LOUISIANA'S $3B POWER UPGRADE FOR META DATA CENTER SPARKS DEBATE OVER WHO PAYS

Louisiana officials have approved a $3 billion power grid upgrade to support Meta’s new data center complex, raising heated questions over who should ultimately bear the cost of infrastructure tied to Big Tech’s massive energy demands.

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The project, one of the largest grid modernization efforts in state history, underscores both the opportunities and tensions that arise as technology giants expand into regions with aging electrical systems.

META'S DATA CENTER EXPANSION

Meta, the parent company of Facebook, Instagram, and WhatsApp, announced plans last year to build a state-of-the-art data center campus in Louisiana to house its growing artificial intelligence workloads and cloud infrastructure. Like other hyperscale data centers, the facility will require enormous and steady electricity supplies, not only to power servers but also to support advanced cooling systems.

While Meta has pledged to run its operations on renewable energy, the immediate demand for reliable power requires significant investment in transmission lines, substations, and grid reinforcement. Louisiana's Public Service Commission (PSC) approved the $3 billion utility upgrade this summer, but the vote was split, with commissioners divided over who should pay for the expansion.

WHO SHOULD FOOT THE BILL?

At the heart of the debate is whether Louisiana's general ratepayers—households and small businesses—should subsidize infrastructure built primarily to accommodate Meta's needs.