these jobs will go to locals). 

The Louisiana data center is a key piece of Meta's goal to create "superintelligent" technology faster and better than rivals like Google and OpenAI. Meta's recent AI products have lagged behind competitors. Zuckerberg's company is spending billions to recruit new talent and build systems smarter than the human brain. 

How much energy does it need? 

Meta's data center needs lots of power – at least 2,600 megawatts, according to a December 2024 document. That's more than double the peak amount of energy that New Orleans needed during the city's hottest summer two years ago. This number is likely higher now, since the tech company has requested to increase its energy load by an amount redacted from public view, according to a February state regulatory document.

But Meta has even bigger plans. Zuckerberg posted on his social media platform Threads last week that the company intended to ramp up the facility to 5,000 megawatts over several years, the size of which would rival Manhattan. 

What's Entergy's role in the data center?

Entergy Louisiana wants to spend over $5 billion to build three new natural gas plants and other infrastructure to serve Meta's demand. It needs the approval of the state's utility regulatory body, the Louisiana Public Service Commission (PSC), to build them. 

Entergy submitted its proposal to regulators last fall in a series of publicly released documents that were heavily redacted. The utility says that the confidential information is commercially sensitive, but groups opposing the power plan have criticized Entergy for shielding key facts from the public.

Notably, the actual contract between Meta and Entergy – a 15-year deal over electricity supply – is not up for approval or viewable to the public. Only those involved in the case at the PSC, all of whom signed confidentiality agreements, and the commissioners themselves can see Entergy's deal with Meta.

What happened last week? 

Entergy officials and groups intervening in the case at the PSC gathered in Baton Rouge last week for a hearing before an administrative law judge, who works specifically for the state's regulatory body. Employees of the utility defended their plan to serve Meta's data center, while opponents questioned Entergy's claims. 

The main organizations opposing Entergy's proposal formed an unlikely coalition. They include environmental nonprofits the Alliance for Affordable Energy and the Union of Concerned Scientists, but also the Louisiana Energy Users Group, a network of oil, gas and petrochemical companies across the state. Because so much of the proposal has been designated confidential, journalists and other members of the public were forced to leave for large portions of the hearing. 

What does Entergy say about the plan? Why do others disagree?

The intervening groups represent Entergy customers big and small. They're arguing that the costs of the new infrastructure built for Meta risk falling on other customers. The environmental groups also say the high demand could ultimately strain the electricity grid. 

Entergy says their proposal won't hurt – and in fact will benefit – other ratepayers. It has stressed that the tech company will pay for a "large percentage of the costs" of the new generation, including the full annual revenue of the three plants over the 15-year deal.

But the life of one plant can be more than double the length of Meta's contract. The environmental groups want Entergy to extend its deal with Meta, which the utility rejects. Entergy, meanwhile, says that if Meta doesn't renew its contract beyond 15 years, the utility can still use the plants as they phase out older ones. 

What about renewable energy?

Meta has agreed to build 1,500 megawatts of solar power in Louisiana in connection with the data center, according to public filings. That's still short of the megawattage for the three new gas-fueled plants, which would produce pollution and climate-warming emissions. The environmental nonprofits also argue that Meta's commitment to green energy is not binding. 

LEUG, the industry group opposing the plan, meanwhile stresses that Entergy is prioritizing Meta over other customers in the queue looking to procure renewable energy.

The industry group has also been involved in a separate dispute with Entergy. LEUG wants its members to be able to buy their own power, including renewables, without going through the utility, which Entergy opposes. The PSC sided with Entergy in May in the years-long fight.

What happens next? 

The judge will issue a recommendation on the case in the coming weeks, but the five-member Public Service Commission can eventually vote as it pleases. It is expected to approve Entergy's plan this fall. Two of the commissioners – including the representative of the district where the data center will be located – have already voiced their support.

While the judge plays only an advisory role, opponents note that the public process remains useful in bringing to light potential issues with the plan. The commission also has the authority to add protections to the agreement. 

Other groups involved in the case that had been critical of the plan have since reached agreements with Entergy. 

Meanwhile, change is already sweeping Richland Parish. Entergy broke ground last month on a substation that did not require regulatory approval. Construction on the data center itself is already underway at the former agricultural site.

Meta expects the data center to be up and running by 2030, according to a company spokesperson.