Entergy Approved to Build 3 Natural Gas Plants for Meta's Louisiana Data Center

Entergy (ETR.US) has received approval from Louisiana's public utility regulatory body to construct three new natural gas power plants. The primary goal of this initiative is to supply electricity to Meta's (META.US) largest data center, which is situated in a rural area of Louisiana. This data center covers an expansive 400 million square feet (approximately 370,000 square meters) and is designed to support Meta's most advanced artificial intelligence (AI) models. At full capacity, the data center is projected to consume up to 5 gigawatts of electricity annually.

The urgency of this project was highlighted by Entergy's warning that any delays in approval could prompt Meta to relocate its data center to a competing state. In response, the Louisiana Public Service Commission expedited the approval process to ensure the project's timely completion. The escalating energy demands of AI are driving significant changes in the U.S. power grid, necessitating the development of new infrastructure to support energy-intensive data centers. This surge in demand has led to a sustained increase in electricity costs.

While Entergy's Louisiana subsidiary CEO, Phillip May, has stated that Meta will bear the costs associated with its energy projects, consumer advocacy groups have raised concerns. They argue that the construction of these natural gas power plants will not only drive up electricity prices but also pose risks to public health and the environment. Logan Burke, the executive director of the Alliance for Affordable Energy, criticized the regulatory body for prioritizing the interests of tech giants and Entergy's profits over the concerns of consumers. Burke emphasized that the project will inevitably increase residential electricity bills and strain water resources.

Entergy has also announced plans to build new transmission lines to supply power to the data center and to procure up to 1.5 gigawatts of solar energy capacity. This move aligns with the growing trend of integrating renewable energy sources into the power grid to mitigate the environmental impact of data centers. The approval of these new power plants marks a significant step in meeting the energy demands of Meta's data center, which is crucial for the operation of its advanced AI models. The project underscores the broader challenge of balancing the need for reliable and abundant energy with the imperative to protect the environment and public health.