Meta to build $10 billion AI data center in Louisiana as Elon Musk Expands Supercomputer Project
Tuesday, February 04, 2025
The largest artificial intelligence data center ever built by Facebook's parent company Meta is coming to northeast Louisiana, the company said yesterday, 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.
Expansion of xAI Supercomputer Project
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," without offering further details.
Growing Trend in Tech Industry
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 US Commerce Department found that there aren't enough data centers in the US to meet the rising AI-fueled demand, which is projected to grow by 9% each year through 2030, citing industry reports.
Job Creation and Economic Impact
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 (370,000 square meters), it will be the company's largest AI data center to date. "We want to make sure we are having a positive impact on the local level," Janda said.
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, according to the US census data. The parish's unemployment rate was 4.6% last year, according to the US Bureau of Labor Statistics.
Environmental Concerns and Renewable Energy
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. 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.
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, said Jessica Hendricks, state policy director for the Alliance for Affordable Energy, a Louisiana-based nonprofit advocating for energy consumers.
Community Impact and Future Plans
Public service commissioner Foster Campbell, representing northeast Louisiana, said he does not believe the data center will increase rates for Louisiana residents and views it as vital for his region. 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.
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. Eighteen gas turbines currently running at xAI's south Memphis facility are significant sources of ground-level ozone, better known as smog, the group said.
