(The Center Square) – Louisiana Economic Development confirmed their office is seeing “extensive” interest from and are in correspondence with companies looking to locate data centers in the state.
The latest surge of interest follows a landmark deal earlier this year between Entergy Louisiana and Meta to build a $10 billion data center in Richland Parish.
The Louisiana Public Service Commission approved Entergy’s plan to construct three new combined-cycle natural gas plants, transmission lines, and substation upgrades to power the facility.
Entergy regulatory affairs manager Larry Hand told commissioners the Meta deal was the product of years of negotiations and stressed that the agreement shields ratepayers from excessive costs.
“We made sure that Meta’s deal would ensure that they would pay enough to cover the generation costs that they are contributing to,” Hand said. “At the end of the day, we believe the net impact on a monthly bill for a customer is going to be plus or minus $1 or so.”
Commissioner Foster Campbell, representing northeast Louisiana, praised the project as a “once-in-a-generation investment opportunity.”
On Monday, the state’s Task Force on Energy Infrastructure and Modernization continued work on a long-term power strategy aimed at supporting industrial growth, including data centers. Lawmakers say reliable electricity has become an economic development issue.
“In the past, we’ve never really had a plan,” Senate President Cameron Henry, R-Metairie, said at the task force’s first meeting. “Our economic development opportunities – not only in north Louisiana, but in south Louisiana as well – are dependent upon having reliable power. We can’t have all of our projects be held up by whether utilities can meet demand.”
State officials say more than 200 projects are in the economic development pipeline, and every single one cites power supply as the primary concern. Data centers in particular have large demands for both electricity and water, putting pressure on grid capacity and groundwater resources.
“We have a lot of data centers that are very interested in moving down to Louisiana,” said Dustin Davidson, an energy department official. “That is a huge benefit that we have, and we are working closely with LED to make the process as smooth as possible.”
The task force is considering a mix of solutions, including natural gas generation, battery storage, nuclear energy options, and improved groundwater mapping to protect drinking water supplies while supporting industry.
The task force, chaired by Sen. Beth Mizell, R-Franklinton, will meet over the coming months to develop policy recommendations to strengthen Louisiana’s energy infrastructure. Officials say aligning state agencies, utilities, and local governments is key to meeting the expected surge in demand.
“Power is something we never thought we’d run out of, but now we’re seeing the demand,” Henry said. “We’re going to work with utilities and regulators, not compete with them, to figure out the best way to improve our grid and supply power for residents and businesses.”
