Meta, Entergy in deal to triple power to Hyperion data center

(The Center Square) – Meta Platforms Inc. will fund the construction of seven new natural gas-fired power plants in addition to three previously announced to fuel its massive $27-billion Hyperion Data Center project in Richland Parish, Louisiana, positioning the facility to be the largest in the world.In a revision to its agreement with Entergy Louisiana initially approved by the Louisiana Public Service Commission in August 2025, Meta will add 5.2 gigawatts of gas-fired power to the state’s electric grid along with 2.5 gigawatts of new solar capacity. This is in addition to the 2.3 gigawatts of gas-fired power agreed in August.Entergy now forecasts the project will deliver $2.65 billion of benefits to consumers, up from $650 million, along with 240 miles of new high-voltage transmission lines and battery storage at three locations.The 500-kV transmission lines are designed to connect energy resources in South Louisiana directly to the data center in North Louisiana and across the state line into Arkansas.“This agreement reflects what’s possible when strong partners align around long-term growth and value,” said Phillip May, president and CEO of Entergy Louisiana. “Working with our customers, regulators and state leaders, we are making targeted investments that strengthen reliability, support economic development and deliver meaningful benefits to customers – all while keeping energy rates affordable, which aligns perfectly with Meta’s Ratepayer Protection Pledge and Entergy’s Fair Share Plus pledge.”The Meta data center project is the first to be fast-tracked under the Louisiana Public Service Commission’s recently adopted “Lightning Amendment,” a regulatory framework designed to approve large-scale infrastructure at “lightning speed” to meet the demands of the race to build infrastructure for artificial intelligence.Supporters of the Louisiana Lightning Speed initiative claim the accelerated 8-month timeline is essential for economic competitiveness, while critics contend that such rapid approvals bypass critical safeguards, potentially leaving local households to foot the bill for billions in new power infrastructure if Meta exits the state before it has fully paid for the assets.The unprecedented speed in completing Meta’s deal with Entergy and the complex ownership structure have drawn sharp criticism from groups like the Alliance for Affordable Energy, which warns the project creates a “generational risk” for local ratepayers.Commission Commissioner Davante Lewis, who cast the lone dissenting vote in opposition to the Lightning Amendment, cautioned that the 15-year power agreement potentially leaves Louisiana households responsible for the remaining costs of the gas plants – which have a 30-year operational lifespan – should Meta exit the state early.Fueling those concerns is a recent financing arrangement in which Meta sold an 80% stake in the data center to private equity firm Blue Owl Capital, a move critics argue creates a loophole allowing the tech giant to exit its lease every four years. Under the agreement, Blue Owl would borrow roughly $27.3 billion through bonds to finance the project and Meta would lease the data center in four-year terms.While the commission declined to launch a formal probe into the ownership change last month in a 4-1 vote, Lewis and consumer advocacy groups maintain that such “financial maneuvering” increases the risk that the cost to build these long-term infrastructure assets could eventually be borne by Louisiana ratepayers.Entergy Louisiana is also seeking approximately $237 million in property tax relief over the next decade to offset the costs of the required grid upgrades. While the utility contends the tax exemptions are necessary to keep the project viable and energy rates affordable, critics argue the request further shifts the financial burden of the high-tech expansion onto Louisiana taxpayers.At peak capacity, the 7.7 gigawatts of electricity generated by the 10 natural gas-fired plants that fall under the agreement is about seven times the peak power demand of the City of New Orleans.To address concerns that this massive power draw could strain the grid, Meta signed a Ratepayer Protection Pledge to ensure it covers the direct costs of the infrastructure. Entergy projects the $2.65 billion in total customer benefits over the next 20 years will primarily subsidize the grid’s existing fixed costs, such as storm recovery and resilience upgrades, which would otherwise be paid by residential ratepayers.Entergy stated the deal should lead to a 10% reduction in the storm recovery and grid resilience fees currently on consumers’ power bills.“Our Richland Parish data center serves as a symbol of the ambition and scale of next-generation AI infrastructure,” said Rachel Peterson, vice president of Data Centers at Meta. “We’ve been working closely with Entergy since early on-site planning to ensure our power needs are met and, importantly, so that Entergy’s other consumers aren’t paying our costs,” said Peterson.In addition to the costs of building infrastructure, Meta has agreed to fund $260 million of community initiatives, $120 million for bill assistance through ‘The Power to Care’ program, and $140 million for residential energy efficiency projects.The Louisiana Alliance for Affordable Energy, a consumer advocacy group, warns that such non-binding commitments lack the permanence required for a multi-decade infrastructure build-out.“Meta pointing to upfront payments and charitable contributions doesn’t change the fundamental risk this deal places on Entergy Louisiana customers and Louisiana families in the long term,” the Alliance said in a statement.“There are potentially decades of expenses tied to these gas plants,” the Alliance said. “The current agreements in place do not provide the kind of long-term certainty that customers need in this era of rapidly shifting AI partnerships and investments, where major companies like Disney are backing out of high-profile agreements.”