Meta set to develop the largest AI data center right in Louisiana 

In December 2024, Meta, the social media company that owns major platforms like Facebook, Instagram and WhatsApp, announced that it had chosen Richland Parish, Louisiana, as the home to its newest $10 billion artificial intelligence data center. Today, the data center will be built on 2,250 acres, and it is going to be the largest data center in the Western Hemisphere, 4 million square feet, to be exact. 

The Louisiana Economic Development (LED), states that the Meta AI data center will support 500 or more new jobs in Richland Parish, and LED estimates it will create 1,000 or more indirect jobs. 

These types of data centers need enormous amounts of land, electricity and water, but don’t necessarily employ many people. Richland Parish was chosen for the unique circumstances in which the land was presented to Meta. 

Louisiana purchased about 1,700 football fields of land in 2006, hoping to get the attention of an automotive plant, but was unsuccessful. Gov. Jeff Landry signed into law a 20-year sales tax exemption for data centers built before 2029, six months after taking office. 

Meta chose Louisiana because it had a huge ready-to-build site, access to power through Entergy and state tax exemption incentives. 

In an interview with CNBC, Landry explained that the deal with Meta would not exist without the tax exemption bill. 

“I’m a business guy,” explained Landry. “What we know is when you look at the overall comprehensive package here, it’s in the black. For the local government, and the state, and how you get to the bottom line is irrespective to me.” 

The Legislative Fiscal Office has stated that they find that the tax incentives could cost the state “tens of millions of dollars or more each year, possibly through (fiscal year) 2059.” 

The new data center will use more electricity than New Orleans on a peak day. To meet that demand, utility company Entergy will build three new gas power plants. Entergy has planned to invest $3.2 billion in upfront construction costs. 

Secretary of LED, Susan Bourgeois, has stated that the benefits of the data center outweigh the costs and that it “wasn’t about what the state would win or lose…. we want to compete with Texas. We want to compete with Mississippi, Alabama, Georgia, South Carolina, all our Southern neighbors.” 

While politicians, investors and stakeholders have shown great optimism, some critics do not share those sentiments. 

When Gov. Landry signed the sales tax exemption into law, it was not disclosed that Meta was interested in building in Louisiana or that a tax exemption was a non-negotiable with the social media giant. 

Meta operated through an affiliate known as Laidley, LLC, with a development known as “Project Sucre,” so there were no clear ties to their new data center in Louisiana prior to their official announcement. 

Bourgeois stated, “The Meta folks made it clear to us from day one that in order for a project like this to happen in any state, that exemption or rebate – whatever the formula is – has to exist.” 

Louisiana citizens also worry that with the current unstable Entergy power grid, adding such a huge energy consumer, like a data center, would compromise the state’s power grid and increase electricity rates. 

Jackson Voss, Climate Policy Coordinator for the Alliance for Affordable Energy, stated, “…we’re still facing the same vulnerabilities that we were before, but now with a huge new data center added on.” 

Another concern is that, over time, Entergy would recover its $3.2 billion investment by charging customers for electricity. 

A point of pride of those in favor of the data center is the opportunity to create jobs. Critics say that those jobs are not all long-term, and the numbers get inflated due to the number of construction workers needed to construct the center, not run it. Critics say that the center would only create 500 long-term jobs. 

Gov. Landry replied to that criticism and said, “I’ll take it. Five jobs was a big deal in this area. I don’t know where the people are who complain about 500 jobs, but I’ll take them in Louisiana. We will take every job we can get.” 

Meta has promised to invest in local schools and organizations, and once the data center is operational, they will launch their annual Community Action Grants program. They are also partnering on a water restoration project that will improve water quality and investing in a community organization that would work to address water challenges in the Mississippi River Basin. 

LED states that Meta is expected to take advantage of Louisiana’s tax incentive program, which offers qualifying projects a state and local sales and use tax rebate on the purchase or lease of data center equipment. 

Grow Northeast Louisiana (NELA) President and CEO Rob Cleveland said, “Meta chose northeast Louisiana because of the availability of reliable, low-cost energy: access to flat, developable land and a business-friendly environment led by Governor Landry. This project opens the floodgates for data center development in Louisiana, and we are prepared for what’s ahead.” 

Bourgeois has similar sentiments and stated, “I could try to sell Louisiana to the world for a long time, the fact that [Meta] chose us makes my job a lot easier.” 

The data center is set to be fully functional by 2030.