NEW ORLEANS (AP) — The largest artificial intelligence data center ever built by Facebook’s parent company Meta is coming to northeast Louisiana, the company said Wednesday, raising hopes that the $10 billion facility will be an economic one will transform a neglected part of the state.
Republican Gov. Jeff Landry called it “game-changing” for his state’s expanding tech sector, yet some environmental groups have raised concerns about the center’s reliance on fossil fuels — and whether plans for recent natural gas energy to support it could result in higher future energy bills for Louisiana residents.
Meanwhile, Elon Musk’s AI startup xAI is expanding its existing supercomputer project in Memphis, Tennessee, the city’s Chamber of Commerce said Wednesday. The chamber also said Nvidia, Dell and Supermicro Computers would “establish operations in Memphis,” without providing further details.
Louisiana is among a growing number of states offering tax credits and other incentives to attract gigantic technology companies seeking sites for energy-intensive data centers.
The U.S. Department of Commerce, citing industry reports, found that there are not enough data centers in the U.S. to meet increasing AI-powered demand, which will grow 9% each year through 2030.
Meta expects its data center in Louisiana to create 500 operational jobs and 5,000 short-lived construction jobs, said Kevin Janda, director of data center strategy. At 4 million square feet (370,000 square meters), it will be the company’s largest AI data center to date, he added.
“We want to make sure we have a positive impact on the local level,” Janda said.
Congressional leaders and local officials from across the political spectrum heralded the meta-facility as a boon for Richland Parish, a rural part of Louisiana with a population of 20,000 that has traditionally relied on agriculture. According to U.S. Census data, about one in four residents lives in poverty and the community’s employment rate is less than 50%.
Meta plans to invest $200 million to improve the community’s road and water infrastructure to offset water operate. The facility is scheduled to be completed in 2030.
Entergy, one of the nation’s largest utilities, is moving forward with plans to build three natural gas power plants in Louisiana that can generate 2,262 megawatts over 15 years for Meta’s data center – nearly a tenth of Entergy’s existing energy capacity in four states.
The Louisiana Public Service Commission is weighing Entergy’s proposal as some environmental groups oppose tying the state to a more fossil fuel-based energy infrastructure. Meta said it wants to lend a hand bring 1,500 megawatts of renewable energy online in the future.
If Meta’s contract with Entergy expires, Louisiana residents could ultimately see rate increases to cover the operating costs of these natural gas power plants, said Jessica Hendricks, state policy director for the Alliance for Affordable Energy, a Louisiana-based nonprofit that advocates for energy consumers.
“There is no reason residential customers in Louisiana should have to pay for a power plant for energy they don’t use,” Hendricks said. “And we want to make sure that safety precautions are in place.”
Public Service Commissioner Foster Campbell, who represents northeast Louisiana, said he does not believe the data center will enhance rates for Louisiana residents and considers it vital to his region.
“It’s taking place in one of the most needed places in Louisiana and perhaps one of the most needed places in the United States of America,” Foster said. “I’m 100% for it.”
Environmental groups have also warned about the pollution caused by Musk’s AI data center in Memphis. The Southern Environmental Law Center, among others, says the supercomputer could put a strain on the power grid, drawing the attention of the Environmental Protection Agency. Eighteen gas turbines currently running at the xAI plant in south Memphis are significant sources of ground-level ozone, more commonly known as smog, the group said.
Patrick Anderson, an attorney at the Law Center, said xAI has done “amazing things” in developing its South Memphis facility, which is near predominantly black neighborhoods that have long struggled with pollution and health risks from factories and other industries Lack of transparency” worked websites.
“Memphis residents deserve to know how xAI impacts them,” he said, “and should have a seat at the table when these decisions are made.”
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Sainz reported from Memphis, Tennessee. Associated Press writer Matt O’Brien in Providence, Rhode Island, contributed to this report.
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Brook is a corps member for the Associated Press/Report for America Statehouse News Initiative. Report for America is a nonprofit national service program that places journalists in local newsrooms to report on undercovered issues. Follow Brook on social platform X: @jack_brook96
