Meta could be just the first of Louisiana data centers
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Illustration: Brendan Lynch/Axios
When Meta announced it was building a $10 billion data center in Richland Parish, the news was met with fanfare from business leaders and concern from consumer advocates across the state.
Why it matters: It's the region's first data center, but it probably won't be the last.
The latest: There's already been "a ton" of interest from other potential data center projects for the state, Louisiana Economic Development chief innovation officer Josh Fleig tells Axios New Orleans.
- "We've proved that not only the sites work but the support and infrastructure and utilities [are here]. ... If I look at the pipeline of projects, I feel pretty good about at least one happening, probably more," he says.
Catch up quick: Meta announced its data center back in December, and it's since been a cornerstone project for Gov. Jeff Landry's administration as part of a plan to bring more diverse business to the state.
Friction point: The construction phase for data centers is typically their most lucrative for local workers.
- The massive Meta plant in Northeast Louisiana, for example, will employ about 5,000 construction workers at its peak, a press release says, but that number will drop to about 500 once it opens.
Between the lines: Artificial intelligence also requires loads of electricity to power the computing processes behind it, which has created a unique demand of the companies building these data centers while being a controversial aspect of their development.
- Still, it's led to new business in perhaps unexpected places.
- Companies "are hunting for huge swaths of flat land with access to natural gas and transmission lines, landing them on the doorstep of oil-and-gas country, including Louisiana's Haynesville Shale," Jennifer Hiller writes for the Journal.
Zoom in: Entergy plans to build three natural gas-powered plants to meet Meta's demand, which worries some advocates.
- If Meta's energy demand drops off, they say, then rate-payers could be left paying the bills for the expanded infrastructure.
The other side: "There's a number of things that we are working with Meta on to try to manage this concern," Entergy CEO Drew Marsh told the Wall Street Journal. "They want to be good neighbors too, and so they are helping us by essentially picking up the costs that they are causing."
What's next: Meta expects construction in Richland Parish to continue through 2030.