By: Jack Brook and Sophie Bates
The Associated Press//September 26, 2025//
Jack Brook and Sophie Bates
The Associated Press//September 26, 2025//
HOLLY RIDGE, La. 鈥 In a rural corner of Louisiana, Meta is building one of the world’s largest data centers 鈥 a聽$10 billion behemoth聽as big as 70 football fields that will consume more power in a day than the entire city of New Orleans at the peak of summer.
While the colossal project is impossible to miss in Richland Parish, a farming community of 20,000 residents, not everything is visible. For instance, it’s unclear exactly how much the social media giant will pay toward the cost 鈥 more than $3 billion 鈥 for new electrical infrastructure needed to power the facility.
Watchdogs have warned that in the rush to capitalize on the聽AI-driven data center boom, some states are allowing massive tech companies to direct expensive infrastructure projects with limited oversight.
Mississippi lawmakers allowed Amazon to bypass regulatory approval for energy infrastructure to serve two data centers it is spending聽$10 billion聽to build. In Indiana, a utility is proposing to create a data center-focused subsidiary that operates outside normal state regulations. And while Louisiana says it has added consumer safeguards, it lags other states in efforts to insulate regular power consumers from costs tied to data centers.
There is less transparency due to confidentiality agreements and rushed approvals, said Mandy DeRoche, an attorney for environmental advocacy group Earthjustice.
鈥淵ou can’t follow the facts; you can’t follow the benefits or the negative impacts that could come to the service area or to the community,鈥 she said.
Under contract with Meta, power company Entergy agreed to build three gas-powered plants that would produce 2,262 megawatts 鈥 equivalent to a fifth of Entergy’s current power supply in Louisiana. The Public Service Commission approved Meta’s infrastructure plan in August after Entergy agreed to bolster protections to prevent a spike in residential rates.
Nonetheless, nondisclosure agreements conceal how much Meta will pay.
Consumer advocates tried but failed to compel Meta to provide sworn testimony, submit to discovery and face cross-examination during a regulatory review. Regulators reviewed Meta’s contract with Entergy but were barred from revealing details.
Meta did not address AP’s questions about transparency, while Louisiana’s economic development agency and Entergy say nondisclosure agreements are standard to protect sensitive commercial data.
Davante Lewis 鈥 the only one of five public service commissioners to vote against the plan 鈥 said he’s still unclear how much electricity the center will use, if gas-powered plants are the most economical option and if the project will create the promised 500 jobs.
鈥淭here’s certain information we should know and need to know but don’t have,鈥 Lewis said.
Additionally, Meta is exempt from paying sales tax under a 2024 Louisiana law that the state acknowledges could lead to lost revenue totaling 鈥渢ens of millions of dollars or more each year.鈥
Meta has agreed to pay for about half the cost of building the power plants over 15 years, including cost overruns, but not maintenance and operation, said Logan Burke, executive director of the Alliance for Affordable Energy, a consumer advocacy group.
Public Service Commissioner Jean-Paul Coussan insists there will be 鈥渧ery little鈥 impact on ratepayers.
But watchdogs warn Meta could pull out of its contract or not renew it, leaving the public to pay for the power plants over the rest of their 30-year life span, and all grid users are expected to help pay for the $550 million transmission line serving Meta’s facility.
Ari Peskoe, director of Harvard University’s Electricity Law Initiative, said tech companies should be required to pay 鈥渆very penny so the public is not left holding the bag.鈥
Elsewhere, tech companies are not being given such leeway. More than a聽dozen states聽have taken steps to protect households and business ratepayers from paying for rising electricity costs tied to energy-hungry data centers.
Pennsylvania’s utilities commission is drafting a model rate structure to insulate customers from rising costs related to data centers. New Jersey’s utilities regulators are studying whether data centers cause 鈥渦nreasonable鈥 cost increases for other users. Oregon passed legislation this year ordering utilities regulators to develop new, and likely higher, power rates for data centers.
And in June, Texas implemented what it calls a聽鈥榢ill switch’ law聽empowering grid operators to order data centers to reduce their electrical load聽during emergencies.
Some Richland Parish residents fear a boom-and-bust cycle once construction ends. Others expect a boost in school and health care funding. Meta said it plans to invest in 1,500 megawatts of renewable energy in Louisiana and $200 million in water and road infrastructure in Richland Parish.
鈥淲e don’t come from a wealthy parish, and the money is much needed,鈥 said Trae Banks, who runs a drywall business that has tripled in size since Meta arrived.
In the nearby town of Delhi, Mayor Jesse Washington believes the data center will eventually have a positive impact on his community of 2,600.
But for now, the construction traffic is frustrating residents and property prices are skyrocketing as developers try to house thousands of construction workers. More than a dozen low-income families were evicted from a trailer park whose owners are building housing for incoming Meta workers, Washington said.
鈥淲e have a lot of concerned people 鈥 they’ve put hardship on a lot of people in certain areas here,鈥 the mayor said. 鈥淚 just want to see people from Delhi benefit from this.鈥
Editor’s note: Brook reported from New Orleans.