Louisiana fast-tracks gas plants for Meta’s AI hub amid grid and cost debates

Louisiana regulators have given the green light to a controversial power plan for Meta’s $10 billion artificial intelligence data center in rural northeast Louisiana, marking a significant step in the company’s push to establish a major AI hub. The Public Service Commission approved the proposal with a 4-1 vote, allowing Entergy to move forward with construction of three natural gas-fired power plants to supply the massive facility. The decision was fast-tracked from its originally scheduled October date, reflecting the political and economic weight the project carries for the state.

The data center, located on a 2,250-acre state-owned site, will require approximately 2,500 megawatts of electricity—nearly three times the annual usage of New Orleans. This energy demand will increase Entergy’s electricity needs in the state by around 30%. Entergy plans to build two power plants near the data center in Richland Parish and a third in St. Charles Parish. The company argues that this approach ensures grid stability and avoids overloading the existing infrastructure, a common issue in other states where data centers simply add load to the grid without additional generation.

The project has drawn sharp debate over cost distribution and environmental impact. Critics, including the Louisiana Energy Users Group and the Alliance for Affordable Energy, have raised concerns that ratepayers may eventually shoulder some of the project’s costs. The new power plants are expected to cost around $5 billion, with Entergy also investing in a $550 million transmission line to support the facility. Opponents argue that the long lifespan of gas-fired plants—up to 40 years—poses a financial risk if Meta were to leave after its 15-year energy contract ends, potentially leaving ratepayers to cover operational costs.

Supporters, however, emphasize the economic benefits for a region that has long struggled with high poverty and unemployment rates. The project is projected to create 6,500 construction jobs and up to 500 permanent jobs once operational. Local officials, including Gov. Jeff Landry and regional economic development leaders, have welcomed the investment as a transformative opportunity for the area. Rob Cleveland of the economic development authority in northeast Louisiana described the impact as "exponential growth" for small businesses, already evident from early construction activity.

Meta has committed to developing 1,500 megawatts of renewable energy in partnership with Entergy, though this provision is not legally binding. The company’s representative, Ashley Settle, stated that the location was chosen for its infrastructure, workforce, and grid reliability. Entergy’s CEO, Phillip May, added that the project will reinforce the state’s energy grid, create economic opportunities, and support a more sustainable energy future.

The approval process has been marked by secrecy and allegations of backdoor deals. Some key details, including energy load estimates and cost projections, were filed under seal by the administrative law judge handling the case. While Entergy insists these are commercially sensitive, opponents argue that the lack of transparency undermines public accountability. The Alliance for Affordable Energy has called for a delay in the vote, warning of potential grid reliability issues and environmental risks tied to the gas-powered plants.

Ultimately, the decision reflects a broader national trend of energy-intensive data center projects being supported by state governments in exchange for economic development promises. Louisiana’s approval sets a precedent for how large-scale AI infrastructure is being funded and regulated, with implications for future projects in the U.S.

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[1] Louisiana approves power plan for giant Meta AI data center (https://www.nola.com/news/business/louisiana-meta-ai-data-center-power-electricity-environment/article_d4ec7a53-c022-4d5c-bc28-b0234d84e019.html)

[2] La. regulators approve Entergy power plants for Meta's AI (https://www.kplctv.com/2025/08/21/entergy-la-gets-green-light-plant-power-metas-ai-data-center/)

[3] Entergy power plant for Meta data center moves toward (https://lailluminator.com/2025/08/19/meta-power-plant-vote/)