News Summary
On July 11, 2025, Meta commenced construction on a $10 billion AI data center in Holly Ridge, Louisiana. The project occupies 2,250 acres and aims to meet increasing demands for AI infrastructure. With an anticipated energy need surpassing that of New Orleans, Meta’s plans for the facility include potential expansion, job creation in a struggling region, yet raise concerns about local energy costs and regulatory measures. The future impact of the Louisiana Public Service Commission’s decisions will play a crucial role in shaping this significant investment.
Holly Ridge, Louisiana – Construction Commences on Meta’s $10 Billion AI Data Center
On July 11, 2025, construction officially began on Meta’s anticipated $10 billion artificial intelligence (AI) data center in Holly Ridge, Louisiana, approximately 250 miles north of New Orleans. This significant project represents a major investment by Meta, aimed at bolstering its infrastructure to support advanced AI technologies.
The new data center will occupy a vast area equivalent to around 70 football fields, totaling around 2,250 acres. Plans are already in place to expand the facility to a size comparable to Manhattan, reflecting Meta’s long-term vision for the site.
To power this data center, Meta will require a staggering 2,600 megawatts of electricity, which is substantial given that it exceeds the peak energy demand experienced by New Orleans. Entergy Louisiana has proposed to build three new gas-fired power plants to meet this extraordinary energy demand, with an estimated cost exceeding $3 billion.
Infrastructure and Regulatory Measures
In addition to the power plants, a $550 million transmission line is needed to support the data center’s electricity needs. However, Meta will not be financially responsible for this transmission line, raising concerns among local advocates about who will ultimately bear the costs.
A regulatory vote from the Louisiana Public Service Commission (PSC) regarding this project is scheduled for August 20, 2025. This timeline has been accelerated from previously set dates, drawing scrutiny from some public officials. Critics, including Public Service Commissioner Davante Lewis, have expressed apprehension over the expedited process, which some argue does not allow adequate time for thorough debate.
Potential Impact on Local Economy
Supporters of the project include key Louisiana officials, such as Governor Jeff Landry and Public Service Commissioner Foster Campbell, who believe that this development will transform the local economy and create job opportunities in one of Louisiana’s most impoverished regions. The data center is expected to create at least 300 permanent jobs and around 5,000 jobs during its peak construction phase.
However, this development is not without controversy. There are fears that ordinary ratepayers as well as industrial companies might incur additional costs resulting from the data center’s substantial energy consumption. Advocacy groups have raised alarms regarding the ramifications this could have on local electricity prices and the overall reliability of Louisiana’s power grid, which has been historically frail at times.
Supporting Strategies and Financial Framework
To assist in attracting massive investments like this, Louisiana has enacted a 20-year sales tax exemption specifically for data centers built before 2029. This measure is seen as a key incentive for attracting Meta’s significant investment and future expansions.
Meta has also secured a financial backing partnership with Pacific Investment Management Co. and Blue Owl Capital Inc., for a $29 billion financing scheme aimed at supporting the extensive infrastructure needs of the AI data center.
Conclusion
While the development of Meta’s AI data center in Holly Ridge has the potential to provide significant economic benefits and employment opportunities, it also raises complex issues surrounding energy consumption, costs to ratepayers, and regulatory oversight. As the construction progresses, the PSC’s forthcoming decisions and the ongoing public discourse will likely shape the project’s impact on the local community and infrastructure for years to come.
Deeper Dive: News & Info About This Topic
- NOLA: Meta’s $10 Billion AI Data Center in Louisiana
- Google Search: Meta AI Data Center Louisiana
- CNBC: Meta’s Massive Data Center in Louisiana
- Wikipedia: Data Center
- Built In: Meta Secures $29B Financing for Data Center
- Encyclopedia Britannica: Artificial Intelligence
- GovTech: Judge Dismisses Challenge to Meta’s Data Center
- Data Center Frontier: Poll on AI Data Centers
- KALB: LSUA Betting on AI Industry Growth in Louisiana
- Google News: Meta Data Center Louisiana
Author: STAFF HERE NEWORLEANS WRITER
NEW ORLEANS STAFF WRITER The NEW ORLEANS STAFF WRITER represents the experienced team at HERENewOrleans.com, your go-to source for actionable local news and information in New Orleans, Orleans Parish, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as French Quarter Festival, New Orleans Jazz & Heritage Festival, and Essence Music Festival. Our coverage extends to key organizations like the New Orleans Chamber of Commerce and Greater New Orleans, Inc., plus leading businesses in energy, healthcare, and education that power the local economy such as Entergy, Ochsner Health, and Tulane University. As part of the broader HERE network, including HEREShreveport.com, we provide comprehensive, credible insights into Louisiana's dynamic landscape.
