In Holly Ridge, Louisiana, Meta is constructing one of the world's largest data centers, a $10 billion facility spanning as much area as 70 football fields. This enormous data center is projected to consume more electricity in a single day than the entire city of New Orleans during its peak summer months. Although the size of the project is evident in Richland Parish, which has a population of roughly 20,000, the details surrounding the financial obligations of Meta regarding the $3 billion in electricity infrastructure upgrades needed to support the facility remain obscured.
Regulatory oversight has become a concern as states rush to accommodate the burgeoning AI data center industry. For instance, Mississippi authorized Amazon to bypass regulatory approvals for energy infrastructure linked to two data centers it is developing at a cost of $10 billion. Similarly, in Indiana, utilities are creating a data center-focused subsidiary that operates outside typical state regulations. Although Louisiana claims to have implemented consumer safeguards, it is perceived as lagging compared to other states in safeguarding the interests of everyday power consumers against data center-related costs.
Mandy DeRoche, an attorney for Earthjustice, highlighted that the lack of transparency stems from confidentiality agreements and expedited approvals, making it difficult to assess both the benefits and potential negative impacts on the community. Concerns have been raised about private agreements dictating public power supply, particularly regarding a contract between Meta and Entergy, which has agreed to construct three gas-powered plants generating a total of 2,262 megawatts—about one-fifth of Entergy's current power supply in Louisiana. While the Public Service Commission gave its blessing to the infrastructure plan, details about Meta's financial commitment remain undisclosed due to nondisclosure agreements.
Consumer advocates attempted unsuccessfully to mandate Meta to provide sworn testimony or face cross-examination in regulatory hearings. Although regulators reviewed the contract, they were restricted from sharing specific terms. Meta has not responded to inquiries about its transparency, while both Louisiana's economic development agency and Entergy refer to nondisclosure agreements as standard practices to protect proprietary information.
Public Service Commissioner Davante Lewis, who was the sole dissenting vote on the plan, expressed uncertainty regarding the center's electricity consumption, the economic viability of gas plants, and the prospects of job creation. He noted, "There’s certain information we should know and need to know but don’t have."
Furthermore, a Louisiana law enacted in 2024 exempts Meta from sales taxes, potentially resulting in "tens of millions of dollars or more" in annual lost revenue. While Meta has agreed to cover about half the costs associated with the power plants over 15 years—including cost overruns—it will not be responsible for maintenance and operational costs. According to Logan Burke, executive director of the Alliance for Affordable Energy, this arrangement raises concerns that if Meta withdraws from or does not renew its contract, the public will be left to bear the financial burden of the power plants over their expected 30-year lifespan.
In contrast to Louisiana's approach, several other states are taking proactive steps to protect their residents from escalating electricity prices tied to data centers. Pennsylvania is crafting a model rate structure that aims to shield customers from these rising costs. Meanwhile, New Jersey is evaluating whether data centers unduly inflate costs for other utility users, and Oregon has enacted legislation requiring utilities to create more expensive rate structures specifically for data centers. Texas has also introduced a "kill switch" law to empower grid operators to reduce electrical loads from data centers during emergencies.
Residents in Richland Parish have mixed feelings about the arrival of Meta’s data center. Some express concern about the potential boom-and-bust cycles that could follow once construction concludes. On the other hand, there are expectations of increased funding for schools and health care services. Meta claims it plans to invest in 1,500 megawatts of renewable energy in Louisiana and $200 million in local water and road infrastructure. Trae Banks, a local drywall business owner, noted that his company has tripled in size due to Meta's presence.
However, the construction has also brought challenges, such as increased traffic and skyrocketing property prices that affect residents. Mayor Jesse Washington of nearby Delhi acknowledged the hardships faced by the community, particularly emphasizing the eviction of low-income families from a trailer park to make way for new housing for workers. "I just want to see people from Delhi benefit from this," the mayor stated, reflecting ongoing concerns about the impact of the project on local residents.
