Meta to build $10 billion AI data center in Louisiana as Elon Musk Expands in Tennessee
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Updated: December 12, 2024 @ 2:13 pm
FILE - The Meta logo is seen at the Vivatech show in Paris, France, June 14, 2023.
Meta's Expansion in Louisiana
The largest artificial intelligence data center ever built by Facebook’s parent company Meta is coming to northeast Louisiana, the company said Wednesday, bringing hopes that the $10 billion facility will transform an economically neglected corner of the state.
Republican Gov. Jeff Landry called it “game-changing” 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 plans for new natural gas power to support it could lead to higher energy bills in the future for Louisiana residents.
Meta anticipates its Louisiana data center will create 500 operational jobs and 5,000 temporary construction jobs. At 4 million square feet (370,000 square meters), it will be the company's largest AI data center to date.
Elon Musk's Expansion in Tennessee
Meanwhile, Elon Musk's AI startup, xAI, is expanding its existing supercomputer project in Memphis, Tennessee, the city's chamber of commerce said Wednesday. The chamber also said that Nvidia, Dell, and Supermicro Computer will be “establishing operations in Memphis.”
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 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.
Economic Impact and Concerns
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.
Entergy, one of the nation's largest utility providers, is fast-tracking plans to build natural gas power plants in Louisiana for Meta's data center. Some environmental groups have opposed this move, citing concerns over increased reliance on fossil fuels and potential rate hikes for Louisiana residents.
Louisiana residents may ultimately end up with rate increases to pay off the cost of operating these natural gas power plants when Meta's contract with Entergy expires.
Environmental Concerns
Environmental groups have also warned of the pollution generated by Musk's AI data center in Memphis. The Southern Environmental Law Center, among others, says the supercomputer could strain the power grid, prompting attention from the Environmental Protection Agency.
Memphians deserve to know how xAI will affect them and should have a seat at the table when these decisions are being made.
Patrick Anderson, an attorney at the law center, said xAI has operated with “a stunning lack of transparency” in developing its South Memphis facility, which is located near predominantly Black neighborhoods that have long dealt with pollution and health risks from factories and other industrial sites.
