NEW ORLEANS — The largest artificial intelligence data center ever built by Facebook parent Meta will be located in northeast Louisiana, the company announced Wednesday, raising 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 growing tech sector, but some environmental groups have raised concerns about the center’s reliance on fossil fuels — and whether new energy projects to support natural gas could lead to increased 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 would “establish operations in Memphis,” without providing further details.
Louisiana is one of a growing number of states offering tax credits and other incentives to attract large technology companies seeking sites for energy-intensive data centers.
The U.S. Commerce Department found that there are not enough data centers in the United States to meet growing AI-fueled demand, which is expected to grow 9% each year through 2030, citing industry reports.
Meta expects its Louisiana data center to create 500 operational 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 locally,” Janda said.
Congressional leaders and local officials across the political spectrum have hailed the Meta facility as a boon for Richland Parish, a rural part of Louisiana with a population of 20,000 historically dependent on agriculture. About one in four residents are considered living in poverty, and the parish has an employment rate below 50 percent, according to U.S. Census data.
Meta plans to invest $200 million in improving the parish’s road and water infrastructure to offset its water consumption. The installation is expected to be completed in 2030.
Entergy, one of the nation’s largest utilities, is accelerating plans to build three natural gas-fired power plants in Louisiana, capable of generating 2,262 megawatts for the Meta data center over a 15-year period, or nearly a tenth of Entergy’s existing energy capacity nationwide. four states.
The Louisiana Public Service Commission is evaluating Entergy’s proposal as some environmental groups have opposed locking the state into more fossil fuel-based energy infrastructure. Meta said it plans to help introduce 1,500 megawatts of renewable energy to the grid in the future.
Louisiana residents could ultimately be left with rate increases to pay for the cost of operating these natural gas power plants when Meta’s contract with Entergy expires, said Jessica Hendricks, policy director for the State for the Alliance for Affordable Energy, a Louisiana-based nonprofit that advocates for energy. consumers.
“There is no reason why residential customers in Louisiana should have to pay to a power plant for energy they are not going to use,” Hendricks said. “And we want to make sure there are safeguards in place.”
Public Service Commissioner Foster Campbell, representing Northeast Louisiana, said he doesn’t think the data center will raise rates for Louisiana residents and considers it vital to his region .
“This is going to one of the most needed places in Louisiana and maybe one of the most needed places in the United States of America,” Foster said. “I’m 100% for it.”
Environmental groups have also warned of pollution generated by Musk’s AI data center in Memphis. The Southern Environmental Law Center, among others, says the supercomputer could strain the power grid, which has drawn the attention of the Environmental Protection Agency. Eighteen gas turbines currently operating at xAI’s facilities south of Memphis are significant sources of ground-level ozone, better known as smog, the group said.
Patrick Anderson, an attorney at the law center, said xAI had operated with “a stunning lack of transparency” in developing its South Memphis facilities, located near predominantly black neighborhoods that have long faced pollution and health risks linked to factories and other industries. sites.
“The people of Memphis deserve to know how xAI will affect them,” he said, “and should have a seat at the table when these decisions are made.” »
_____
Sainz reported from Memphis, Tennessee. Associated Press writer Matt O’Brien in Providence, Rhode Island, contributed to this report.
_____
Brook is a corps member for The Associated Press/Report for America Statehouse News Initiative. Report for America is a nonprofit national service program that places journalists in local newsrooms to cover under-reported issues. Follow Brook on social platform X: @jack_brook96