Mixed Reactions Emerge Over Approval of Gas Power Plants at Meta’s $10B Data Center

Meta has selected Louisiana as the site for its largest data center to date, having reached an agreement with Entergy to provide power from three major natural gas facilities. A state regulator gave the green light to Entergy’s plans yesterday evening.

These facilities are expected to be operational by 2028 and 2029, collectively generating 2.25 gigawatts of electricity. As the AI data center grows, its overall power demand may soar to 5 gigawatts.

This power plant plan has sparked controversy among Louisiana residents.

A related industry group is concerned that Meta and Entergy might receive favorable treatment for a subsequent phase of the data center initiative, which involves developing 1.5 gigawatts of solar power across the state, as reported by the Louisiana Illuminator. This organization was formed by major companies such as Dow Chemical, Chevron, and ExxonMobil, which encountered difficulties in obtaining renewable energy for their own operations.

Another issue raised is that Meta’s agreement with Entergy spans 15 years, and at least one member of the Louisiana Public Service Commission has warned that ratepayers could face financial burdens once the contract ends. Generally, natural gas power plants have operational lives of 30 years or more.

Furthermore, large-scale energy projects frequently go over budget, as pointed out by the Union of Concerned Scientists, leaving ratepayers liable for the additional expenses. Additionally, the construction of a $550 million transmission line to the data center will also be financed by ratepayers, the organization highlighted.

While Meta has been actively investing in renewable energy, evidenced by a recent 100-megawatt acquisition, its dependence on natural gas facilities complicates its goal to achieve net zero emissions by 2030, effectively locking in carbon emissions for many years. To mitigate its emissions, Meta will need to purchase credits from carbon offset initiatives.

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