Meta, the parent company of Facebook, is set to construct its largest artificial intelligence (AI) data center in northeast Louisiana, a $10 billion project aimed at revitalizing the region’s economy. This announcement has sparked optimism among local leaders, though environmental groups have expressed concerns about the facility's reliance on natural gas energy and its potential impact on residents’ utility costs.
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Republican Governor Jeff Landry described the project as transformative for Louisiana’s growing technology sector. Located in Richland Parish, the facility is expected to generate 500 permanent jobs and 5,000 temporary construction jobs. Meta also plans to invest $200 million in local road and water infrastructure improvements to support the community.
The center, which will span 4 million square feet, is expected to be operational by 2030. To power the facility, utility company Entergy has proposed building three natural gas power plants capable of generating 2,262 megawatts over 15 years, nearly 10% of its current energy capacity. However, environmental advocates worry this could lock Louisiana into long-term dependence on fossil fuels and lead to higher electricity rates once Meta’s contract with Entergy ends.
Jessica Hendricks of the Alliance for Affordable Energy criticized the plan, warning that residents could bear the financial burden. In response, Public Service Commissioner Foster Campbell assured that the data center would not lead to rate hikes and emphasized its significance for an economically disadvantaged region.
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Meanwhile, Elon Musk's AI venture, xAI, is expanding its Memphis, Tennessee, supercomputer facility. The Memphis Chamber of Commerce reported that Nvidia, Dell, and Supermicro Computer are also establishing operations in the city, though further details were not disclosed.
Environmental groups have raised concerns about the environmental impact of Musk’s facility, which operates gas turbines contributing to smog in South Memphis, a predominantly Black area already burdened by industrial pollution. Critics have called for more transparency from xAI and greater community involvement in decision-making.
Both projects highlight the growing demand for AI-driven infrastructure, as a U.S. Commerce Department report forecasts a 9% annual increase in AI-related data center needs through 2030. However, the environmental and social implications of these developments continue to draw scrutiny.