Louisiana governor hails Meta’s plans for new AI facility as ‘largest private capital announcement’ in state
The facility is bringing hope that the company will bring much needed investment in an economically neglected corner of the state
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Louisiana Gov. Jeff Landry praised Meta’s plans to build a new artificial intelligence data center in the Pelican State, calling it the "largest private capital announcement."
"@Meta will establish a $10 billion Artificial Intelligence Optimized Data Center in North Louisiana," Landry wrote on X late Wednesday. "This is the largest private capital announcement EVER in our state! Today, Louisiana begins a new chapter."
Meta’s plans for the new center in northeast Louisiana are bringing hope that the $10 billion investment will transform an economically neglected corner of the state.
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Louisiana is among a growing number of states offering tax credits and other incentives to lure big tech firms seeking sites for energy-intensive data centers.
The Meta logo is seen at the Vivatech show in Paris, France, June 14, 2023. (AP Photo/Thibault Camus / AP Newsroom)
The U.S. Commerce Department found that there aren't enough data centers in the U.S. to meet the rising AI-fueled demand, which is projected to grow by 9% each year through 2030, citing industry reports.
Meta anticipates its Louisiana data center will create 500 operational jobs and 5,000 temporary construction jobs, said Kevin Janda, director of data center strategy. At 4 million square feet, it will be the company's largest AI data center to date, he added.
Signage outside Meta headquarters in Menlo Park, California, US, on Thursday, Feb. 1, 2024. Meta Platforms Inc. released earnings figures on February 1. (Photographer: David Paul Morris/Bloomberg via Getty Images / Getty Images)
"We want to make sure we are having a positive impact on the local level," Janda told The Associated Press.
Gov. Landry is not the only one touting the economic benefits. Congressional leaders and local representatives 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 historically reliant on agriculture. About one in four residents are considered to live in poverty and the parish has an employment rate below 50%, according to the U.S. census data.
But the optimism is lost on some environmental and affordable energy groups who are raising concerns around the facility’s energy usage.
Facebook's new rebranded logo, Meta, is seen on a smartphone in front of the displayed logo of Facebook, Messenger, Intagram, Whatsapp and Oculus. (REUTERS/Dado Ruvic/Illustration / Reuters Photos)
Meta plans to invest $200 million into road and water infrastructure improvements for the parish to offset its water usage. The facility is expected to be completed in 2030.
Entergy, one of the nation's largest utility providers, is fast-tracking plans to build three natural gas power plants in Louisiana capable of generating 2,262 megawatts for Meta's data center over a 15-year period — nearly one-tenth of Entergy's existing energy capacity across four states.
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The Louisiana Public Service Commission is weighing Entergy's proposal as some environmental groups have opposed locking the state into more fossil fuel-based energy infrastructure. Meta said it plans to help bring 1,500 megawatts of renewable energy onto the grid in the future.
The Associated Press contributed to this report.