gas power plants approved for meta’s $10b data center, and not everyone is happy

Meta's Louisiana Data Center Receives Power Plant Approval

Meta’s decision to locate its largest data center in Louisiana involved an agreement with Entergy for power provision through three substantial natural gas facilities. Approval for Entergy’s plans was granted by a state regulator yesterday evening.

Power Generation Capacity

These power plants are anticipated to begin operation in 2028 and 2029. Upon reaching full capacity, they will produce 2.25 gigawatts of electrical power. The AI data center itself could eventually require up to 5 gigawatts as it undergoes expansion.

Controversy Surrounding the Project

The power plant project has sparked debate among residents of Louisiana.

Concerns Regarding Renewable Energy Access

A group representing various industries has voiced concerns about potential preferential treatment for a subsequent phase of the data center project. This phase involves the construction of 1.5 gigawatts of solar power capacity throughout the state, as reported by the Louisiana Illuminator.

The group, comprised of major corporations like Dow Chemical, Chevron, and ExxonMobil, was formed due to difficulties these companies faced in securing renewable power for their own operations.

Long-Term Cost Implications

A key point of contention is the 15-year duration of Meta’s contract with Entergy. At least one member of the Louisiana Public Service Commission has expressed apprehension that Louisiana ratepayers may ultimately bear the financial burden once the agreement expires.

Natural gas power plants generally have operational lifespans of 30 years or more.

Potential for Cost Overruns

According to the Union of Concerned Scientists, large-scale power projects frequently exceed their initial budgets. In such cases, ratepayers often end up covering the additional costs.

Furthermore, ratepayers will be responsible for funding a $550 million transmission line specifically built to serve the data center, the organization stated.

Impact on Meta's Sustainability Goals

While Meta has actively been increasing its purchases of renewable energy, including a recent 100-megawatt acquisition, these natural gas generators will present a significant challenge to the company’s 2030 net zero commitment.

This will effectively lock in carbon dioxide emissions for several decades. To counterbalance these emissions, Meta will likely need to invest in carbon removal projects and purchase credits.

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