The largest artificial intelligence data center ever built by Facebook parent Meta is coming to northeast Louisiana, the company said Wednesday, hoping the $10 billion facility will transform an economically neglected corner of the state. will give
Republican Gov. Jeff Landry called it a “game-changer” for his state’s expanding tech sector, yet some environmental groups have raised concerns over the center’s reliance on fossil fuels — and whether the new government will support it. Natural gas power plans can be high. Future energy bills for Louisiana residents.
Meanwhile, Elon Musk’s AI startup, xAI, is expanding its existing supercomputer project in Memphis, Tennessee, the city’s chamber of commerce said Wednesday. Chambers also said that Nvidia, Dell, and Supermicro Computer will “establish operations in Memphis,” without offering further details.
Louisiana is one of the growing number state Offering tax credits and other incentives to lure big tech firms seeking sites for energy-intensive data centers.
The U.S. Commerce Department found that the U.S. does not have enough data centers to meet growing AI-fueled demand, which is projected to grow 9% annually through 2030, citing industry reports.
Meta expects its Louisiana data center to create 500 operational jobs and 5,000 temporary construction jobs, said Kevin Janda, director of data center strategy. At 4 million square feet (370,000 square meters), it will be the company’s largest AI data center to date, he added.
“We want to make sure we’re making a positive impact at the local level,” Janda said.
Congressional leaders and local representatives from across the political spectrum hailed the Meta facility as a boon for Richland Parish, a rural part of Louisiana with a population of 20,000 historically dependent on agriculture. According to US Census data, one in four residents is considered to live in poverty and the parish has an employment rate of less than 50%.
Meta plans to invest $200 million in road and water infrastructure improvements for the parish to meet its water use. The facility is expected to be completed in 2030.
Entergy, one of the nation’s largest utility providers, plans to build three natural gas power plants in Louisiana capable of generating 2,262 megawatts for Meta’s data centers over a 15-year period — about Entergy’s current energy capacity. About a tenth. Four states.
The Louisiana Public Service Commission is weighing Entergy’s proposal as some environmental groups oppose locking the state into more fossil fuel-based energy infrastructure. Meta said it plans to help bring 1,500 megawatts of renewable energy on the grid in the future.
Louisiana residents could finally end up with rate hikes to pay for the operating costs of these natural gas power plants when Meta’s contract with Entergy expires, Jessica Hendricks, of the Alliance for Affordable Energy, an energy advocate. said the state policy director for the nonprofit organization Wally. the consumer
“There’s no reason that residential customers in Louisiana need to pay for a power plant for energy they’re not going to use,” Hendricks said. “And we want to make sure there are safeguards in place.”
Public Service Commissioner Foster Campbell, representing Northeast Louisiana, said he does not believe the data center will raise rates for Louisiana residents and considers it important to his region.
“It’s going to be one of the most desirable locations in Louisiana and probably one of the most desirable locations in the United States,” Foster said. “I’m 100% for it.”
Environmental groups have also warned about pollution from Musk’s AI data center in Memphis. The Southern Environmental Law Center, among others, says the supercomputer could overwhelm the power grid, drawing the attention of the Environmental Protection Agency. Eighteen gas turbines currently operating at xAI’s South Memphis facility are significant sources of ground-level ozone, known as smog, the group said.
Patrick Anderson, an attorney with the law center, said xAI has operated with “an incredible lack of transparency” in developing its South Memphis facility, which is located near a predominantly black neighborhood that has long been It deals with pollution and health risks from factories and other industries. sites.
“Memphians deserve to know how xAI will affect them,” he said, “and to have a seat at the table when these decisions are being made.”
