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Louisiana's $3B power upgrade for Meta project raises questions about who should foot the bill
Meta PlatformsMeta Platforms(US:META) TechXploreยท2025-09-25 08:39

Core Perspective - Meta is constructing a $10 billion data center in Louisiana, which will be one of the largest globally, raising concerns about the associated electricity infrastructure costs and regulatory oversight [3][4][5]. Infrastructure and Costs - The data center will require over $3 billion in new electricity infrastructure, with limited transparency regarding Meta's financial contributions [4][7]. - Entergy, the power company, has agreed to build three gas-powered plants generating 2,262 megawatts, which is about 20% of Entergy's current supply in Louisiana [7]. - Meta is exempt from paying sales tax under a new Louisiana law, potentially resulting in "tens of millions of dollars or more" in lost revenue for the state [10]. Regulatory Oversight - There are concerns about the lack of transparency and oversight in the approval process for Meta's infrastructure plan, with watchdogs highlighting the risks of private deals for public power supply [6][8]. - Consumer advocates have struggled to obtain detailed information about Meta's contracts and the potential impacts on local electricity rates [8][9]. Local Community Impact - Local residents have mixed feelings about the data center, with some fearing economic instability after construction ends, while others anticipate benefits such as increased funding for schools and healthcare [15][16]. - The construction has led to rising property prices and evictions of low-income families, raising concerns about the social impact on the community [16][17]. Comparison with Other States - Other states have implemented measures to protect consumers from rising electricity costs associated with data centers, such as Pennsylvania's model rate structure and Texas's 'kill switch' law [12][13][14].