Meta, Facebook’s parent company, announced on Wednesday plans to invest $10 billion in constructing an AI-focused data center in Louisiana, set to be the company’s largest data facility globally. The hyperscale data center, planned for Richland Parish, will be designed to handle massive data volumes needed to support digital infrastructure, including artificial intelligence operations. The facility will be powered by natural gas-fired power plants, expected to deliver a combined capacity of 2.2 gigawatts, according to Entergy, the utility partnering with Meta.
The company expects the facility to employ 500 people directly and another 1,000 indirect jobs, boosting local employment. Meta Director of Data Center Strategy Kevin Janda called the project “an incredible win for Louisiana, Richland Parish, and our entire rural northeast region.” Meta has committed to investing $200 million in improving local infrastructure, like roads and water systems, at the 2,250-acre site. It is also expected to hire 5,000 workers at peak construction through 2030. Meta has pledged to match 100% of the data center’s electricity use with clean and renewable energy, aligning with its sustainability goals. Entergy will supply that power, leveraging the firm’s expertise in the sustainable development of large-scale infrastructure projects.
The partnership will boost the company’s revenue through a long-term power purchase agreement. It will also help the utility to meet rising energy demand, bolstering its earnings visibility. It will also allow it to expand its presence in the renewable energy market, potentially expanding its appeal to environmentally conscious investors.
Moreover, the partnership will help Entergy gain more business from the growing tech sector by providing access to a new customer base and increasing the revenue potential of its existing infrastructure, such as its nuclear plants. However, the lengthy construction timeline through 2030 could delay realizing the financial benefits. The potential challenges in sourcing enough renewable energy to serve the data center’s needs could prove significant.
The project is expected to catalyze further investments in northeast Louisiana and strengthen the state’s position as a global leader in technology and AI. The investment is also expected to create jobs and provide additional opportunities for students in the area. Superintendent Sheldon Jones of Richland Parish Schools, where one in four lives below the poverty line, said his district is already preparing its students for the opportunities available at Meta’s data center when it is completed in 2030. Jones and school administrators have partnered with the company to set up internships, apprenticeships, and job fairs. The district also partners with Meta to advance STEAM education and promote digital skills.
