The largest artificial intelligence data center ever built by Facebook parent 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 a “game changer” for his state’s expanding tech sector, but some environmental groups have raised concerns about the center’s reliance on fossil fuels — and whether plans for new natural gas-powered energy to support it could lead to to higher energy bills in the future 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 announced Wednesday. The chamber also said Nvidia, Dell and Supermicro Computer will “establish operations in Memphis,” without offering further details.
Louisiana is among a growing number of the state offering tax breaks and other incentives to attract large technology companies looking for sites for energy-intensive data centers.
The US Department of Commerce found that there are not enough data centers in the US to meet the increasing demand driven by artificial intelligence, which is projected to grow by 9% each year until 2030, citing industry reports.
Meta anticipates its Louisiana data center will create 500 operations 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 have a positive impact at 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 that has historically relied on agriculture. About one in four residents are considered to be living in poverty, and the parish’s employment rate is below 50%, according to US Census data.
Meta plans to invest $200 million in road and water infrastructure improvements for the parish to offset water consumption. The facility is expected to be completed in 2030.
Entergy, one of the nation’s largest utility providers, is fast-tracking plans to build three natural gas-fired power plants in Louisiana that could generate 2,262 megawatts for the Meta data center over a 15-year period — nearly one-tenth of Entergy’s existing energy capacity across the four states.
The Louisiana Public Service Commission is considering Entergy’s proposal as some environmental groups have opposed locking the state into a more fossil-fuel-based energy infrastructure. Meta said it plans to help bring 1,500 megawatts of renewable energy into the grid in the future.
Louisianans could ultimately end up seeing rate hikes to pay for the cost of operating these natural gas plants when Meta’s contract with Entergy expires, said Jessica Hendricks, director of state policy for the Alliance for Affordable Energy, a Louisiana-based nonprofit that advocates for energy consumers.
“There’s no reason why private customers in Louisiana should have to pay a power plant for power they won’t use,” Hendricks said. “And we want to make sure there are safeguards in place.”
Public Service Commissioner Foster Campbell, who represents Northeast Louisiana, said he doesn’t believe the data center will raise rates for Louisiana residents and sees it as vital to his region.
“It’s going to one of the neediest places in Louisiana and maybe one of the neediest places in the United States of America,” Foster said. “I’m for it 100%.”
Environmental groups have also warned of pollution from Musk’s AI data center in Memphis. The Southern Environmental Law Center, among others, says the supercomputer could strain the power grid, drawing attention from the Environmental Protection Agency. Eighteen gas turbines currently operating at xAI’s South Memphis facility are significant sources of ground-level ozone, better known as smog, the group said.
Patrick Anderson, an attorney at the law center, said xAI operated with a “staggering lack of transparency” in developing its South Memphis facility, which is located near predominantly black neighborhoods that have long faced pollution and health risks from factories and other industries. objects. pages.
“Memphians deserve to know how xAI will affect them,” he said, “and should have a seat at the table when these decisions are made.”
