To land Meta massive data center, Louisiana pulled out all the stops

Hundreds of construction workers and tons of heavy equipment in a large area of ​​250 miles north of New Orleans, 2,250 acres, transforms old soybeans into the largest data centers in the Western Hemisphere. And in this process, the authorities say they have transformed the Louisiana economy.

“He put us on a scale with a large number of people who rethink Louisiana, not only at home, but internationally,” Susan Bourgeois, the Secretary of Economic Development, said. He said.

MetaFacebook, Instagram and WhatsApp’s parent company, announced In December, he chose Louisiana as a site for the largest data center so far – a $ 10 billion center for rapidly growing artificial intelligence operations. The announcement initiated the public stage with the promise and danger of a real world experiment, which is one of the most sought -after trophies in the war between the states.

Data centers are the giant collections of giant computer servers required to process very complex operations for things such as artificial intelligence and data storage. They usually take large areas and use large amounts of power and water, but they employ very few people. Meta’s latest data center will ultimately create only 500 permanent businesses, but employment will rise to approximately 5,000 during construction. However, meta found himself without a shortage of aspire who wanted to meet his demands.

“We have started looking for a place where we can expand to Gigawatts very quickly and we can move in this community on a very fast land,” said Rachel Peterson, Vice President of Meta Data Centers. He said. He continued: “We need to find very large adjacent lands that have access to the infrastructure we need, the energy we need and that we can move very quickly for us.”

A site ready for a shovel, 1,700 football field length

Louisiana was one of the few states that could offer a large site as much as the equivalent of about 1,700 football fields. In the rural Richland community, the state bought most of the land in the hope of attracting an automotive facility that never took place in 2006.

As for the energy – Meta site, the most intense day of the City of New Orleans will use twice the electricity – local service Entergy’nin can deliver, he said.

Entergy Louisiana CEO Phillip May said, “An opportunity for this industry to grow in a way that has not seen for decades,” he said. The company is looking for regulatory approval to build three gas fuel power plants, not one, not one, but at a cost of more than $ 3 billion in the field.

The only piece that Louisiana did not have was something Bourgeois said it was unharged for Meta: a program that allowed the company to avoid paying billions of dollars of sales tax to the equipment for the construction and operation of the center.

Last June, only six months after taking office, the Republican government Jeff Landry signed the law 20 -year sales tax exemption For data centers built before 2029. The fact that the state founded commodities at that time was not explained.

Burgeois, “Meta Millet, from the first day to us to realize such a project, this exemption or discount – regardless of the formula – clearly revealed that there should be.” He said.

“One of the things we’re looking at,” Peterson said. “Obviously these are very high investment capital projects for us and others who develop and deposit data centers. Therefore, we look at the general cost of the project to ensure that it is compatible with what we expect.”

A recent CNBC investigation found that in the last five years, 16 states have distributed approximately 6 billion dollars in similar sales tax deductions, and that was only the announced. More often, the amounts are either not explained or, as in Louisiana, the authorities do not yet know the full cost.

One analysis In May, the state’s legislative office, the incentive to the state “each year tens of millions of dollars or more, probably (financial year) may cost 2059,” he said.

However, regardless of the cost, the benefits of the bourgeois project predominated.

“This was not only about the isolated sales tax, what the state would win or lose.” He said. “We want to compete with Texas. Mississippi, Alabama, Georgia, South Carolina, we want to compete with all our southern neighbors.”

Meta generated 164.5 billion dollars last year.

Energy equation in the province provided that acne grill record

Although Entergy undertakes to produce a large amount of electricity to support it, there are also concerns about the energy needs of the facility.

The Louisiana Public Service Commission is considering the proposal of public service to build three new power plants. However, a group of citizens warns an affordable energy alliance, the project can endanger the state’s power network and increase electricity rates throughout the state.

“They’re adding a large electricity consumers when building new power plants,” Jackson Voss, the Climate Policy Coordinator for the Group, said. He said. “So we’re all still faced with the same security vulnerabilities we’ve been before, but now a big new data center is being added.”

Louisiana has an acne record of grilled reliability. According to the US Department of Energy, the CNBC was analyzed by the CNBC for the best states of America’s business work, the average Louisiana customer lost a power for 9.7 hours in 2023, the current data is 40th.

Nevertheless, 100,000 Entergy Customer in New Orleans Loss power Commemoration Day Weekend When the regional power network is overloaded.

Entergy’s May, additional production capacity for the commodity plant-gaz fuel plants in addition to 1,500 megawatt solar energy, including-not less, more stable, he said. And the project will ultimately reduce electricity bills throughout the state.

“We take new power plants that will heal in terms of productivity. Increading, more efficient power plants will be lower fuel costs as a result of the addition of the addition,” he said.

He also said that while Entergy pays for the power plants, he would pay for Meta’s infrastructure to connect to them.

He continued: “So, hundreds of millions of dollars of support will not come from this customer.”

More importantly, he said that the project would be a great economic support for Richland Parish, one of the poorest regions in the state, although not a nation.

“This big $ 10 billion investment is combined with billions of dollars to invest in ourselves, it will bring new opportunities for these communities,” he said.

“In Richland Parish, even in this northeast Louisiana region, 500 business is transnative.” He said.

He also said that this project opened the door for more.

“I can try to sell Louisiana to the world for a long time.” “The truth [Meta] Choosing us makes my job much easier. “