NEW ORLEANS (AP) — The largest artificial intelligence data center ever built by Facebook’s parent company Meta is coming to northeast Louisiana, the company said Wednesday, raising hopes that the $10 billion facility will transform an economically neglected corner of the state will transform.
Republican Gov. Jeff Landry called it “game-changing” for his state’s growing tech sector, but some environmental groups have still raised concerns about the amount of energy it would use — and whether it could lead to higher energy bills in the future.
Meanwhile, Elon Musk’s AI startup xAI is expanding its existing supercomputer project in Memphis, Tennessee, the city’s Chamber of Commerce said Wednesday. The chamber also said Nvidia, Dell and Supermicro Computer “will establish operations in Memphis,” without providing further details.
Trusted news and daily treats, straight to your inbox
See for yourself: The Yodel is the source for daily news, entertainment and feel-good stories.
Louisiana is among a growing number of states trying to lure big tech companies in need of energy-intensive data centers with tax breaks and other incentives.
The US Department of Commerce has determined that there are not enough data centers in the US to meet rising AI-driven demand, which is expected to grow 9% annually through 2030, citing industry reports.
Meta expects the Louisiana data center to create 500 operations jobs and 5,000 temporary construction jobs, said Kevin Janda, director of data center strategy. At 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 at the local level,” Janda said.
Congressional leaders and local representatives from across the political spectrum heralded the Meta Facility as a boon to Richland Parish, a rural part of Louisiana with a population of 20,000 people historically dependent on agriculture. According to U.S. census data, about one in four residents live in poverty and the parish has a labor force participation rate of less than 50%.
Meta plans to invest $200 million in road and water infrastructure improvements for the parish to offset water use. The facility is expected to be ready in 2030.
Entergy, one of the nation’s largest energy providers, is building three natural gas power plants in Louisiana that could generate 2,262 megawatts over 15 years for Meta’s data center—nearly one-tenth of Entergy’s existing energy capacity across four power stations. states.
The Louisiana Public Service Commission is considering Entergy’s proposal as some environmental groups oppose locking the state into a more fossil fuel-based energy infrastructure. Meta said it plans to bring 1,500 megawatts of renewable energy to the grid in the future.
Louisiana residents could ultimately end up with rate increases to pay off the operating costs of these natural gas plants when Meta’s contract with Entergy expires, said Jessica Hendricks, state policy director 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 for a power plant for energy they are not going to use,” Hendricks said. “And we want to make sure that precautions are in place.”
Public Services Commissioner Foster Campbell, who represents northeastern Louisiana, said he does not believe the data center will increase rates for Louisianans and views it as essential to his region.
“It’s going to one of the most needed places in Louisiana and perhaps one of the most needed places in the United States of America,” Foster said. “I’m 100% for it.”
Environmental groups have also warned about the pollution caused by Musk’s AI data center in Memphis. The Southern Environmental Law Center, among others, says the supercomputer could strain the power grid, drawing the attention of the Environmental Protection Agency. Eighteen gas turbines currently operating at the XAI plant in south Memphis are significant sources of ground-level ozone, commonly known as smog, the group said.
Patrick Anderson, an attorney at the law center, said xAI has operated with “a stunning lack of transparency” in developing its South Memphis facility, which is located near predominantly Black neighborhoods that have long suffered from pollution and health risks from factories and other industrial activities. sites.
“Memphians deserve to know how xAI will impact 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 report on undercovered issues. Follow Brook on social platform X: @jack_brook96
