Meta faces scrutiny over costs of its massive Louisiana data center

In a rural part of Louisiana, Meta is in the process of building a significant data center investment worth $10 billion. This facility will be as large as 70 football fields and has a projected energy consumption surpassing the electrical demand of New Orleans during peak summer months. While the data center’s construction has garnered attention for its size, questions remain about the financial responsibilities associated with the new electricity infrastructure estimated to exceed $3 billion. A power company, Entergy, has agreed to construct gas-powered plants to meet the energy demands of this center under a contract with Meta, which includes a commitment to cover about half the construction costs over 15 years. However, Meta will not be responsible for ongoing maintenance and operational costs, raising concerns from consumer advocates over potential long-term financial implications for the public. Critics also argue that Meta's agreement lacks transparency, with worries that the company might withdraw from the contract, leaving consumers to shoulder the financial burden of the power plants. Various states have introduced measures to protect local ratepayers from increased costs due to data centers, highlighting the state of Louisiana's comparatively slower progress in safeguarding consumers. In addition to the energy infrastructure, Meta has committed to making substantial investments in renewable energy and local infrastructure projects, but community leaders express mixed feelings about the data center's impact on local residents. Overall, this situation encapsulates a growing tension between technological development and consumer protection in the energy sector, with significant implications for local communities.