Entergy Gains Approval for Gas Plants to Power Meta's Louisiana Data Center

Entergy has secured approval to build three natural gas power plants to supply electricity to Meta's new data center in Louisiana. The data center, covering 4 million square feet, is designed to support Meta's advanced AI models and could consume up to 5 gigawatts annually. While Entergy claims that Meta will bear the costs, consumer advocacy groups argue that natural gas plants will increase electricity prices and pose health and environmental risks.

The Louisiana Public Service Commission (PSC) has approved Entergy's plan to build three natural gas power plants to supply electricity to Meta's new data center in Richland Parish. The decision, made at a meeting in Plaquemine, clears the way for the construction of the facilities, which are essential for Meta's $10 billion facility to proceed [1].

The data center, covering 4 million square feet, is designed to support Meta's advanced AI models and could consume up to 5 gigawatts annually. The PSC voted 4-1 in favor of the plan proposed by Entergy, with Commissioner Foster Campbell expressing strong support for the project. Commissioner Davante Lewis was the sole dissenter, citing unresolved questions about the agreement [1].

The approval was largely expected as Louisiana officials, including Gov. Jeff Landry, have welcomed the project as an economic development gamechanger in a long-struggling region of the state. However, the project has drawn criticism over its huge energy needs and potential impacts on ratepayers and the environment. Concerns were raised about rising gas prices, unclear job commitments, water demands, and environmental risks [1].

Meta’s data center will require roughly three times the amount of electricity that the city of New Orleans uses in a year, and increase Entergy's electric needs in the state by around 30%. Environmental advocacy groups and oil, gas, and petrochemical companies disputed Entergy’s request to build over $5 billion in new infrastructure, arguing that the plan risks increased bills for all types of ratepayers across the state [1].

The Louisiana Energy Users Group (LEUG) and the Alliance for Affordable Energy have been vocal opponents of the project. LEUG, composed of around 30 companies in the state, including Exxon, Shell, and Dow, collectively spend over $5.5 billion in the state each year on electricity and other services. They argue that the plan risks increased bills for ratepayers and that the potential benefits are speculative and uncertain [1].

The Alliance for Affordable Energy, along with the Union of Concerned Scientists, has warned of grid reliability and environmental risks associated with the new fossil fuel-powered gas plants. Entergy, however, maintains that its plan has enough protections in place to shield ratepayers and that the new generation will benefit its other customers [1].

Entergy's vice president of regulatory and public affairs, Larry Hand, described the agreement as a "balanced, carefully crafted deal" at the Wednesday meeting. However, the decision was made before a judge who oversaw a recent hearing on the case could release her legal recommendations [1].

The hearing process involving the judge is only intended to be informational, and the PSC is not required to wait for the judge's recommendations or abide by them. The commission's administrative law judge has sealed some of the filings, citing commercial sensitivity and proprietary information [3].

The vote occurred before the judge could release her legal recommendations, and the process has been criticized for being rushed. Some residents and advocacy groups have expressed concern about the lack of transparency and the potential impacts on ratepayers and the environment. However, Entergy and the majority of regulators agreed that the issues in the case have been thoroughly discussed, and there was no point in further delaying the project [1].

The approval of the power plants marks a significant step in the development of Meta's Louisiana data center. The project is expected to bring substantial economic benefits to the region, but it also raises concerns about energy costs and environmental impacts. As the project moves forward, it will be crucial for regulators and stakeholders to monitor its progress and ensure that the interests of ratepayers and the environment are protected [1].

References:
[1] https://www.nola.com/news/business/louisiana-meta-ai-data-center-power-electricity-environment/article_d4ec7a53-c022-4d5c-bc28-b0234d84e019.html
[2] https://www.wwno.org/coastal-desk/2025-08-19/louisiana-public-service-commission-to-vote-on-entergys-plan-to-power-new-meta-data-center
[3] https://lailluminator.com/2025/08/19/meta-power-plant-vote/