To anyone paying attention, Meta’s latest announcement about a second massive data center, “Project Evest,” in Richland Parish shouldn’t come as a surprise.
But it raises the question: was this the plan all along?
The Louisiana Public Service Commission already approved three $3.2 billion gas power plants in August, for Meta’s first data center, “Project Hyperion.”
Only seven months later, Meta announced its plans for the gargantuan expansion, Project Evest. With it comes a staggering increase in energy demand. To power Evest, Entergy Louisiana is asking LPSC regulators for permission to build an additional seven gas power plants. That’s on top of the three already approved for Hyperion last year. Altogether, the 10 plants represent an increase equal to roughly a third of Louisiana’s current electrical grid, Fortune magazine reported.
To serve a single customer — Meta — we’re talking about 10 new gas power plants, and more than $16 billion in new fossil fuel infrastructure, and over 7,000 megawatts of power. That’s nearly seven times the power the city of New Orleans uses during the height of summer. Not to mention the huge amount of water that will also be needed for power generation and equipment cooling — up to 5 million gallons each day, roughly the amount needed by a town of 30,000 to 50,000 residents.
It’s a massive escalation. The scale alone should give regulators, and the public, pause.
Because these aren’t short-term investments.
Bills that continue long after Meta’s contracts expire
While Meta has promised to cover certain upfront costs of building this new infrastructure, there are costs that continue long after they’re built. Gas plants are built to last 30 to 40 years.
All of Entergy Louisiana’s customers will pay for decades of maintenance, fuel costs, and other operation expenses for the gas plants.
The current agreement with Meta, for Hyperion, only lasts 15 years. And the latest proposal only lasts 20. That leaves Louisiana customers on the hook for any remaining costs during the lifespan of the gas plants. Think of it like a mortgage. Meta has made an upfront payment, but just like with your mortgage, that’s only the beginning, not the end.
Which brings us to the central promise being used to justify all of this: that Entergy Louisiana customers will somehow benefit.
Meta and Entergy have pointed to the upfront investments, charitable contributions, and other payments that the companies say add up to $2 billion in savings.
But if you look beyond the headlines, those assurances start to feel a lot less concrete. The reality is we don’t have a way to verify those claims about benefits because the agreements between Entergy and Meta are being kept secret from the public.
Look at what’s happening in the Northeast with data centers that are operational. Residents in areas near data centers in Virginia and Maryland are reporting 80% increases in their electricity bills.
When you try to follow the money, these statements by Meta and Entergy start to feel a lot more like pinky promises than enforceable guarantees that will hold up 15 years down the road.
Meta signing ‘Frankenstein financing’
We’re in an era of rapidly shifting AI partnerships and investments where major companies like Disney are backing out of high-profile agreements as quickly as they’re entering them. That kind of volatility matters when you’re talking about fossil fuel infrastructure that will be on the books — and potentially our utility bills — for decades.
Meta itself seems to acknowledge that risk and has taken steps to shield itself from it. Through a financial agreement with Blue Owl that the Wall Street Journal dubbed “Frankenstein financing,” — because the deals stitch together risky elements of finance designed to quickly move debt off the company’s books — Meta could walk away from the project in as little as four years.
But Louisiana families and small businesses don’t get to walk away from their utility bills and any costs not covered by Big Tech.
At the same time, Blue Owl is facing financial troubles, raising questions about who really owns the data centers and who picks up the bill if the investors go bankrupt and Meta walks away.
And the risks don’t stop there. Residents near the Hyperion facility under construction in Richland have already been reporting brown water, random power outages, and noise and danger from construction vehicles.
Economic development should not come at the expense of the health, safety, and financial security of Louisiana communities.
The Louisiana Public Service Commission recently adopted an expedited review process — known as the “Lightning Directive” — designed to fast-track projects like this. But speed comes at a cost.
At a bare minimum, this unprecedented proposal demands a full, transparent review. One that allows regulators the time to ask the hard questions and gives communities real opportunities to be informed upfront and to weigh in.
Because once these plants are built, the consequences won’t be hypothetical.
Alaina DiLaura is the LPSC Policy Coordinator for the Alliance for Affordable Energy.
Emma Meyerkopf is the Communications Manager for the Alliance for Affordable Energy.
